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I-1","page_number":16,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"f19012e9-1d60-440b-a772-7d0725eda7b0","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":16,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"47f10e4e-1025-47eb-919d-fb97447ef71d","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-24","page_number":16,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"b23adc4b-ecf2-4a5b-9e13-e5146234a83f","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"f8889b35-8e72-4950-8031-ec0a827d3abd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":16,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"765d7310-edfa-4fb2-a36f-7c7d00fc9f92","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"c0a6dfc1-b834-4a81-a781-e6366dfbf374","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Please see Part","page_number":17,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"1724ac7e-2c26-4731-84b5-599de8ed1b5b","block_type":"box","text":"II of this SAI for further information on these investments and investment strategies. Information contained in Part II","page_number":17,"box":{"x":70,"y":498,"width":828,"height":11}},{"id":"85d1a4d3-9958-404b-99a7-8cdb2660751d","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":17,"box":{"x":69,"y":514,"width":805,"height":11}},{"id":"19115a70-48d5-4b8f-bbe9-c4793460801d","block_type":"box","text":"extent a Fund makes each type of investment or uses each investment strategy. Also set forth below is a listing of","page_number":17,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"52311d7c-7c6f-45b8-a082-f839afd0b235","block_type":"box","text":"the proxy voting policy and related guidelines applicable to each Fund. 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Unless otherwise provided,","page_number":22,"box":{"x":69,"y":249,"width":829,"height":11}},{"id":"b55662ac-9444-4f40-84a5-0a2a98653b4f","block_type":"box","text":"all references below to the assets of a Fund are in terms of current market value.","page_number":22,"box":{"x":69,"y":264,"width":580,"height":9}},{"id":"b880bff0-935e-41ae-96c6-83a5ea966613","block_type":"box","text":"Under the fundamental investment restrictions, the Funds may not:","page_number":22,"box":{"x":102,"y":286,"width":476,"height":12}},{"id":"b11b1810-0588-42ff-8c01-fc0586f8c66e","block_type":"box","text":"1. Invest more than 25% of its total assets, taken at market value, in the securities of issuers in any particular","page_number":22,"box":{"x":102,"y":309,"width":791,"height":11}},{"id":"89daa6e5-bb27-49a9-b520-40976d207826","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities); provided, that in replicating the","page_number":22,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"5a5cd3d0-a256-4a39-bc6e-ee8c36929e2d","block_type":"box","text":"weighting of a particular industry in its target index, the applicable Master Portfolio or Fund may invest more than","page_number":22,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"d3316cb2-bafe-4b4a-b950-c8cdfb9b3509","block_type":"box","text":"25% of its total assets in securities of issuers in that industry when the assets of companies included in the target","page_number":22,"box":{"x":69,"y":355,"width":823,"height":11}},{"id":"810eb7de-ebb0-4de6-a6f1-4aab8edfa346","block_type":"box","text":"index that are in the industry represent more than 25% of the total assets of all companies included in the index.","page_number":22,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"0f077c6f-a306-44e8-a17a-b4f61a8ed118","block_type":"box","text":"2. Borrow money, except that (a) a Fund, to the extent permitted by applicable law, may borrow from banks (as","page_number":22,"box":{"x":102,"y":392,"width":787,"height":12}},{"id":"f8789664-88f1-403c-90df-bbe22185f61a","block_type":"box","text":"defined in the Investment Company Act), other affiliated investment companies and other persons or through reverse","page_number":22,"box":{"x":69,"y":407,"width":834,"height":12}},{"id":"de4d27b5-dd28-4610-9dcb-e5d96002db3e","block_type":"box","text":"repurchase agreements in amounts up to 33","page_number":22,"box":{"x":69,"y":423,"width":319,"height":11}},{"id":"d3c1014f-bf39-4a31-be37-4cf4f7472bc0","block_type":"box","text":"1⁄","page_number":22,"box":{"x":390,"y":423,"width":5,"height":5}},{"id":"e1231b9b-7041-49cb-902e-3d207118180e","block_type":"box","text":"1⁄3","page_number":22,"box":{"x":393,"y":423,"width":8,"height":8}},{"id":"1bbd0f28-522c-478c-8796-fc9d5182bc13","block_type":"box","text":"⁄3","page_number":22,"box":{"x":399,"y":426,"width":6,"height":6}},{"id":"999b45aa-d1c5-46dd-a192-ec0023043a32","block_type":"box","text":"% of its total assets (including the amount borrowed), (b) a Fund may,","page_number":22,"box":{"x":405,"y":423,"width":495,"height":11}},{"id":"d0ce8c8d-d3c0-4877-a522-8ec719c1261d","block_type":"box","text":"to the extent permitted by applicable law, borrow up to an additional 5% of its total assets for temporary purposes,","page_number":22,"box":{"x":68,"y":438,"width":819,"height":11}},{"id":"1c59e81a-c426-4023-9f2e-06a664413429","block_type":"box","text":"(c) a Fund may obtain such short-term credits as may be necessary for the clearance of purchases and sales of","page_number":22,"box":{"x":69,"y":453,"width":798,"height":11}},{"id":"5fd7ea5f-ee3d-4ff9-94e3-bb54b44d6c9c","block_type":"box","text":"portfolio securities, (d) a Fund may purchase securities on margin to the extent permitted by applicable law and (e) a","page_number":22,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"1b712384-184a-47d4-a3db-405a5a63ef19","block_type":"box","text":"Fund may engage in transactions in mortgage dollar rolls which are accounted for as financings.","page_number":22,"box":{"x":70,"y":483,"width":682,"height":11}},{"id":"fca0583f-87fe-4f0d-a7a6-2a4fcbffc6b8","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate applicable law.","page_number":22,"box":{"x":102,"y":506,"width":589,"height":11}},{"id":"ecb5f2b2-de50-4f10-9ac5-80fadebb8ab6","block_type":"box","text":"4. Purchase, hold or deal in real estate, although a Fund may purchase and sell securities that are secured by","page_number":22,"box":{"x":101,"y":529,"width":787,"height":11}},{"id":"380bdfbe-1c42-4d22-9629-1c742f84c55d","block_type":"box","text":"real estate or interests therein, securities of real estate investment trusts and mortgage-related securities and may","page_number":22,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"faa14e04-21a2-4dfd-b809-6b63a28fad8b","block_type":"box","text":"hold and sell real estate acquired by the Fund as a result of the ownership of securities.","page_number":22,"box":{"x":69,"y":559,"width":628,"height":11}},{"id":"aedd2cd2-cfff-4b81-a17a-c5b821a08036","block_type":"box","text":"5. Underwrite securities issued by others, except to the extent that the sale of portfolio securities by a Fund may","page_number":22,"box":{"x":102,"y":581,"width":806,"height":11}},{"id":"52f1ea7d-19ca-4796-825e-e49fc4f28f56","block_type":"box","text":"be deemed to be an underwriting.","page_number":22,"box":{"x":69,"y":597,"width":239,"height":11}},{"id":"87d96e18-5b75-40c4-ad81-a730775a721d","block_type":"box","text":"6. Purchase or sell commodities or contracts on commodities, except to the extent that a Fund may do so in","page_number":22,"box":{"x":102,"y":619,"width":771,"height":11}},{"id":"dbb5989d-e029-4b69-9355-44a7a11606a3","block_type":"box","text":"accordance with applicable law and the Fund’s Prospectus and SAI, as they may be amended from time to time, and","page_number":22,"box":{"x":69,"y":634,"width":829,"height":11}},{"id":"b60fdfa3-832e-496e-b014-cc08d015fbbe","block_type":"box","text":"without registering as a commodity pool operator under the Commodity Exchange Act.","page_number":22,"box":{"x":68,"y":649,"width":609,"height":12}},{"id":"2e1d3289-51e0-4d54-8c81-41bb3d455fe6","block_type":"box","text":"7. Make loans, except through (a) the purchase of debt obligations in accordance with the Fund’s investment","page_number":22,"box":{"x":102,"y":672,"width":778,"height":11}},{"id":"15287372-16da-4406-8ba9-3e42245731e9","block_type":"box","text":"objective and policies, (b) repurchase agreements with banks, brokers, dealers and other financial institutions,","page_number":22,"box":{"x":69,"y":687,"width":789,"height":11}},{"id":"eb508e86-c5ff-4c78-be1e-0b5ef50653b2","block_type":"box","text":"(c) loans of securities as permitted by applicable law, and (d) loans to affiliates of the Fund to the extent permitted by","page_number":22,"box":{"x":69,"y":702,"width":839,"height":11}},{"id":"6cc9a3fa-30fa-4acc-92f7-6086eccee359","block_type":"box","text":"law.","page_number":22,"box":{"x":70,"y":718,"width":24,"height":8}},{"id":"3becc9f5-cc0b-4851-998e-5826343f8781","block_type":"box","text":"Notations Regarding the Funds’ Fundamental Investment Restrictions","page_number":22,"box":{"x":102,"y":740,"width":494,"height":11}},{"id":"1d512ac1-299b-490f-9353-3ee354c32b0f","block_type":"box","text":"The following notations are not considered to be part of each Fund’s fundamental investment restrictions and","page_number":22,"box":{"x":101,"y":763,"width":782,"height":11}},{"id":"8efd308d-8f23-45f5-bf0d-759ff1ac28e4","block_type":"box","text":"are subject to change without shareholder approval. With respect to the fundamental policy relating to concentration","page_number":22,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"82cc213f-a4b5-4468-8d3c-bb7f538335ae","block_type":"box","text":"set forth in (1) above, with respect to a Fund’s industry classifications, each Fund currently utilizes any one or more","page_number":22,"box":{"x":69,"y":793,"width":826,"height":11}},{"id":"ba5db8df-1441-4f64-8ef4-d33bd1e65c42","block_type":"box","text":"of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes,","page_number":22,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"b2ae91eb-f63e-40bc-94e3-7fb467f2f8a4","block_type":"box","text":"and/or as defined by Fund management. The policy also will be interpreted to give broad authority to each Fund as to","page_number":22,"box":{"x":69,"y":823,"width":835,"height":12}},{"id":"1d2461a6-aa33-4732-aad9-f805456ca7ee","block_type":"box","text":"how to classify issuers within or among industries.","page_number":22,"box":{"x":69,"y":838,"width":358,"height":12}},{"id":"1f72524a-7b1f-4fa6-ae86-a7f00665e58c","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":22,"box":{"x":102,"y":861,"width":768,"height":11}},{"id":"6c0dc44c-e129-42d1-a292-a06c70f7bf0f","block_type":"box","text":"approval, the Funds may not:","page_number":22,"box":{"x":69,"y":876,"width":205,"height":11}},{"id":"711fe7a8-ff5c-4e57-8930-13ea4880da2b","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"3edd33ee-0d2d-489c-a9a3-304f0f71ed51","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c8511fed-7353-4b96-8ec9-385401499b7a","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by applicable law. As a","page_number":23,"box":{"x":102,"y":45,"width":775,"height":11}},{"id":"6a5ae8f6-5182-4954-8802-3822d8a0076b","block_type":"box","text":"matter of policy, however, a Fund will not purchase shares of any registered open-end investment company or","page_number":23,"box":{"x":69,"y":60,"width":778,"height":11}},{"id":"331ff4a5-1bf3-42e8-8b1f-220ad761ce87","block_type":"box","text":"registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds” provisions) of the","page_number":23,"box":{"x":69,"y":75,"width":789,"height":11}},{"id":"da220845-19e8-4db6-a14a-086d6e1dc456","block_type":"box","text":"Investment Company Act, at any time its shares are owned by another investment company that is part of the same","page_number":23,"box":{"x":70,"y":90,"width":825,"height":11}},{"id":"0451a7be-79e6-4023-90dc-0e6f24c136c4","block_type":"box","text":"group of investment companies as the Fund.","page_number":23,"box":{"x":68,"y":105,"width":317,"height":11}},{"id":"8751a2b1-66f3-4a89-9f22-c2bc2918634e","block_type":"box","text":"b. Make short sales of securities or maintain a short position, except to the extent permitted by a Fund’s","page_number":23,"box":{"x":102,"y":128,"width":751,"height":11}},{"id":"549a961a-b25a-41a4-9e66-f2dcf932d880","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":23,"box":{"x":69,"y":143,"width":510,"height":11}},{"id":"1bd57cf3-d9fc-4adb-8868-a7d857305de3","block_type":"box","text":"Unless otherwise indicated, all limitations under the Funds’ fundamental or non-fundamental investment","page_number":23,"box":{"x":102,"y":166,"width":744,"height":10}},{"id":"1bf8e385-fb58-4f95-965b-ba6d50db74df","block_type":"box","text":"restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of a Fund’s assets","page_number":23,"box":{"x":69,"y":181,"width":830,"height":11}},{"id":"58647e4b-620e-477f-80da-1cc951371a59","block_type":"box","text":"invested in certain securities or other instruments resulting from market fluctuations or other changes in the Fund’s","page_number":23,"box":{"x":70,"y":196,"width":825,"height":11}},{"id":"777e1225-4e0b-46a7-823f-9a01c5dfd148","block_type":"box","text":"total assets will not require the Fund to dispose of an investment until BFA determines that it is practicable to sell or","page_number":23,"box":{"x":68,"y":211,"width":834,"height":11}},{"id":"3be736b2-7eb6-4ca5-9402-010d93f2a3c2","block_type":"box","text":"close out the investment without undue market or tax consequences.","page_number":23,"box":{"x":69,"y":226,"width":492,"height":11}},{"id":"6bc44c44-ea42-4c79-9a6c-7310cf61f9da","block_type":"box","text":"III. Information on Trustees and Officers","page_number":23,"box":{"x":69,"y":256,"width":290,"height":9}},{"id":"ba04c9a3-255f-42d1-a5c4-ce6c7bd412d4","block_type":"box","text":"The Board consists of thirteen individuals (each, a “Trustee”), eleven of whom are not “interested persons” of","page_number":23,"box":{"x":101,"y":279,"width":789,"height":11}},{"id":"f9b92e1f-40c3-455d-82d4-ffa34ef6e72f","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The same individuals serve on the","page_number":23,"box":{"x":68,"y":294,"width":838,"height":11}},{"id":"2c4bc1e2-84db-4544-accf-750b752be31d","block_type":"box","text":"Board of Trustees of MIP. The registered investment companies advised by the Manager or its affiliates (the","page_number":23,"box":{"x":70,"y":309,"width":768,"height":11}},{"id":"c1142e37-669d-4579-99f0-388be7d043b0","block_type":"box","text":"“BlackRock-advised Funds”) are organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income","page_number":23,"box":{"x":70,"y":324,"width":794,"height":12}},{"id":"5dd9433c-9d59-4ab4-a39b-fa4e1ad556a1","block_type":"box","text":"Complex, and the iShares Complex (each, a “BlackRock Fund Complex”). The Trust and MIP are included in the","page_number":23,"box":{"x":69,"y":340,"width":792,"height":10}},{"id":"12f583f9-cf1c-483c-b0db-9709a77ced1f","block_type":"box","text":"BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex. The Trustees also oversee as board","page_number":23,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"70e18490-7f3d-4f85-ae4f-3152e7067977","block_type":"box","text":"members the operations of the other open-end registered investment companies included in the BlackRock Multi","page_number":23,"box":{"x":69,"y":370,"width":807,"height":11}},{"id":"3ec64f49-807e-451d-8956-6dec1b0c7169","block_type":"box","text":"Asset Complex.","page_number":23,"box":{"x":68,"y":385,"width":110,"height":11}},{"id":"4c985abf-910d-495b-8f1a-b3e44f012733","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and each Fund. The Chair of the Board is an","page_number":23,"box":{"x":101,"y":407,"width":781,"height":12}},{"id":"d16056e9-22e9-4656-9932-08e86c88cd2b","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":23,"box":{"x":70,"y":423,"width":827,"height":11}},{"id":"1ba74cef-28ce-406a-8740-e7434e5cb7d8","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":23,"box":{"x":70,"y":438,"width":821,"height":11}},{"id":"f053bcb2-b6ec-49ea-b176-9dbdad04fb69","block_type":"box","text":"Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":23,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"4a951d4d-57f5-4b6b-a750-31e9b6f00e4f","block_type":"box","text":"is to preside at all meetings of the Board and to act as a liaison with service providers, officers, attorneys and other","page_number":23,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"a60dc344-a4df-4924-af3b-93ca2383da19","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":23,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"795269f5-109a-4642-876d-8bfb21998e23","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":23,"box":{"x":69,"y":498,"width":810,"height":11}},{"id":"51852f24-0ccf-4964-a10c-1ea886e31be6","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":23,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"10f8fd90-da81-49de-a2f6-96ec0db43446","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to each Fund. The Board has","page_number":23,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"cfd1817a-bec2-404a-9764-f65af7406b8e","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":23,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"1b224402-04e3-44e5-826b-b3818da94b61","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and reports","page_number":23,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"03ad6279-821d-4510-b86d-a491d709b1f8","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":23,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"e32ef997-7db0-4baf-8a2b-6cab905be53e","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":23,"box":{"x":68,"y":589,"width":809,"height":11}},{"id":"c31a22d5-3197-4dad-a658-52cf3fa71d25","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":23,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"d679fc10-502d-40ae-acdc-31a35fd91d38","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":23,"box":{"x":69,"y":619,"width":441,"height":11}},{"id":"18283497-c823-41b7-854c-8a8d8d3bb6c8","block_type":"box","text":"The Board has engaged the Manager to manage each Fund on a day-to-day basis. The Board is responsible for","page_number":23,"box":{"x":101,"y":642,"width":788,"height":11}},{"id":"cd699d46-3a2f-4c4d-9848-e0ed8e065ac4","block_type":"box","text":"overseeing the Manager, other service providers, the operations of each Fund and associated risks in accordance","page_number":23,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"75b4bfe1-6353-4ce2-a4f6-df5fc3492ad4","block_type":"box","text":"with the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s charter, and each","page_number":23,"box":{"x":68,"y":672,"width":813,"height":11}},{"id":"76788397-7fc5-4249-b02c-71285d270747","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, each Fund’s performance,","page_number":23,"box":{"x":70,"y":687,"width":795,"height":11}},{"id":"0a3970ef-9df4-4a6f-8fb4-473b2c7e1704","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":23,"box":{"x":69,"y":702,"width":823,"height":12}},{"id":"1f6569cd-6155-4996-947a-a00a87c41230","block_type":"box","text":"in running the operations of each Fund.","page_number":23,"box":{"x":70,"y":717,"width":277,"height":12}},{"id":"ec8c106f-87af-4ba2-bfaa-b413c2880108","block_type":"box","text":"Day-to-day risk management with respect to each Fund is the responsibility of the Manager or of sub-advisers or","page_number":23,"box":{"x":102,"y":740,"width":796,"height":11}},{"id":"bb698039-7468-40c4-8411-51e2a8dd6d22","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. Each Fund is","page_number":23,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"e6c6c0f3-2b3e-4a2e-8ec8-c53ac5703041","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":23,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"2e1fda06-c66b-4291-a97f-088f259f6f51","block_type":"box","text":"there are a number of risk management functions performed by the Manager and the sub-advisers or other service","page_number":23,"box":{"x":68,"y":785,"width":820,"height":12}},{"id":"2fda0e1b-7ecb-4685-8fe4-95bb31bfc9fa","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Funds. Risk oversight forms","page_number":23,"box":{"x":70,"y":801,"width":820,"height":11}},{"id":"0385197e-ad80-411a-9fdd-88b9e0f8d880","block_type":"box","text":"part of the Board’s general oversight of each Fund and is addressed as part of various Board and Committee","page_number":23,"box":{"x":70,"y":816,"width":778,"height":11}},{"id":"4e13fb82-9c61-42b1-80f0-2d6a8b2c2461","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews reports from, among others, management, the","page_number":23,"box":{"x":69,"y":831,"width":815,"height":11}},{"id":"2e1223b9-f0d0-405d-9f1c-328a327f12be","block_type":"box","text":"independent registered public accounting firm for each Fund, sub-advisers and internal auditors for the investment","page_number":23,"box":{"x":70,"y":846,"width":814,"height":11}},{"id":"d232d080-02cc-4f93-869b-2a0c08932115","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by each Fund and management’s or the service","page_number":23,"box":{"x":69,"y":861,"width":776,"height":11}},{"id":"6465ee26-9da7-4b82-9bf1-80f57266bddd","block_type":"box","text":"provider’s risk functions. The Committee system facilitates the timely and efficient consideration of matters by the","page_number":23,"box":{"x":70,"y":876,"width":815,"height":11}},{"id":"ea1dcca2-eed7-4a06-9740-232d9fe383a8","block_type":"box","text":"Trustees, and facilitates effective oversight of compliance with legal and regulatory requirements and of each Fund’s","page_number":23,"box":{"x":68,"y":891,"width":833,"height":12}},{"id":"48dcbf6e-a0cd-4fc2-8dbc-15e0133d06e1","block_type":"box","text":"activities and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the","page_number":23,"box":{"x":69,"y":906,"width":734,"height":11}},{"id":"5695597e-51b7-4749-b932-338d2fb25a03","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"a2c0444c-ddb0-4e57-9329-9451dc7ea680","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"465765bb-9d76-4242-a2b2-58c5a49ff95a","block_type":"box","text":"implementation and testing of the Trust’s compliance program and reports to the Board regarding compliance","page_number":24,"box":{"x":70,"y":45,"width":781,"height":11}},{"id":"752f7831-ed4a-4582-9202-bd6326e6058e","block_type":"box","text":"matters for the Funds and their service providers. The Independent Trustees have engaged independent legal counsel","page_number":24,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"d4ad8b1a-2ca5-485a-8709-b361ee4fcbe1","block_type":"box","text":"to assist them in performing their oversight responsibilities.","page_number":24,"box":{"x":68,"y":75,"width":427,"height":11}},{"id":"05dd3a26-36f5-4546-b051-3d8cf8f0a9fa","block_type":"box","text":"Audit Committee.","page_number":24,"box":{"x":101,"y":98,"width":122,"height":9}},{"id":"74172e47-deff-421c-af60-2e498c2ac224","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":98,"width":673,"height":11}},{"id":"d8c34181-afa7-42bd-948a-1ea40d3f39d4","block_type":"box","text":"A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees. The principal","page_number":24,"box":{"x":68,"y":113,"width":814,"height":11}},{"id":"beb836be-6e0e-4a0d-b900-e9f6803b37c6","block_type":"box","text":"responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval, the selection,","page_number":24,"box":{"x":69,"y":128,"width":826,"height":11}},{"id":"fab79152-3936-4822-b916-7fc57dc51e70","block_type":"box","text":"retention, termination and compensation of each Fund’s independent registered public accounting firm (the","page_number":24,"box":{"x":69,"y":143,"width":765,"height":11}},{"id":"a3db1270-d8a1-42d6-a44e-a00306748275","block_type":"box","text":"“Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":24,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"bc378b18-846e-4238-892f-8ffb701ef928","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":173,"width":825,"height":11}},{"id":"9a04436b-bd81-48d0-943d-d422631ab1c6","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":188,"width":807,"height":12}},{"id":"0fd9830b-998a-493b-bd20-3990e46ab218","block_type":"box","text":"fees for each Fund; (3) review the conduct and results of each independent audit of each Fund’s annual financial","page_number":24,"box":{"x":68,"y":203,"width":804,"height":11}},{"id":"7dad028f-6f14-4ab4-bb93-f3f999888a4d","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":219,"width":834,"height":11}},{"id":"c1b025d7-b1a8-41ed-a098-b3a374385b62","block_type":"box","text":"regarding the accounting or financial reporting policies and practices of each Fund and the internal controls of each","page_number":24,"box":{"x":69,"y":234,"width":822,"height":11}},{"id":"da9d51b3-e28c-480e-a1d9-0e8a53e764ef","block_type":"box","text":"Fund and certain service providers; (5) oversee the performance of each Fund’s Independent Registered Public","page_number":24,"box":{"x":70,"y":249,"width":792,"height":11}},{"id":"1ef38935-23e8-4e45-a91c-76c401d2d6f0","block_type":"box","text":"Accounting Firm; (6) review and discuss with management and each Fund’s Independent Registered Public","page_number":24,"box":{"x":68,"y":264,"width":759,"height":11}},{"id":"98f970ea-c91e-496c-bdaf-c77e69ec436b","block_type":"box","text":"Accounting Firm the performance and findings of each Fund’s internal auditors; (7) discuss with Fund management","page_number":24,"box":{"x":68,"y":279,"width":821,"height":11}},{"id":"3636388a-55f5-478c-af14-d448c2f0fb69","block_type":"box","text":"its policies regarding risk assessment and risk management as such matters relate to each Fund’s financial","page_number":24,"box":{"x":70,"y":294,"width":770,"height":11}},{"id":"60014bb2-5f5c-4747-856d-09a5ac3e97c4","block_type":"box","text":"reporting and controls; (8) resolve any disagreements between Fund management and the Independent Registered","page_number":24,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"3843c543-bb82-42d9-831d-cead706bed64","block_type":"box","text":"Public Accounting Firm regarding financial reporting; and (9) undertake such other duties and responsibilities as may","page_number":24,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"f55cc9ef-87dd-4bea-8812-bda0bdfd4c88","block_type":"box","text":"from time to time be delegated by the Board to the Audit Committee. The Board has adopted a written charter for the","page_number":24,"box":{"x":68,"y":339,"width":837,"height":12}},{"id":"b8ea88d4-4ca7-4a10-89d6-34c44902d049","block_type":"box","text":"Audit Committee. During the fiscal year ended December 31, 2025, the Audit Committee met four times.","page_number":24,"box":{"x":68,"y":355,"width":747,"height":11}},{"id":"24ae78cc-53b9-48a5-b540-c37091c9051d","block_type":"box","text":"Governance and Nominating Committee.","page_number":24,"box":{"x":102,"y":377,"width":286,"height":12}},{"id":"5cb8d1e3-2441-49a0-97d0-c601c32f1131","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":24,"box":{"x":394,"y":377,"width":464,"height":12}},{"id":"75930729-4bde-43d6-9294-5df7b53b14fb","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton","page_number":24,"box":{"x":70,"y":392,"width":833,"height":12}},{"id":"bb641e25-5e4b-4558-8ea2-2c2e1ad795e8","block_type":"box","text":"and Henry R. Keizer, all of whom are Independent Trustees. The principal responsibilities of the Governance","page_number":24,"box":{"x":69,"y":407,"width":769,"height":12}},{"id":"7ed5fcbc-c03b-470b-84c9-ac39b7c25118","block_type":"box","text":"Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and recommend","page_number":24,"box":{"x":69,"y":423,"width":802,"height":11}},{"id":"c77dd59a-87e3-4507-a16e-6d8fc77e41a5","block_type":"box","text":"Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the Board with","page_number":24,"box":{"x":70,"y":438,"width":819,"height":11}},{"id":"785e9eab-85ec-4c1f-88e2-c77f6c939362","block_type":"box","text":"respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee periodic","page_number":24,"box":{"x":69,"y":453,"width":810,"height":11}},{"id":"cd536f59-e1de-428c-9c87-4070a957df78","block_type":"box","text":"self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review and make","page_number":24,"box":{"x":69,"y":468,"width":824,"height":11}},{"id":"be26ed03-a90c-41f3-9b1f-7dc18dbffe0b","block_type":"box","text":"recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters and","page_number":24,"box":{"x":69,"y":483,"width":793,"height":11}},{"id":"adee041d-0f49-42a0-91bf-b83badde7e82","block_type":"box","text":"develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to Board","page_number":24,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"93dd28b6-f527-42dc-849a-095002190bf2","block_type":"box","text":"policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of ethics as","page_number":24,"box":{"x":70,"y":513,"width":835,"height":11}},{"id":"882841b9-d21c-4dce-aec8-fbff8a4a2ab4","block_type":"box","text":"they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from time to","page_number":24,"box":{"x":68,"y":528,"width":815,"height":12}},{"id":"d8bb9871-9ef7-4e22-a174-3709e41c75f8","block_type":"box","text":"time be delegated by the Board to the Governance Committee. The Governance Committee may consider nominations","page_number":24,"box":{"x":68,"y":544,"width":841,"height":11}},{"id":"a1a43cee-8a51-4ca4-bb33-793b2857f2b5","block_type":"box","text":"for Trustees made by each Fund’s shareholders as it deems appropriate. Fund shareholders who wish to recommend","page_number":24,"box":{"x":68,"y":559,"width":835,"height":11}},{"id":"04447fe7-a69f-49b0-9991-dde6b9360013","block_type":"box","text":"a nominee should send nominations to the Secretary of the Trust that include biographical information and set forth","page_number":24,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"117f37ce-ce12-4d90-8196-5a78783290f7","block_type":"box","text":"the qualifications of the proposed nominee. The Board has adopted a written charter for the Governance Committee.","page_number":24,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"bb180f58-47b7-4b45-a5d2-aa7a86b61880","block_type":"box","text":"During the fiscal year ended December 31, 2025, the Governance Committee met eleven times.","page_number":24,"box":{"x":70,"y":604,"width":684,"height":11}},{"id":"502adf46-a4e4-41a8-9217-31722f37b6ce","block_type":"box","text":"Compliance Committee.","page_number":24,"box":{"x":102,"y":627,"width":168,"height":11}},{"id":"f162ce8d-739a-4094-9528-ee25baec2f28","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":24,"box":{"x":276,"y":627,"width":629,"height":11}},{"id":"7f61aef2-0336-4df1-9c73-1d7729ab1b84","block_type":"box","text":"Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of whom are","page_number":24,"box":{"x":68,"y":642,"width":789,"height":11}},{"id":"8fc14023-ebe5-49dd-ba4a-3289fd238cfa","block_type":"box","text":"Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its responsibility to","page_number":24,"box":{"x":70,"y":657,"width":812,"height":11}},{"id":"f3a0eb1f-a993-46a1-b3a3-3df80d72356e","block_type":"box","text":"oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of BFA and any","page_number":24,"box":{"x":69,"y":672,"width":809,"height":11}},{"id":"fff9015f-8445-4296-900b-4c65437248eb","block_type":"box","text":"sub-adviser and the Trust’s third-party service providers. The Compliance Committee’s responsibilities include,","page_number":24,"box":{"x":69,"y":687,"width":789,"height":11}},{"id":"229cf15a-cb45-4be5-aa2d-fa6cbb072b3a","block_type":"box","text":"without limitation, to (1) oversee the compliance policies and procedures of the Trust and its service providers and","page_number":24,"box":{"x":68,"y":702,"width":819,"height":11}},{"id":"f6ced9ce-ba60-47d6-ab82-f7438213699a","block_type":"box","text":"recommend changes or additions to such policies and procedures; (2) review information on and, where appropriate,","page_number":24,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"a508a05f-bc9f-4433-8f61-0b0edfb4d9f1","block_type":"box","text":"recommend policies concerning the Trust’s compliance with applicable law; (3) review reports from, oversee the","page_number":24,"box":{"x":69,"y":732,"width":798,"height":12}},{"id":"8ccddcf3-294b-485c-9828-5f463c289506","block_type":"box","text":"annual performance review of, and make certain recommendations and determinations regarding the Trust’s Chief","page_number":24,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"2970011c-76ee-484b-aefb-69c0edfdc54c","block_type":"box","text":"Compliance Officer (the “CCO”), including determining the amount and structure of the CCO’s compensation and","page_number":24,"box":{"x":69,"y":763,"width":803,"height":11}},{"id":"69acdea5-e9c2-4ab9-b775-939cf3db6e29","block_type":"box","text":"recommending such amount and structure to the full Board for approval and ratification; and (4) undertake such","page_number":24,"box":{"x":69,"y":778,"width":799,"height":11}},{"id":"2c89cbd0-5922-4f95-9837-8013dd9b9cdd","block_type":"box","text":"other duties and responsibilities as may from time to time be delegated by the Board to the Compliance Committee.","page_number":24,"box":{"x":69,"y":793,"width":828,"height":11}},{"id":"f2fd26a6-5058-407e-a2b5-64dc985068af","block_type":"box","text":"The Board has adopted a written charter for the Compliance Committee. During the fiscal year ended","page_number":24,"box":{"x":68,"y":808,"width":720,"height":11}},{"id":"03935133-e724-46d0-9d0d-de555e1c7388","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":24,"box":{"x":70,"y":823,"width":460,"height":11}},{"id":"6856e6c1-1f56-424a-9564-ac02032f16bf","block_type":"box","text":"Per formance Oversight Committee.","page_number":24,"box":{"x":102,"y":846,"width":248,"height":11}},{"id":"08bf90c5-3236-4bfd-9232-c44f99f83026","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":24,"box":{"x":356,"y":846,"width":531,"height":11}},{"id":"fd69e447-3fea-4408-842b-c42c57f9a6a7","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton and Neil","page_number":24,"box":{"x":69,"y":861,"width":837,"height":11}},{"id":"7e4e8d9c-1bc1-495e-8a5e-b4e44dcc5be1","block_type":"box","text":"A. Cotty, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is to assist the","page_number":24,"box":{"x":68,"y":876,"width":808,"height":11}},{"id":"def7e732-ce0e-4705-b233-d276f5106c3c","block_type":"box","text":"Board in fulfilling its responsibility to oversee each Fund’s investment performance relative to its agreed-upon","page_number":24,"box":{"x":70,"y":891,"width":780,"height":12}},{"id":"36a4cc33-ab50-44fe-93a3-7db66219a2e0","block_type":"box","text":"performance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":24,"box":{"x":70,"y":906,"width":775,"height":12}},{"id":"fcb3df7a-e521-402b-8ff1-ff5d2f4d9fe5","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"69aac7d2-89c7-48e1-90ba-819a3d17fc69","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f5c69ec7-cfbf-4d89-b9ef-4884c4f5bebf","block_type":"box","text":"agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":25,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"e8b5832c-e9f9-4b4d-bafa-40f6bec2b30b","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, each Fund’s investment objective,","page_number":25,"box":{"x":70,"y":60,"width":781,"height":11}},{"id":"f1c8bd0d-3cc3-4eac-99b5-1af06be6597f","block_type":"box","text":"policies and practices; (2) review information on each Fund’s investment performance; (3) review information on","page_number":25,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"96911c42-81bf-4e53-abac-08637c0f3a48","block_type":"box","text":"appropriate benchmarks and competitive universes and unusual or exceptional investment matters; (4) review","page_number":25,"box":{"x":69,"y":90,"width":784,"height":11}},{"id":"7d25d577-2f11-4ba7-8b52-be551cb4c7c9","block_type":"box","text":"personnel and other resources devoted to management of each Fund and evaluate the nature and quality of","page_number":25,"box":{"x":70,"y":105,"width":769,"height":11}},{"id":"ea4c1261-e26a-44b4-ab50-82bb890d05d1","block_type":"box","text":"information furnished to the Performance Oversight Committee; (5) recommend any required action regarding","page_number":25,"box":{"x":70,"y":120,"width":779,"height":12}},{"id":"cffb2659-2e70-46cd-ba55-5982ea7c9a60","block_type":"box","text":"changes in fundamental and non-fundamental investment policies and restrictions, fund mergers or liquidations;","page_number":25,"box":{"x":69,"y":135,"width":799,"height":12}},{"id":"436cdb74-2c4d-4ad7-9824-306ca20f1ca1","block_type":"box","text":"(6) request and review information on the nature, extent and quality of services provided to the shareholders;","page_number":25,"box":{"x":69,"y":150,"width":780,"height":12}},{"id":"03e20df5-fd2d-446d-ac09-ca4e70f07083","block_type":"box","text":"(7) make recommendations to the Board concerning the approval or renewal of investment advisory agreements; and","page_number":25,"box":{"x":69,"y":166,"width":835,"height":11}},{"id":"6974cbef-e32c-4a23-bee9-38f41ca4f003","block_type":"box","text":"(8) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":25,"box":{"x":69,"y":181,"width":794,"height":11}},{"id":"a9ec4efa-035b-49ec-aa41-d8c4981bae35","block_type":"box","text":"Performance Oversight Committee. The Board has adopted a written charter for the Performance Oversight","page_number":25,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"855ce42d-b471-431c-bbd3-83e10a261118","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Performance Oversight Committee met five times.","page_number":25,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"10d4166d-b45b-4a89-a49f-a5dfbc8c3e07","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":25,"box":{"x":101,"y":234,"width":186,"height":11}},{"id":"5eb2565d-2198-45d5-af30-fb65c9d55126","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":234,"width":598,"height":11}},{"id":"99a4fea5-813a-428d-969d-aa1ef71048f5","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":25,"box":{"x":70,"y":249,"width":817,"height":11}},{"id":"fa309b68-978b-4447-8b1d-ae7d80a6c00e","block_type":"box","text":"serves as an interested Trustee. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":25,"box":{"x":69,"y":264,"width":795,"height":11}},{"id":"edf35ed2-45d8-4f88-a524-83e330679bb3","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":279,"width":788,"height":11}},{"id":"039921f7-d7ce-490b-9cf4-dbebf874cac2","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":294,"width":813,"height":11}},{"id":"b54147a4-e5c1-4a9b-b224-4cb5e64d3abf","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":25,"box":{"x":68,"y":309,"width":816,"height":11}},{"id":"78b28cbf-e857-45db-a12f-c52ba9a120ff","block_type":"box","text":"the fiscal year ended December 31, 2025, the Ad Hoc Topics Committee did not meet.","page_number":25,"box":{"x":68,"y":324,"width":618,"height":11}},{"id":"47582eb3-1afd-42c4-8c7a-df87eb371fa8","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":25,"box":{"x":101,"y":347,"width":771,"height":11}},{"id":"612070e8-267a-4e56-8a2a-48fd5af3c628","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":25,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"b19eeaa0-f002-4ce5-b548-2a52754998ba","block_type":"box","text":"of Policy”). The Board believes that each Independent Trustee satisfied, at the time he or she was initially elected or","page_number":25,"box":{"x":69,"y":377,"width":830,"height":11}},{"id":"f274b692-6c01-4e94-adc9-f45c405ec4c1","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":25,"box":{"x":69,"y":392,"width":825,"height":12}},{"id":"5a8379b5-d706-46b4-80ed-ed475283df7a","block_type":"box","text":"in determining that a particular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":25,"box":{"x":70,"y":407,"width":807,"height":12}},{"id":"4a5364dd-86d5-49cd-b60d-31b1f93d99f8","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":25,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"6ae90c14-6809-4de0-aade-aa1e9d2684e4","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":25,"box":{"x":69,"y":438,"width":805,"height":11}},{"id":"8a16bae1-7edf-410c-8729-7d15e3eb441e","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":25,"box":{"x":68,"y":453,"width":794,"height":11}},{"id":"84ea58ea-89ea-48b1-9879-d27eff69a8df","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":25,"box":{"x":68,"y":468,"width":829,"height":11}},{"id":"2cdf5782-318c-4b96-bffa-d098838f125e","block_type":"box","text":"discuss information provided to them, to interact effectively with each Fund’s investment adviser, sub-advisers, other","page_number":25,"box":{"x":69,"y":483,"width":835,"height":11}},{"id":"0c8069b5-fd1a-4141-bff1-a92e58113003","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":25,"box":{"x":69,"y":498,"width":771,"height":11}},{"id":"1b7f64aa-023d-4d35-96f1-e89dd8b6291a","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":25,"box":{"x":69,"y":513,"width":473,"height":12}},{"id":"d1ca1e46-43d1-46d9-aa89-246e6057c227","block_type":"box","text":"Each Trustee’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":25,"box":{"x":102,"y":536,"width":792,"height":11}},{"id":"1a4d1848-7a17-48d1-8d9a-b1cd80c72f93","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":25,"box":{"x":69,"y":551,"width":807,"height":11}},{"id":"f8ffac9d-7447-4a72-b8f4-8e450a9ebe88","block_type":"box","text":"board member of the Trust and the other funds in the BlackRock Fund Complexes (and any predecessor funds), other","page_number":25,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"2977f69d-4d7c-43a9-a154-030f56dc7198","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":25,"box":{"x":70,"y":581,"width":759,"height":12}},{"id":"cf3706dd-e590-4203-bb22-fae69f6f3daa","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":25,"box":{"x":70,"y":596,"width":685,"height":12}},{"id":"ed3276c2-bc96-4ca3-a357-d58f342c7dfb","block_type":"box","text":"ad hoc","page_number":25,"box":{"x":762,"y":597,"width":47,"height":8}},{"id":"0c88d9a5-96da-4a62-a91c-551e7f93fcba","block_type":"box","text":"committees","page_number":25,"box":{"x":814,"y":597,"width":82,"height":8}},{"id":"71b6d0bd-e8e0-4b48-8599-3219869e4586","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":25,"box":{"x":68,"y":612,"width":395,"height":11}},{"id":"428acdcb-0078-4df0-8aba-13346f6384ef","block_type":"box","text":"Trustees Elect.","page_number":25,"box":{"x":103,"y":634,"width":103,"height":9}},{"id":"dbac5e52-1be6-4108-9180-39046c852e85","block_type":"box","text":"Jeffrey Jarczyk and Marc D. Stern have been appointed as Trustees of the Trust effective","page_number":25,"box":{"x":213,"y":634,"width":634,"height":11}},{"id":"253ff9ea-0713-47f3-9981-e44830db9c66","block_type":"box","text":"July 1, 2026 (each, a “Trustee Elect”). Each Trustee Elect is expected to qualify as an Independent Trustee at the","page_number":25,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"f131891b-9d14-43a8-9245-ceb6ac9c0510","block_type":"box","text":"time of his service. Each Trustee Elect has been retained as a consultant to the Independent Trustees to assist the","page_number":25,"box":{"x":68,"y":664,"width":826,"height":11}},{"id":"668a19a2-48f9-4026-9fad-55ee002fd1d2","block_type":"box","text":"Independent Trustees in the performance of their duties to the Trust and is expected to serve in that capacity until","page_number":25,"box":{"x":70,"y":680,"width":816,"height":11}},{"id":"9dd9b195-937e-4450-ad77-99c2b41b96b8","block_type":"box","text":"July 1, 2026.","page_number":25,"box":{"x":69,"y":695,"width":92,"height":11}},{"id":"4e7e31b0-76b8-48d9-85e4-b4d6d9871de5","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"d2494240-ebcf-4397-be50-69d0a3525172","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"60b86609-83b7-4eb2-8971-e6479816dc2b","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":26,"box":{"x":101,"y":45,"width":751,"height":11}},{"id":"7b8814eb-ef0e-4565-83f0-0e4d2b12701b","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":26,"box":{"x":69,"y":60,"width":492,"height":11}},{"id":"1c0727fe-a99a-4ee4-ae01-83a30b5e4a52","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":26,"box":{"x":68,"y":88,"width":409,"height":9}},{"id":"91cb1349-f626-4a6d-8236-8d223b864894","block_type":"box","text":"Independent Trustees","page_number":26,"box":{"x":70,"y":105,"width":154,"height":10}},{"id":"1d307e18-14d5-4831-a7fd-ed6d29574872","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":120,"width":781,"height":11}},{"id":"54ecbbca-6cb9-4310-a71e-25ad41d99b9f","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":26,"box":{"x":265,"y":135,"width":604,"height":11}},{"id":"f58f776f-0e69-45ce-8441-a70ef384a8b6","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":150,"width":623,"height":11}},{"id":"42ed8912-7bb4-48e8-ac8e-f8cd3f6fe64d","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":165,"width":637,"height":11}},{"id":"f514ab5f-13a1-413e-a5e3-ae35bccdbe78","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":180,"width":631,"height":11}},{"id":"0ae74c4d-d437-4d4e-b823-367f01519646","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":26,"box":{"x":264,"y":195,"width":626,"height":11}},{"id":"504b58ec-2cbe-4128-8407-c2024649c57f","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":210,"width":639,"height":11}},{"id":"3e438186-c5af-47ac-96ed-02c1442d7459","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":26,"box":{"x":264,"y":226,"width":637,"height":11}},{"id":"45f63afc-a769-40cc-916e-f9e20fdafe54","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":26,"box":{"x":265,"y":241,"width":586,"height":11}},{"id":"04de3625-312e-49a1-a304-c074464b7d87","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":256,"width":640,"height":11}},{"id":"51588581-2cc1-4e73-9c5d-b2b7c957f710","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":26,"box":{"x":265,"y":271,"width":389,"height":11}},{"id":"8d2322dc-b730-4824-9efb-c36c6809cd8d","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":26,"box":{"x":69,"y":293,"width":806,"height":12}},{"id":"6305d308-773d-4131-a122-3798b200ed23","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":26,"box":{"x":265,"y":309,"width":604,"height":11}},{"id":"8b13cf2a-2e6e-4af7-914b-1b15605dbcb1","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":26,"box":{"x":265,"y":324,"width":632,"height":11}},{"id":"83c1acdc-9a8d-4ebb-84b8-f3a39991c136","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":339,"width":562,"height":9}},{"id":"91e5f08e-bb7d-4d9f-934f-5fe5c1ea7a6c","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":26,"box":{"x":265,"y":354,"width":616,"height":10}},{"id":"541c87e4-3711-4da9-a420-1f8cbf0d6c9b","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":26,"box":{"x":264,"y":369,"width":591,"height":11}},{"id":"04f8e54d-0ba6-4a8f-95c2-826bf6b109f9","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":384,"width":641,"height":11}},{"id":"5ba85ed8-b981-4e1a-9218-9844da9dbd8c","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":399,"width":638,"height":12}},{"id":"e030f45f-a2b7-4d74-9147-232143c4da99","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":414,"width":584,"height":12}},{"id":"5deb3e20-6526-4471-a328-cb08bba3d4ad","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":26,"box":{"x":265,"y":429,"width":630,"height":12}},{"id":"01bab0ad-4309-4c1b-accd-89fb482cae50","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":26,"box":{"x":265,"y":445,"width":634,"height":11}},{"id":"21862e86-46ba-475e-a638-126ed5e43461","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":26,"box":{"x":265,"y":460,"width":599,"height":11}},{"id":"aaf30a47-7288-4379-940c-19bfe2194d05","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":475,"width":407,"height":11}},{"id":"56c7abae-fd56-4534-a4f6-976b034dfc1b","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":498,"width":837,"height":11}},{"id":"6956ef96-877e-4530-a669-06376e67f487","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":513,"width":638,"height":11}},{"id":"1294ec1d-cc65-4bfa-9e69-1fa7cf96d82b","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":528,"width":642,"height":11}},{"id":"c3d5eb95-17e4-4760-832b-fd0ea8affd9d","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":26,"box":{"x":265,"y":542,"width":601,"height":12}},{"id":"6b3a8d80-1e6e-4526-be3c-247867a088f2","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":26,"box":{"x":265,"y":558,"width":595,"height":11}},{"id":"cd6c327e-3191-4c4f-822b-28e6500bf118","block_type":"box","text":"perspective on the markets and the economy.","page_number":26,"box":{"x":265,"y":573,"width":323,"height":11}},{"id":"3cf938f8-ac19-4068-a97f-c19307976023","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":26,"box":{"x":70,"y":596,"width":798,"height":11}},{"id":"f9baf7f3-e705-4f28-aba2-c5582d745116","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":26,"box":{"x":265,"y":611,"width":631,"height":11}},{"id":"3382d471-fe5c-488b-a8d1-62021ea4bc25","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":26,"box":{"x":265,"y":626,"width":633,"height":11}},{"id":"529304a7-30ec-45be-a040-816d5dbaeb40","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":26,"box":{"x":265,"y":641,"width":628,"height":11}},{"id":"491bcdec-c09d-49bb-8eb5-0fe26cf1ee64","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":26,"box":{"x":265,"y":656,"width":596,"height":12}},{"id":"16d2e6fb-4b1b-4ae0-adc1-0a8e0b7a4cfe","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":26,"box":{"x":265,"y":671,"width":616,"height":12}},{"id":"e34d0ed6-80b4-48b5-b374-76161ebf5721","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":26,"box":{"x":264,"y":686,"width":368,"height":11}},{"id":"84b6da91-6f88-432d-9eff-de7a3ffb0dee","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":26,"box":{"x":70,"y":709,"width":806,"height":11}},{"id":"ed22bddb-0842-4d69-8639-e1a32a47887c","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":26,"box":{"x":264,"y":724,"width":584,"height":12}},{"id":"791e7c37-f2a1-4682-b475-61967e752a22","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":26,"box":{"x":265,"y":740,"width":622,"height":11}},{"id":"c1832b02-ba26-45fe-9084-24b20d028e54","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":26,"box":{"x":265,"y":755,"width":638,"height":11}},{"id":"e0e58be4-69a7-4c84-aece-b41dde3a2977","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":26,"box":{"x":265,"y":770,"width":570,"height":11}},{"id":"dbc6532e-c8f4-45ff-b4e8-5be99cab89a0","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":26,"box":{"x":265,"y":785,"width":642,"height":11}},{"id":"8db774ed-ba60-427d-98a0-0f0dd373f666","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":26,"box":{"x":265,"y":800,"width":626,"height":11}},{"id":"69ff1967-4b77-4ce5-89bb-c1422efb4a52","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":26,"box":{"x":265,"y":815,"width":630,"height":11}},{"id":"efb9ceba-2f3c-4a5b-a897-a43ee3df8567","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":26,"box":{"x":265,"y":830,"width":602,"height":11}},{"id":"8292c390-6ecf-4c3f-b341-4d0f33586e7e","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":26,"box":{"x":264,"y":845,"width":643,"height":12}},{"id":"6ac6c3e8-22fe-4d37-b95e-958fac9e208f","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":26,"box":{"x":264,"y":860,"width":639,"height":12}},{"id":"e574923d-8727-41db-9ebe-d38702748c49","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":26,"box":{"x":264,"y":875,"width":641,"height":11}},{"id":"10afcba0-a9e5-424c-b06f-ecb5f1cdf78d","block_type":"box","text":"applicable Commission rules.","page_number":26,"box":{"x":265,"y":891,"width":208,"height":11}},{"id":"a7b67eda-1ff9-44ab-86df-8a52baaffead","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"312521c6-71f0-47d4-b84d-fd9f0a18e856","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"003f6f5f-1c67-4614-9b56-41b47694b9db","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":27,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"f70aec31-177f-42ff-a994-a2c998e59576","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":65,"width":769,"height":12}},{"id":"960b3ba2-cfe3-4d8e-bdc5-125d5ca62b53","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":27,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"ba5713e6-fdcf-4439-a7ca-16a554283077","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":27,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"def016bc-e7b7-4a03-b9db-574e9e27f4b4","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":111,"width":641,"height":11}},{"id":"a21073a9-3268-4821-a732-baca4adef899","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":27,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"ab219cef-53b7-4904-91ab-481e4b15e9c6","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":27,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"e55818b0-7a26-4606-b5b5-6b8fce1be95b","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":27,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"11d0e724-6f5d-496c-b5a8-118b8e250910","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":171,"width":628,"height":11}},{"id":"7cff3107-7ed8-4514-bcc7-878211d63c63","block_type":"box","text":"articles and books on these topics.","page_number":27,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"955137a3-d545-424b-b289-497ae9877602","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":209,"width":764,"height":11}},{"id":"ec9597ba-f8de-45f7-beac-ad8247e66dcb","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":27,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"27485c4e-d591-421c-8af7-1d70409caad0","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":27,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"9a537085-91ce-45aa-a8f9-a11682f465c9","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":254,"width":603,"height":12}},{"id":"241c9042-6f13-4220-91bb-590bb243c159","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":27,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"20dfe2cf-13b4-436e-aab8-0f9b2315dd9f","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":27,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"2db9b961-777e-474a-97e9-63951c2061e2","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":27,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"eb264308-f16a-4db6-800c-27110554d292","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":27,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"8fa3bfea-ee2f-4fcd-88cc-dfb218101c4b","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":27,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"927b2713-7c03-4664-84dd-d80d1d7848eb","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":27,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"80c1a856-cc9c-4fd1-b977-ca05b0f58aa7","block_type":"box","text":"exchanges, and other industry firms. 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More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":27,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"2ab9dfca-2cc0-4345-8651-61e4318690a6","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":27,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"1f74b100-ebfa-4887-b64a-a8590e4faafb","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":27,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"911c9a29-ecb9-4f38-8044-74b768b60337","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":27,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"d699659e-9fd5-4b22-8dd7-f5ac57f95e46","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":27,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"9639bbe3-2cda-4c22-bb70-845fe9aa9fe1","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":27,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"081af81c-2129-48c5-906f-4281c017579d","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":27,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"73fcd5dc-a3d5-4dd2-9ca9-94b24f488d8d","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":27,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"e72914d5-49f2-4c8e-a433-cbb7777195ae","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":27,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"94aa7d76-f246-47cf-92e1-bf947d26957e","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":27,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"7d7f6b88-7574-4700-a2ac-739a598ab937","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":27,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"970bf7d5-e060-4d96-88db-0c36d1a7408a","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":27,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"df4aaebf-530f-4129-bbb6-c4882c8312cc","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":27,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"02951ed6-d588-4ecf-8205-f9e4ba49ab55","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":27,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"4a515bc1-522d-42dd-8ff6-af15be64ff58","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":27,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"fd3b72ee-af45-4b37-a3cb-a2284a1d1c73","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":27,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"788bd893-3ce8-487a-9372-062b4ccfe39f","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":27,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"53590461-6da3-4629-a775-e3e4e5184e44","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":27,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"a822aef5-5108-4212-b56b-64c120f1d0f1","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":27,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"ae713a7a-8658-45ec-afae-8834327654b5","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":27,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"a564a9e3-a146-4df8-957a-f010b4372c45","block_type":"box","text":"various private and non-profit boards.","page_number":27,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"fdb58cf7-e8ff-487c-a9f3-e488f4bba10a","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":27,"box":{"x":70,"y":746,"width":807,"height":11}},{"id":"8de6843f-c945-48e9-8701-47f00fcc70dc","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":27,"box":{"x":264,"y":761,"width":641,"height":11}},{"id":"acdab573-d2d5-4e20-b51b-0d07ccf4c83b","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":27,"box":{"x":265,"y":776,"width":618,"height":11}},{"id":"1e911115-06a9-4731-a16f-1e4a4bf07566","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":27,"box":{"x":265,"y":791,"width":594,"height":11}},{"id":"edc56a3c-82db-420a-b1c3-087278bcba27","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":27,"box":{"x":265,"y":806,"width":639,"height":12}},{"id":"c4c92b4d-61c2-4fcb-aa39-3a7e72f70dcb","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":27,"box":{"x":265,"y":821,"width":575,"height":11}},{"id":"c73ad187-54b6-4d04-a7a4-2b30dd774930","block_type":"box","text":"Commission rules.","page_number":27,"box":{"x":265,"y":837,"width":131,"height":8}},{"id":"c8cb7373-0980-4b57-adfc-58bc5036f46d","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c8ef35a5-4545-463b-bc46-fbdd8ec42846","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"389fc919-6862-4eff-8979-92e93c9c89c5","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"dbac6afb-0f76-4a51-93f8-e442e88aed50","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":28,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"f21e5c2b-ac81-423a-a18d-855f365ad3e5","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":28,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"682e6e41-9c26-420d-90a9-f6cecaa24c78","block_type":"box","text":"Management, LP from 1998 to 2015, an investment manager that specialized in long/","page_number":28,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"56f02703-b063-49fd-93c9-5df3b3c08104","block_type":"box","text":"short non-U.S. equity investments, and was an owner and General Partner of Neon Liberty","page_number":28,"box":{"x":265,"y":111,"width":643,"height":11}},{"id":"0e2ba910-c065-4ce2-9421-e918bdede6f7","block_type":"box","text":"Capital Management, LLC from 2003 to 2023, a firm focusing on long/short equities in","page_number":28,"box":{"x":265,"y":126,"width":624,"height":11}},{"id":"ca196f05-2505-4642-a8ec-488233efd1ef","block_type":"box","text":"global emerging and frontier markets. These positions have provided her with insight and","page_number":28,"box":{"x":264,"y":141,"width":634,"height":11}},{"id":"1bc1fcb5-bd10-4c3b-931c-d5cfa2f5cd8e","block_type":"box","text":"perspective on the markets and the economy. Ms. Walton has been determined by the","page_number":28,"box":{"x":265,"y":156,"width":614,"height":11}},{"id":"db15b7e8-c77e-4c37-92bd-66b60ff3caef","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":28,"box":{"x":264,"y":171,"width":641,"height":11}},{"id":"ab77070c-4b6f-4188-90be-7c64545fea2e","block_type":"box","text":"applicable Commission rules.","page_number":28,"box":{"x":265,"y":186,"width":208,"height":11}},{"id":"1981d88a-92c6-487d-9df8-2890f642c709","block_type":"box","text":"Trustees Elect","page_number":28,"box":{"x":70,"y":209,"width":101,"height":9}},{"id":"34e6d4e0-7560-4f09-a17c-41adde40a656","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":28,"box":{"x":69,"y":224,"width":777,"height":11}},{"id":"8ccae473-95fa-4e9a-aa31-712e13f1b8af","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":28,"box":{"x":265,"y":239,"width":613,"height":12}},{"id":"d80393a5-95e8-4428-91ce-eaca1630caa1","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":28,"box":{"x":265,"y":254,"width":563,"height":12}},{"id":"48d4c597-0fd6-4d03-9404-bb7b253b91cc","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":28,"box":{"x":265,"y":270,"width":607,"height":11}},{"id":"edd3290a-8bf4-494f-b2bc-a416baf4e84c","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":28,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"328535ef-10df-4cb2-a97a-198fd15ed38f","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":28,"box":{"x":265,"y":300,"width":626,"height":11}},{"id":"abcffcc0-c188-4324-8d43-cf23978a675a","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":28,"box":{"x":265,"y":315,"width":563,"height":11}},{"id":"6d2fd4d5-7f90-4177-ae37-23acd610a678","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":338,"width":833,"height":11}},{"id":"16099aed-f7d3-4b21-a69e-3a73649a2755","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":353,"width":638,"height":11}},{"id":"1fdc73fb-9029-4ae0-9171-a99efda1a64b","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":368,"width":608,"height":11}},{"id":"ec2529f7-24fe-40d9-bd89-56a5fd8028b3","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":383,"width":645,"height":10}},{"id":"92a76887-72b6-4465-99d5-fd6f96313824","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":398,"width":639,"height":9}},{"id":"b6246c41-98aa-41f6-abb6-131099143666","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":28,"box":{"x":264,"y":413,"width":573,"height":11}},{"id":"7c65b283-0f9a-4add-b3b2-f9bc871893e8","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":28,"box":{"x":265,"y":428,"width":625,"height":12}},{"id":"307a8e7d-6534-4517-964d-f02a111b0853","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":28,"box":{"x":265,"y":443,"width":610,"height":12}},{"id":"f2439f3d-3c86-4852-8659-d96bf2bcff45","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":28,"box":{"x":265,"y":459,"width":642,"height":11}},{"id":"6db77674-444e-4c82-9df7-0b135e7968a6","block_type":"box","text":"and fiduciary governance.","page_number":28,"box":{"x":265,"y":474,"width":181,"height":11}},{"id":"f56ff074-8f5f-473d-862a-4482fa319274","block_type":"box","text":"Interested Trustees","page_number":28,"box":{"x":70,"y":497,"width":138,"height":8}},{"id":"442d84ee-9b4c-4f97-af23-a7bb5ffe180a","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":28,"box":{"x":70,"y":511,"width":823,"height":12}},{"id":"5496361f-70b3-433c-83c2-63f060015649","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":28,"box":{"x":264,"y":526,"width":593,"height":12}},{"id":"71f803c6-c5a3-455a-b8d6-76b8303dda63","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":28,"box":{"x":265,"y":542,"width":629,"height":11}},{"id":"f21aab1b-ec3e-43b7-ad53-aa674380ed6a","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":28,"box":{"x":265,"y":557,"width":639,"height":11}},{"id":"7da15d29-396e-42db-8e7a-259077ce93f9","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":28,"box":{"x":265,"y":572,"width":617,"height":11}},{"id":"2ecb5614-10ef-440d-a1c6-f50ddd55f7a4","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":28,"box":{"x":264,"y":587,"width":634,"height":11}},{"id":"babf3cfe-4e2c-4ba7-a82c-a128c5097435","block_type":"box","text":"a Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":28,"box":{"x":265,"y":602,"width":637,"height":11}},{"id":"3ad0adb9-85d7-43a3-9074-192b329b64fe","block_type":"box","text":"and iShares","page_number":28,"box":{"x":265,"y":617,"width":84,"height":9}},{"id":"c138ae03-1e68-455b-99ee-ecb32a8dbd0b","block_type":"box","text":"®","page_number":28,"box":{"x":350,"y":618,"width":6,"height":4}},{"id":"67750e96-ee07-4ae5-833c-e6d012310f52","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":28,"box":{"x":362,"y":617,"width":478,"height":11}},{"id":"52530b66-1968-4dc9-841d-023a2842f745","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":28,"box":{"x":265,"y":633,"width":585,"height":11}},{"id":"c20676bb-92c9-48ee-b76a-1c26d4221f0a","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":28,"box":{"x":265,"y":648,"width":620,"height":11}},{"id":"dd6227ce-944a-4aa4-b95a-d42d33e26f62","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":28,"box":{"x":265,"y":663,"width":578,"height":11}},{"id":"eddd369a-f125-49b6-b3bb-cee2d466d813","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Managing Director of BlackRock, Inc. since 2009, as","page_number":28,"box":{"x":69,"y":685,"width":821,"height":12}},{"id":"416a3919-e8f1-4acf-a3ad-8b6dc192464a","block_type":"box","text":"the Head of BlackRock Global Accounting and Product Services since 2009, and as","page_number":28,"box":{"x":264,"y":700,"width":595,"height":12}},{"id":"fa6d7795-aa7f-4a42-8a0f-caf66b972376","block_type":"box","text":"President and Chief Executive Officer of the BlackRock-advised Funds provides him with a","page_number":28,"box":{"x":265,"y":715,"width":637,"height":11}},{"id":"8615fe4f-9565-4ae1-847d-1a2a67e766c9","block_type":"box","text":"strong understanding of the BlackRock-advised Funds, their operations, and the business","page_number":28,"box":{"x":265,"y":731,"width":636,"height":11}},{"id":"bf65ab0f-3faa-4541-a63f-fc269ab45f59","block_type":"box","text":"and regulatory issues facing the BlackRock-advised Funds. 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Urish. .","page_number":33,"box":{"x":79,"y":384,"width":132,"height":9}},{"id":"972afeed-53f4-4d59-a824-a564bc1b389e","block_type":"box","text":"..........................","page_number":33,"box":{"x":217,"y":392,"width":206,"height":1}},{"id":"8cd19c8e-45b8-4aac-b845-3db99aa61a0f","block_type":"box","text":"None None Over $100,000","page_number":33,"box":{"x":508,"y":384,"width":386,"height":11}},{"id":"af0f2c6e-d60e-47f7-8486-a5822e03939e","block_type":"box","text":"Claire A. Walton . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":79,"y":399,"width":344,"height":9}},{"id":"24216255-7c47-43b2-b5eb-48d9896727f9","block_type":"box","text":"None None Over $100,000","page_number":33,"box":{"x":508,"y":399,"width":386,"height":11}},{"id":"c8ed3bdf-2c61-47e4-8055-bade486ec3b8","block_type":"box","text":"Interested Trustees","page_number":33,"box":{"x":70,"y":415,"width":138,"height":8}},{"id":"9281da10-9b21-4e92-9fbc-ee06580c8927","block_type":"box","text":"Robert Fairbairn . .","page_number":33,"box":{"x":79,"y":430,"width":132,"height":9}},{"id":"1aa257d2-0070-4ce1-ab6d-f75242f21332","block_type":"box","text":"..........................","page_number":33,"box":{"x":217,"y":437,"width":206,"height":1}},{"id":"acd47c3a-f5a4-47d6-bb7e-8dab636117cf","block_type":"box","text":"None None Over $100,000","page_number":33,"box":{"x":508,"y":429,"width":386,"height":11}},{"id":"37e0fea1-b5ff-4000-b41f-1eceb06bb395","block_type":"box","text":"John M. Perlowski","page_number":33,"box":{"x":78,"y":445,"width":127,"height":9}},{"id":"a5850d7b-cb89-4de6-9328-2e6a0a8caceb","block_type":"box","text":"...........................","page_number":33,"box":{"x":209,"y":452,"width":214,"height":2}},{"id":"188fb4b8-d422-47a3-bf9d-1697e534d1f0","block_type":"box","text":"None None Over $100,000","page_number":33,"box":{"x":508,"y":444,"width":386,"height":11}},{"id":"4980486f-7a69-4837-8d8f-413ec81b9aae","block_type":"box","text":"As of April 2, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially owned an","page_number":33,"box":{"x":101,"y":469,"width":792,"height":11}},{"id":"dd84657d-c7cf-4ec4-b1e3-291794e7897b","block_type":"box","text":"aggregate of less than 1% of any class of the outstanding shares of each Fund. As of December 31, 2025, none of","page_number":33,"box":{"x":69,"y":484,"width":822,"height":11}},{"id":"5fe89945-dd21-415f-b3c3-0a7a1e641c75","block_type":"box","text":"the Independent Trustees of the Trust or their immediate family members owned beneficially or of record any","page_number":33,"box":{"x":68,"y":499,"width":776,"height":11}},{"id":"e391d435-a873-4bf7-a67f-708fed4230bb","block_type":"box","text":"securities of each Fund’s investment adviser, principal underwriter, or any person directly or indirectly controlling,","page_number":33,"box":{"x":69,"y":514,"width":805,"height":11}},{"id":"8d353b6e-1c1b-4d9d-9ea1-2cc5a9f4f52d","block_type":"box","text":"controlled by, or under common control with such entities.","page_number":33,"box":{"x":69,"y":529,"width":412,"height":11}},{"id":"71ff1677-a562-4433-a774-ef69379c236b","block_type":"box","text":"Compensation of Trustees","page_number":33,"box":{"x":69,"y":559,"width":190,"height":11}},{"id":"ebfdec50-8d67-47f9-9d5f-495e2735029b","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":33,"box":{"x":102,"y":581,"width":791,"height":12}},{"id":"6b06299b-d754-481b-815f-453fcd3bd18d","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":33,"box":{"x":68,"y":597,"width":810,"height":11}},{"id":"c429d9df-ab7a-4e85-bc8c-cd3ace7f463b","block_type":"box","text":"including the Trust and MIP, and a $20,000 board meeting fee to be paid for each in-person board meeting attended","page_number":33,"box":{"x":70,"y":612,"width":828,"height":11}},{"id":"206cc7e2-aa16-4717-9203-7dd26681d11d","block_type":"box","text":"(and may receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings","page_number":33,"box":{"x":69,"y":627,"width":811,"height":12}},{"id":"461c57a1-8d2d-4d45-9261-de27f0c7a902","block_type":"box","text":"held in a calendar year (compensation for meetings in excess of this number to be determined on a case-by-case","page_number":33,"box":{"x":69,"y":642,"width":805,"height":12}},{"id":"7daee120-545c-4652-98ca-660c52d9a71b","block_type":"box","text":"basis), together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":33,"box":{"x":69,"y":658,"width":838,"height":11}},{"id":"0f00d4bf-5eff-48e4-9f6e-bfe0232f5b56","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":33,"box":{"x":69,"y":673,"width":769,"height":11}},{"id":"cd57d71c-7d68-49c3-a35e-761359a71d10","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":33,"box":{"x":69,"y":688,"width":778,"height":11}},{"id":"b2acd363-d522-4012-8eb9-071cc4f4f764","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":33,"box":{"x":69,"y":702,"width":689,"height":12}},{"id":"dc2ac1c7-de08-471e-99b4-5b54baba2517","block_type":"box","text":"Each Trustee Elect currently serves as a consultant to the Independent Trustees in the performance of the","page_number":33,"box":{"x":102,"y":726,"width":761,"height":11}},{"id":"732a69bc-328a-48e1-8c11-46756f29b1c3","block_type":"box","text":"Independent Trustees’ duties to the Trust and is paid compensation at the same rate as the compensation paid to","page_number":33,"box":{"x":70,"y":741,"width":816,"height":11}},{"id":"f64ed27d-910c-4348-aeba-e41d9b64f16f","block_type":"box","text":"any Independent Trustees who are not the Chair of the Board or a Chair of a Committee. This compensation","page_number":33,"box":{"x":69,"y":756,"width":768,"height":11}},{"id":"0d013a3e-286e-4ef8-b2f6-2c08d61c90de","block_type":"box","text":"arrangement will continue until July 1, 2026, when each Trustee Elect is expected to begin serving as an","page_number":33,"box":{"x":69,"y":771,"width":747,"height":11}},{"id":"dfc5b6b4-06d0-488b-b129-cfca2e57885b","block_type":"box","text":"Independent Trustee and will be compensated in a manner similar to other Independent Trustees.","page_number":33,"box":{"x":70,"y":786,"width":695,"height":11}},{"id":"cab29af3-5f4a-4ad3-bb98-e65efbaa9bbc","block_type":"box","text":"The following table sets forth the compensation MIP paid to the Trustees, on behalf of the Master Portfolios, for","page_number":33,"box":{"x":101,"y":809,"width":801,"height":11}},{"id":"0ad2fb60-d7d9-408d-b30f-949eee3c2849","block_type":"box","text":"the fiscal year ended December 31, 2025 and the aggregate compensation paid to them by all BlackRock-advised","page_number":33,"box":{"x":68,"y":824,"width":813,"height":11}},{"id":"afc4f7bc-6149-4e89-81cd-ccf977f74ec6","block_type":"box","text":"Funds for the calendar year ended December 31, 2025. The Trustees received no additional compensation from the","page_number":33,"box":{"x":70,"y":839,"width":826,"height":11}},{"id":"7d4fe5c5-a07a-4243-b259-06b7cdacff94","block_type":"box","text":"Trust on behalf of the Funds.","page_number":33,"box":{"x":68,"y":854,"width":205,"height":9}},{"id":"b510087c-476d-43e3-a6a6-8f1756af5af6","block_type":"box","text":"I-17","page_number":33,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"17ab336c-e2ff-4d04-ab4d-959e4a2ce261","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"316024e2-de00-48e8-b1ac-1575038138f5","block_type":"box","text":"Name","page_number":34,"box":{"x":69,"y":89,"width":32,"height":7}},{"id":"37e68dec-3c97-428b-a07e-042a7be6e0fa","block_type":"box","text":"Compensation","page_number":34,"box":{"x":379,"y":49,"width":82,"height":9}},{"id":"f089f301-c477-4985-a829-05d46a5e13a0","block_type":"box","text":"from the Total","page_number":34,"box":{"x":380,"y":59,"width":80,"height":7}},{"id":"a55a6944-2f71-4d23-8dbb-21acbc4b5f7d","block_type":"box","text":"International","page_number":34,"box":{"x":384,"y":69,"width":73,"height":7}},{"id":"cd89524e-df95-4f40-bb47-482fb95d9aba","block_type":"box","text":"ex U.S. Index","page_number":34,"box":{"x":382,"y":79,"width":77,"height":7}},{"id":"0c32134f-5356-448a-bbc7-94ab871f9f54","block_type":"box","text":"Master Portfolio","page_number":34,"box":{"x":373,"y":89,"width":95,"height":7}},{"id":"3968df42-c3f1-4381-a986-8786f4c293cc","block_type":"box","text":"Compensation","page_number":34,"box":{"x":504,"y":59,"width":82,"height":9}},{"id":"ca8f522d-b18f-4f41-8920-98341379555e","block_type":"box","text":"from the Large","page_number":34,"box":{"x":502,"y":69,"width":86,"height":9}},{"id":"250347df-3374-41a6-b9ca-058196d11715","block_type":"box","text":"Cap Index","page_number":34,"box":{"x":516,"y":79,"width":58,"height":9}},{"id":"584ea595-6588-4d04-9c04-a825441c1b8e","block_type":"box","text":"Master Portfolio","page_number":34,"box":{"x":498,"y":89,"width":94,"height":7}},{"id":"7d304352-0fde-478d-8771-d11b9b9e04ff","block_type":"box","text":"Estimated Annual","page_number":34,"box":{"x":623,"y":69,"width":101,"height":7}},{"id":"dc1ca7dc-bf1b-4e3d-b425-0fa95012183c","block_type":"box","text":"Benefits upon","page_number":34,"box":{"x":634,"y":79,"width":79,"height":9}},{"id":"10eeb8e2-9358-41b0-b236-94fa3ca48281","block_type":"box","text":"Retirement","page_number":34,"box":{"x":642,"y":89,"width":64,"height":7}},{"id":"82df4d0e-aa4b-4196-a559-c7b5e76a4a5e","block_type":"box","text":"Aggregate Compensation","page_number":34,"box":{"x":758,"y":59,"width":148,"height":9}},{"id":"4874d69f-3ff4-4b57-9de3-1640030d17b2","block_type":"box","text":"from the Master Portfolios","page_number":34,"box":{"x":755,"y":69,"width":154,"height":7}},{"id":"029d3672-01e1-4d0f-b034-f5bb3c8def18","block_type":"box","text":"and Other BlackRock","page_number":34,"box":{"x":769,"y":79,"width":127,"height":7}},{"id":"80509a83-3c78-481f-8c40-847bafcda76e","block_type":"box","text":"Advised Funds","page_number":34,"box":{"x":788,"y":89,"width":84,"height":7}},{"id":"34885cff-7abe-46c8-8226-686882361578","block_type":"box","text":"1","page_number":34,"box":{"x":872,"y":89,"width":4,"height":4}},{"id":"84bcafe5-ae69-4de1-9c93-7000c664b2d7","block_type":"box","text":"Independent Trustees","page_number":34,"box":{"x":70,"y":107,"width":154,"height":11}},{"id":"8cfbb4df-ade0-4f6e-a57a-b22bb84ff3ad","block_type":"box","text":"Christopher J. Ailman . . . . . . . . . . . . . . $1,707 $20,706 None $445,000","page_number":34,"box":{"x":79,"y":121,"width":789,"height":12}},{"id":"746bc546-13a3-4097-b74d-6cbd367b3002","block_type":"box","text":"Susan J. Carter","page_number":34,"box":{"x":79,"y":137,"width":110,"height":9}},{"id":"cab225ef-efa8-46aa-98d4-e856838fe45d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . $1,707","page_number":34,"box":{"x":193,"y":137,"width":253,"height":11}},{"id":"c884924f-5216-45ce-a09f-f7c87f44891d","block_type":"box","text":"$20,706 None $445,000","page_number":34,"box":{"x":514,"y":137,"width":354,"height":11}},{"id":"93176b08-9948-472b-a44b-af66ad124c08","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . $1,707","page_number":34,"box":{"x":79,"y":152,"width":367,"height":11}},{"id":"24ac32c9-2563-4ac9-8658-6f6621e49f49","block_type":"box","text":"$20,706 None $445,000","page_number":34,"box":{"x":514,"y":152,"width":354,"height":11}},{"id":"fdc85a12-c096-4686-bc41-c70d17edcc2b","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . $1,749","page_number":34,"box":{"x":79,"y":167,"width":368,"height":12}},{"id":"008f2f60-a644-45ba-a62a-23799d3d2428","block_type":"box","text":"$21,461 None $467,500","page_number":34,"box":{"x":514,"y":167,"width":354,"height":11}},{"id":"03e418bc-42cd-4dfe-963a-565036a81088","block_type":"box","text":"Henry R. Keizer","page_number":34,"box":{"x":79,"y":183,"width":109,"height":11}},{"id":"5a70b0fd-169c-4980-90bb-a4c9e994262a","block_type":"box","text":"2","page_number":34,"box":{"x":189,"y":183,"width":4,"height":4}},{"id":"6beadda8-1a9f-412e-99fd-9e68125a6156","block_type":"box","text":". . . . . . . . . . . . . . . . . . $1,847","page_number":34,"box":{"x":201,"y":182,"width":245,"height":11}},{"id":"e026dbf4-04ba-493a-acc8-7164dcb72e4e","block_type":"box","text":"$23,325 None $490,000","page_number":34,"box":{"x":514,"y":182,"width":354,"height":11}},{"id":"6255e390-6533-4748-bd40-e7e0da12ef6b","block_type":"box","text":"Cynthia A. Montgomery","page_number":34,"box":{"x":79,"y":198,"width":164,"height":11}},{"id":"681b9d02-b46a-447f-ab26-5d510e128c8f","block_type":"box","text":"3","page_number":34,"box":{"x":244,"y":198,"width":4,"height":5}},{"id":"6d5511bd-3c70-4e09-818f-4c2b95c603a2","block_type":"box","text":". . . . . . . . . . . . $1,847 $23,325 None $490,000","page_number":34,"box":{"x":250,"y":197,"width":618,"height":11}},{"id":"ae7ad5e3-b788-4e3d-ae57-77bf7d8e5866","block_type":"box","text":"Donald C. 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BAL and its affiliates also furnish office space","page_number":35,"box":{"x":69,"y":561,"width":831,"height":11}},{"id":"b51aeb66-8dc7-47ad-8b8a-2e2123d60420","block_type":"box","text":"and certain facilities to conduct each Fund’s business and compensate the Trust’s Trustees, officers and employees","page_number":35,"box":{"x":69,"y":576,"width":834,"height":11}},{"id":"23916ef9-ee70-4bcd-97a5-d9a2e039bd13","block_type":"box","text":"who are affiliated with BAL. BAL is entitled to receive an annual administration fee for providing administration","page_number":35,"box":{"x":68,"y":591,"width":786,"height":12}},{"id":"a713f956-8eb9-451d-83dc-c91aa2a48500","block_type":"box","text":"services of 0.01% of the average daily net assets of Total International Index Fund. BAL is entitled to receive an","page_number":35,"box":{"x":69,"y":606,"width":796,"height":12}},{"id":"ba078379-3a3a-4007-a4dc-d947c8603008","block_type":"box","text":"annual administration fee for providing administration services of 0.01% of the average daily net assets of Large-Cap","page_number":35,"box":{"x":69,"y":622,"width":834,"height":11}},{"id":"71d296f8-4eba-45c2-92f8-b51dd52a0ddf","block_type":"box","text":"Index Fund.","page_number":35,"box":{"x":70,"y":637,"width":79,"height":9}},{"id":"9ca7908e-01ee-489e-8058-71ca45d0655f","block_type":"box","text":"For the past three fiscal years, each Fund paid BAL administration fees, and BAL waived administration fees","page_number":35,"box":{"x":102,"y":659,"width":769,"height":12}},{"id":"2cf110d3-1126-48be-99bb-342a1d14cf65","block_type":"box","text":"and/or reimbursed expenses, as 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.","page_number":35,"box":{"x":70,"y":762,"width":426,"height":10}},{"id":"8dc83a53-f6b3-42f1-aaf5-65cb502c134b","block_type":"box","text":"......","page_number":35,"box":{"x":502,"y":769,"width":43,"height":1}},{"id":"e6cf4de0-1173-43fd-a0f8-f33ee28bc0b7","block_type":"box","text":"$187,197 $ 956 $ 2,874","page_number":35,"box":{"x":576,"y":761,"width":305,"height":11}},{"id":"4f4d6983-3ef5-4461-82e2-540a9aa17756","block_type":"box","text":"Fiscal Year Ended December 31, 2023. . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":777,"width":426,"height":10}},{"id":"375e7c5d-3ac6-4091-af94-61f789eaba8c","block_type":"box","text":"......","page_number":35,"box":{"x":502,"y":784,"width":43,"height":1}},{"id":"b2fbafcb-3350-41f6-896b-8294a95974e9","block_type":"box","text":"$159,662 $50,406 $127,261","page_number":35,"box":{"x":576,"y":776,"width":305,"height":11}},{"id":"8e21c1f4-c116-4409-8db3-fc48a75753f4","block_type":"box","text":"Large-Cap Index 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BAL","page_number":35,"box":{"x":826,"y":832,"width":40,"height":9}},{"id":"4994c540-8ca7-4826-8d6f-a97531cf1576","block_type":"box","text":"Fiscal Year Ended December 31, 2025. . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":850,"width":426,"height":10}},{"id":"d07f841b-2987-4895-a127-dbdb9776f265","block_type":"box","text":"......","page_number":35,"box":{"x":502,"y":857,"width":43,"height":2}},{"id":"88383fa6-d7b4-4ff8-958c-59615cf94b73","block_type":"box","text":"$167,390 $ 0 $ 219","page_number":35,"box":{"x":576,"y":849,"width":295,"height":11}},{"id":"9841a23b-91d7-4d05-be16-2e0fde0ed7c8","block_type":"box","text":"Fiscal Year Ended December 31, 2024. . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":865,"width":426,"height":10}},{"id":"26c5686c-d851-41b0-93ff-0a84a4fe3ae3","block_type":"box","text":"......","page_number":35,"box":{"x":502,"y":872,"width":43,"height":2}},{"id":"8df821ef-1353-4719-9e1c-0092b43ea0a6","block_type":"box","text":"$133,360 $ 0 $ 64","page_number":35,"box":{"x":576,"y":864,"width":296,"height":11}},{"id":"8455f724-3fa6-4d1a-80dd-eff3dc9968ef","block_type":"box","text":"Fiscal Year Ended December 31, 2023. . . . . . . . . . . . . . . . . . .","page_number":35,"box":{"x":70,"y":880,"width":426,"height":10}},{"id":"d4bf80fe-1dc0-4344-ad9c-d4b4fe822d9c","block_type":"box","text":". . . . . . $ 88,826","page_number":35,"box":{"x":502,"y":879,"width":146,"height":11}},{"id":"fb45ad60-6a35-4f7b-bfd6-ab0803054ffb","block_type":"box","text":"$626 $7,432","page_number":35,"box":{"x":696,"y":879,"width":175,"height":11}},{"id":"89d7ac5f-e92d-4325-8b66-7236b052804e","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"427fbad3-fb4c-4bbb-9382-acde1958d6bb","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d015341-c1d3-490c-adc5-1a8a84292bd7","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BAL provides certain shareholder","page_number":36,"box":{"x":102,"y":45,"width":784,"height":11}},{"id":"76a34c7e-b047-4e74-ba14-9f12dbeafd03","block_type":"box","text":"liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Funds reimburses","page_number":36,"box":{"x":70,"y":60,"width":823,"height":10}},{"id":"3064fd40-c6dd-4c8d-b49f-ede38f276c93","block_type":"box","text":"BAL for its costs in maintaining the service center, which costs include, among other things, employee salaries,","page_number":36,"box":{"x":70,"y":75,"width":793,"height":11}},{"id":"190433f6-4961-4de2-b93d-207bb67d4644","block_type":"box","text":"leasehold expenses, and other out-of-pocket expenses.","page_number":36,"box":{"x":70,"y":90,"width":391,"height":11}},{"id":"71781052-0a99-4f84-9a97-edb620804f1c","block_type":"box","text":"For the past three fiscal years, the Trust, on behalf of the Funds, reimbursed to BAL fees for shareholder liaison","page_number":36,"box":{"x":102,"y":113,"width":797,"height":11}},{"id":"b047d049-ef2b-4720-b373-a0f17814d256","block_type":"box","text":"services pursuant to such agreement as 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.","page_number":36,"box":{"x":70,"y":200,"width":528,"height":10}},{"id":"8fb33417-095a-47fa-bf8c-326d4b789246","block_type":"box","text":". . . . . . . . . . . . . $ 9,147 $ 437","page_number":36,"box":{"x":604,"y":199,"width":292,"height":11}},{"id":"f711e47e-af84-42bb-853a-133980b9ba0d","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":36,"box":{"x":70,"y":215,"width":528,"height":10}},{"id":"9749ac6b-a998-4b8a-b1c4-f3f9f0a2b267","block_type":"box","text":".............","page_number":36,"box":{"x":604,"y":222,"width":100,"height":2}},{"id":"ce4f206f-fe28-44fb-b658-8f6fff4e800d","block_type":"box","text":"$10,464 $ 748","page_number":36,"box":{"x":738,"y":214,"width":159,"height":11}},{"id":"faab906a-a00a-4d2f-b050-95f7a030fc62","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":36,"box":{"x":70,"y":230,"width":528,"height":10}},{"id":"273af4e4-0ecf-45ff-a704-d02ea71782c2","block_type":"box","text":". . . . . . . . . . . . . $ 7,876 $5,285","page_number":36,"box":{"x":604,"y":229,"width":293,"height":11}},{"id":"5de1a14d-ce3a-46ca-b0dd-550fb7cbfa06","block_type":"box","text":"Large-Cap Index Fund","page_number":36,"box":{"x":764,"y":259,"width":125,"height":9}},{"id":"1bb637a0-0616-472c-971e-02812a90a408","block_type":"box","text":"Fees Paid","page_number":36,"box":{"x":747,"y":275,"width":56,"height":7}},{"id":"b09f7c9a-5e6a-40fe-ab92-51a47bc2ccf5","block_type":"box","text":"to BAL","page_number":36,"box":{"x":755,"y":285,"width":39,"height":7}},{"id":"26e8ec04-7157-4d61-b530-237eee6dc0c0","block_type":"box","text":"Fees Waived","page_number":36,"box":{"x":837,"y":275,"width":72,"height":7}},{"id":"37bfda78-0e1a-4ad9-8702-90a747fa8cbe","block_type":"box","text":"by BAL","page_number":36,"box":{"x":853,"y":285,"width":40,"height":9}},{"id":"2cfe65d8-e731-4803-a506-0a2f73de5b91","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . .","page_number":36,"box":{"x":70,"y":303,"width":438,"height":10}},{"id":"fb3d63ef-68f3-49a6-8350-4f46fd96bef5","block_type":"box","text":".........................","page_number":36,"box":{"x":515,"y":310,"width":197,"height":2}},{"id":"8f6f7098-4db1-4077-b4bc-32913fcf352d","block_type":"box","text":"$15,880 $871","page_number":36,"box":{"x":744,"y":302,"width":148,"height":11}},{"id":"e770365f-e3fb-41f7-8799-ec806dbfed21","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . 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3,167","page_number":36,"box":{"x":515,"y":332,"width":290,"height":12}},{"id":"81e3831a-d130-4ed3-a883-10df03293e6b","block_type":"box","text":"$394","page_number":36,"box":{"x":854,"y":332,"width":38,"height":11}},{"id":"ca47da9d-4680-4c33-ab58-915976a29325","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":36,"box":{"x":69,"y":365,"width":335,"height":11}},{"id":"27b3e2ad-f65c-4d33-8abc-4afc20667c8e","block_type":"box","text":"Jennifer Hsui, CFA, Matt Waldron, CFA, Peter Sietsema, CFA, and Steven White are the portfolio managers of the","page_number":36,"box":{"x":101,"y":387,"width":802,"height":12}},{"id":"111cc4a8-4452-4840-a5d7-dcf32c8aa46a","block_type":"box","text":"Master Portfolios and are jointly and primarily responsible for the day-to-day management of each Master Portfolio.","page_number":36,"box":{"x":70,"y":402,"width":816,"height":12}},{"id":"255e3d9e-e3ae-4bc6-b133-44c5edcd5c9b","block_type":"box","text":"Other Funds and Accounts Managed","page_number":36,"box":{"x":70,"y":433,"width":257,"height":11}},{"id":"52760720-beaa-4f03-bf72-79dddaa5fb57","block_type":"box","text":"The following table sets forth information about the funds and accounts other than the applicable Master","page_number":36,"box":{"x":101,"y":455,"width":751,"height":12}},{"id":"cad91c06-8a06-4ab5-a530-592e6cfb91f3","block_type":"box","text":"Portfolio for which the managers are jointly and primarily responsible for the day-to-day portfolio management as of","page_number":36,"box":{"x":69,"y":470,"width":819,"height":12}},{"id":"07a6b3e7-c7bf-4668-86b2-feb555bdfbc8","block_type":"box","text":"December 31, 2025.","page_number":36,"box":{"x":70,"y":486,"width":147,"height":10}},{"id":"1ecab3dd-dd61-4daa-9d60-7f5a14b37087","block_type":"box","text":"Total International ex US Index Master Portfolio","page_number":36,"box":{"x":68,"y":516,"width":350,"height":9}},{"id":"dc34d3a3-3917-4cc6-8797-fbd53ab2047b","block_type":"box","text":"Number of 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The principal components of","page_number":37,"box":{"x":69,"y":330,"width":823,"height":11}},{"id":"328ea0bd-1130-449b-b530-e082e4a6e542","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":37,"box":{"x":69,"y":345,"width":799,"height":11}},{"id":"418c35a4-dbb1-4e27-a433-5c450531f6ec","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":37,"box":{"x":70,"y":360,"width":670,"height":12}},{"id":"b79f0a75-5549-4e5d-99fd-545da118d257","block_type":"box","text":"Base Compensation.","page_number":37,"box":{"x":102,"y":383,"width":148,"height":11}},{"id":"0ef8b3c3-cb14-4760-b98c-3fa8d7cb4a23","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":37,"box":{"x":257,"y":383,"width":640,"height":11}},{"id":"dda1e919-730f-4783-87f6-5d9b9a80a2ef","block_type":"box","text":"firm.","page_number":37,"box":{"x":68,"y":398,"width":32,"height":9}},{"id":"bfafe197-30f8-4c06-bbdf-3dc72e42ed1e","block_type":"box","text":"Discretionary Incentive Compensation.","page_number":37,"box":{"x":102,"y":421,"width":281,"height":11}},{"id":"939e44f0-98e9-4414-a651-5f262925fca5","block_type":"box","text":"Discretionary incentive compensation is a function of several","page_number":37,"box":{"x":391,"y":421,"width":432,"height":11}},{"id":"2b679696-f8f1-4485-a408-f46704844b51","block_type":"box","text":"components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within","page_number":37,"box":{"x":69,"y":436,"width":759,"height":11}},{"id":"950faabb-6b0c-43d8-9042-616fcfebdfe9","block_type":"box","text":"BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or","page_number":37,"box":{"x":70,"y":451,"width":821,"height":11}},{"id":"629070f5-7de7-4aaf-9147-35d62090f494","block_type":"box","text":"supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and","page_number":37,"box":{"x":69,"y":466,"width":819,"height":11}},{"id":"b4ce6609-0a7b-4d7b-b499-9cbfbc8e8e76","block_type":"box","text":"contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the","page_number":37,"box":{"x":69,"y":481,"width":832,"height":11}},{"id":"42eceacc-0f7a-4fa0-9852-a60f5f706c4d","block_type":"box","text":"same as the benchmark or benchmarks against which the performance of the Funds or other accounts managed by","page_number":37,"box":{"x":69,"y":496,"width":824,"height":12}},{"id":"65214c26-2ea5-4fb4-960b-4ddade08f53b","block_type":"box","text":"the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":37,"box":{"x":68,"y":511,"width":832,"height":12}},{"id":"12a64b3d-93bf-432c-9efc-a300e8cbf0bd","block_type":"box","text":"determination with respect to each portfolio manager’s compensation based on the performance of the Funds and","page_number":37,"box":{"x":69,"y":526,"width":818,"height":12}},{"id":"0b687acc-2beb-42b3-b420-54129edf02b2","block_type":"box","text":"other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income","page_number":37,"box":{"x":69,"y":542,"width":833,"height":11}},{"id":"bf4f7b8e-17ce-4254-b928-0ce902db598e","block_type":"box","text":"and multi asset class funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3-","page_number":37,"box":{"x":69,"y":557,"width":834,"height":11}},{"id":"dff1999b-18fa-4f2a-b0db-81e4561b84e7","block_type":"box","text":"and 5- year periods, as applicable. Performance of index funds is based on the performance of such funds relative to","page_number":37,"box":{"x":69,"y":572,"width":837,"height":11}},{"id":"488d8933-d940-4452-a49a-cc55a4a3d578","block_type":"box","text":"pre-determined tolerance bands around a benchmark, as applicable. The performance of Messrs. Waldron, Sietsema,","page_number":37,"box":{"x":70,"y":587,"width":837,"height":11}},{"id":"e5ab727c-0ca6-4ffa-8f56-bc9f8aca51c2","block_type":"box","text":"and White and Ms. Hsui is not measured against a specific benchmark.","page_number":37,"box":{"x":69,"y":602,"width":509,"height":11}},{"id":"2c056bef-7779-45df-bab0-93d76ea28686","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":37,"box":{"x":102,"y":625,"width":389,"height":11}},{"id":"d49e7da8-6f60-4b14-a06d-e95fb324f167","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":37,"box":{"x":499,"y":625,"width":383,"height":11}},{"id":"2aec3430-ad87-4484-be2f-cf8d9e47c66f","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":37,"box":{"x":70,"y":640,"width":815,"height":11}},{"id":"f94d21b6-434b-44d4-9669-339b52f78f60","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":37,"box":{"x":68,"y":655,"width":522,"height":11}},{"id":"724943fd-c7bb-4971-9513-8582c5f0f922","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":37,"box":{"x":102,"y":678,"width":760,"height":11}},{"id":"652e3f96-c0e5-4522-9ca6-e4e3729a3221","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":37,"box":{"x":69,"y":693,"width":795,"height":11}},{"id":"111ec935-0369-4af0-b40a-be2664eb285e","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":37,"box":{"x":69,"y":708,"width":805,"height":11}},{"id":"24e148a2-211a-49dc-895b-b874e1e3a619","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":37,"box":{"x":69,"y":723,"width":822,"height":11}},{"id":"01b81d25-ec8f-475b-a1d1-c7881915dea4","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":37,"box":{"x":68,"y":738,"width":839,"height":11}},{"id":"0e267da7-9474-4cf4-9a94-e91d832b5fd9","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":37,"box":{"x":69,"y":753,"width":802,"height":12}},{"id":"bf467944-3afa-47cb-bddb-3e7e04c9a150","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":37,"box":{"x":70,"y":768,"width":820,"height":12}},{"id":"0473a90a-9c37-461e-a563-fb1a149e9ff9","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":37,"box":{"x":70,"y":783,"width":801,"height":12}},{"id":"6cde73c8-a663-4507-9175-3e444b7cc301","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":37,"box":{"x":70,"y":799,"width":831,"height":11}},{"id":"c6fb8405-3ab8-427f-8cac-70c31b37058f","block_type":"box","text":"managers of these Funds have deferred BlackRock, Inc. stock awards.","page_number":37,"box":{"x":69,"y":814,"width":501,"height":11}},{"id":"d2c6d123-a8c3-45f3-a8e6-5b57cdcca249","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":37,"box":{"x":102,"y":836,"width":785,"height":12}},{"id":"c23292e7-37a6-461a-9e12-1c74f0267f5e","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":37,"box":{"x":68,"y":852,"width":836,"height":11}},{"id":"20c9d912-3ac3-47aa-b540-c34b36dda61e","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":37,"box":{"x":68,"y":867,"width":821,"height":11}},{"id":"2c1816d6-3252-4bb5-85bd-6a5c222b8488","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":37,"box":{"x":69,"y":882,"width":829,"height":11}},{"id":"3c0b552d-4dbd-4714-a891-43209d554152","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":37,"box":{"x":70,"y":897,"width":835,"height":11}},{"id":"b33627b9-ce42-4c17-989b-99a7f3c71306","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":37,"box":{"x":69,"y":912,"width":414,"height":11}},{"id":"949d4872-98eb-4545-be49-44548ba604e6","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"92e90f9b-f307-4daa-9c1b-dd12ecb3683c","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"140874e1-26e8-4c76-8e1d-89866093d06d","block_type":"box","text":"Other Compensation Benefits.","page_number":38,"box":{"x":101,"y":45,"width":218,"height":11}},{"id":"99b0fded-0489-4dc0-91aa-cbc11af9164a","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":38,"box":{"x":327,"y":45,"width":552,"height":11}},{"id":"94d94664-d97c-4dbb-8779-2756763cdd70","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":38,"box":{"x":69,"y":60,"width":582,"height":11}},{"id":"0e4fb528-596a-4b67-9a9c-8af78e5ba81f","block_type":"box","text":"Incentive Savings Plans","page_number":38,"box":{"x":102,"y":83,"width":167,"height":11}},{"id":"9e10a294-9f65-4121-abb6-741c86f233c1","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":38,"box":{"x":274,"y":82,"width":614,"height":12}},{"id":"9c9b3f85-531c-4417-988c-d6611297bb66","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":38,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"96f613fb-0726-47e6-9842-6ebbda76b426","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":38,"box":{"x":70,"y":113,"width":785,"height":11}},{"id":"366e2710-0646-4116-883f-59d7b893015f","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":38,"box":{"x":69,"y":127,"width":830,"height":12}},{"id":"2d131c59-c7bd-45c7-9b71-9d414815989c","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":38,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"53e5d874-fd4d-443c-9da4-795cbbbb463c","block_type":"box","text":"($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and","page_number":38,"box":{"x":69,"y":157,"width":831,"height":12}},{"id":"f9f799e4-ff4f-4133-b040-65eee7406dae","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":38,"box":{"x":69,"y":173,"width":798,"height":11}},{"id":"309e26c7-bca7-4cb7-b97e-99a762e00048","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":38,"box":{"x":70,"y":188,"width":809,"height":12}},{"id":"366c92e5-3053-455d-a9b0-8ba91331daef","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":38,"box":{"x":68,"y":203,"width":793,"height":12}},{"id":"d11967b9-131e-46a8-94d5-ec819686421a","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":38,"box":{"x":70,"y":218,"width":832,"height":11}},{"id":"15b6d46b-331e-4281-85b5-1b9f37c467dc","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":38,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"ccee402e-8857-4fdc-9794-3e3fc03b6c7b","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":38,"box":{"x":69,"y":248,"width":808,"height":12}},{"id":"406d6588-1bc1-46a3-8126-527e3a7a7640","block_type":"box","text":"participate in these plans.","page_number":38,"box":{"x":70,"y":264,"width":185,"height":11}},{"id":"559308af-a220-427a-963d-bcbaa62ecd66","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":38,"box":{"x":69,"y":294,"width":268,"height":11}},{"id":"a634af56-6d54-4a21-a0db-e9d3c459e28c","block_type":"box","text":"The following table sets forth the dollar range of equity securities of the Fund beneficially owned by the portfolio","page_number":38,"box":{"x":101,"y":317,"width":798,"height":11}},{"id":"cba28e8e-b7e5-4001-9361-200dbf9beca6","block_type":"box","text":"managers as of December 31, 2025.","page_number":38,"box":{"x":69,"y":332,"width":265,"height":11}},{"id":"506e32aa-cd5d-4509-bc7c-9146f5263e9a","block_type":"box","text":"Portfolio Manager Fund Managed","page_number":38,"box":{"x":69,"y":370,"width":575,"height":9}},{"id":"c55a5d55-ea34-411a-9682-35d3da72b418","block_type":"box","text":"Dollar Range of Equity","page_number":38,"box":{"x":759,"y":360,"width":129,"height":9}},{"id":"201f3990-0c83-4eee-a2dd-5e9eb625c3ec","block_type":"box","text":"Securities Beneficially Owned","page_number":38,"box":{"x":736,"y":370,"width":173,"height":9}},{"id":"8d4818de-887a-4835-aee5-fde81a5a2919","block_type":"box","text":"Jennifer Hsui, CFA","page_number":38,"box":{"x":69,"y":388,"width":128,"height":10}},{"id":"e74d06c2-0eed-4a61-b33d-db4450796ff0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Internati","page_number":38,"box":{"x":203,"y":388,"width":390,"height":9}},{"id":"9db70547-d6eb-4d6b-80d2-14f6300629af","block_type":"box","text":"onal Index Fund None","page_number":38,"box":{"x":595,"y":388,"width":246,"height":9}},{"id":"e73b811f-05de-4386-a52d-d93668ef954c","block_type":"box","text":"Large-Cap Index Fund None","page_number":38,"box":{"x":527,"y":403,"width":314,"height":11}},{"id":"a99f8413-f98b-4b4d-9048-b4abba9a51f2","block_type":"box","text":"Matt Waldron, CFA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Internati","page_number":38,"box":{"x":70,"y":418,"width":523,"height":11}},{"id":"1c6b5f96-301a-4082-89ca-20b4106f289b","block_type":"box","text":"onal Index Fund None","page_number":38,"box":{"x":595,"y":418,"width":246,"height":9}},{"id":"094172be-dc78-4109-ad39-48145f4cc5f9","block_type":"box","text":"Large-Cap Index Fund None","page_number":38,"box":{"x":527,"y":433,"width":314,"height":12}},{"id":"3814a9df-7d45-439b-83ee-d05a6c87a55b","block_type":"box","text":"Peter Sietsema, CFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Internati","page_number":38,"box":{"x":69,"y":449,"width":524,"height":10}},{"id":"48c71282-6e93-402e-9abe-356d27cd2df7","block_type":"box","text":"onal Index Fund None","page_number":38,"box":{"x":595,"y":449,"width":246,"height":8}},{"id":"3bba2ea9-6ab1-46b5-9e27-604685e93674","block_type":"box","text":"Large-Cap Index Fund None","page_number":38,"box":{"x":527,"y":464,"width":314,"height":11}},{"id":"bed66afa-0208-4b12-9064-710dd421773b","block_type":"box","text":"Steven White . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total Internati","page_number":38,"box":{"x":69,"y":479,"width":524,"height":9}},{"id":"4cee50a2-b55f-45d2-b09a-2e81267bd90c","block_type":"box","text":"onal Index Fund None","page_number":38,"box":{"x":595,"y":479,"width":246,"height":9}},{"id":"a91c76aa-e656-46c0-9aa8-a1b95ef40c90","block_type":"box","text":"Large-Cap Index Fund None","page_number":38,"box":{"x":527,"y":494,"width":314,"height":11}},{"id":"69cda28d-b80a-4483-b1db-f0f031a7b2db","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":38,"box":{"x":69,"y":555,"width":403,"height":12}},{"id":"76fbe587-f901-46b3-a745-0258dc89545a","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":38,"box":{"x":102,"y":578,"width":727,"height":11}},{"id":"ce2edbc0-272d-4195-90a8-c99f8f0820a8","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":38,"box":{"x":70,"y":593,"width":814,"height":12}},{"id":"5750360d-0302-4415-8f61-38b69dc8fd1c","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":38,"box":{"x":70,"y":608,"width":837,"height":11}},{"id":"6787e051-e645-4738-8188-46b4341b3fcd","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":38,"box":{"x":70,"y":623,"width":810,"height":12}},{"id":"d4e0ebf9-0de1-4ccb-94f0-7143c6664546","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":38,"box":{"x":69,"y":639,"width":782,"height":11}},{"id":"63d13ea9-d77f-499d-b409-59a30b138225","block_type":"box","text":"management and advisory services to numerous clients in addition to the Funds, and BlackRock may, consistent with","page_number":38,"box":{"x":69,"y":654,"width":838,"height":11}},{"id":"461c7a57-ef5d-4c83-83c6-31a1aa109104","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":38,"box":{"x":69,"y":669,"width":828,"height":11}},{"id":"c041f5b3-9189-4c10-a150-371a86e5f35f","block_type":"box","text":"funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest","page_number":38,"box":{"x":68,"y":684,"width":834,"height":11}},{"id":"b307c955-5565-48e4-ab3d-6aafaad4da20","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Funds. In addition,","page_number":38,"box":{"x":70,"y":699,"width":785,"height":11}},{"id":"b8d0155e-286b-4f45-bbb8-b62857fa2972","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":38,"box":{"x":70,"y":714,"width":821,"height":12}},{"id":"6cfb52a0-93eb-4174-8f87-4dca634dd3f6","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Funds. BlackRock, or","page_number":38,"box":{"x":69,"y":730,"width":827,"height":10}},{"id":"d845b76d-1bad-4a62-aa40-38089d1345a5","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":38,"box":{"x":69,"y":744,"width":831,"height":12}},{"id":"1ca8cad9-7eca-49a0-9c5a-0ec56bb0b181","block_type":"box","text":"families may take different actions than those recommended to the Funds by BlackRock with respect to the same","page_number":38,"box":{"x":68,"y":760,"width":812,"height":11}},{"id":"eed3f1b8-28eb-4200-9d45-4a76245b2e04","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":38,"box":{"x":69,"y":775,"width":760,"height":11}},{"id":"3a550551-7bea-41d3-8783-d73825ed39fc","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":38,"box":{"x":69,"y":790,"width":834,"height":11}},{"id":"f82ed485-bb38-40b0-aceb-b7979e0580db","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":38,"box":{"x":69,"y":805,"width":836,"height":11}},{"id":"bf94d1ac-65ec-4b87-8ba3-7a9e8ac33497","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":38,"box":{"x":69,"y":820,"width":822,"height":11}},{"id":"f2bb3e86-cfca-4cd7-9ea9-bd1d8966d35c","block_type":"box","text":"public information. Certain portfolio managers also may manage accounts whose investment strategies may at times","page_number":38,"box":{"x":70,"y":835,"width":835,"height":11}},{"id":"443c56d6-7b84-47b8-bf70-020721c31057","block_type":"box","text":"be opposed to the strategy utilized for the Funds. It should also be noted that a portfolio manager may be managing","page_number":38,"box":{"x":69,"y":850,"width":828,"height":12}},{"id":"65c9cefb-88ff-41e0-a9dd-d46fa946ccaf","block_type":"box","text":"hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts,","page_number":38,"box":{"x":69,"y":865,"width":811,"height":12}},{"id":"1dece110-23ab-45fe-a987-1582ecbaee9f","block_type":"box","text":"subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees","page_number":38,"box":{"x":69,"y":881,"width":839,"height":11}},{"id":"ef249dbe-e808-4fe9-bac1-c2a310fbd2fc","block_type":"box","text":"earned on such accounts. Currently, the portfolio managers of these Funds are not entitled to receive a portion of","page_number":38,"box":{"x":69,"y":896,"width":813,"height":11}},{"id":"7dad3e1f-254e-472e-9eeb-b38399ad1ae0","block_type":"box","text":"incentive fees of other accounts.","page_number":38,"box":{"x":70,"y":911,"width":231,"height":9}},{"id":"42ef4317-defb-4da0-a8c6-14ce1ac9a5b8","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"841c6a59-5691-4fe0-ab4a-91814f6f4370","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"daac88d6-8865-49d6-9cbc-0f51b9de26fb","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":39,"box":{"x":101,"y":45,"width":788,"height":11}},{"id":"336fc787-ea66-43b7-a77b-03afa9a0b4dd","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":39,"box":{"x":70,"y":60,"width":839,"height":11}},{"id":"cb60e5ff-9367-426e-a1a8-4e13cdf2c3e9","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":39,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"29d76053-3264-4eb6-a476-48023e253e7d","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":39,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"30558a7f-0ce2-4c63-9bef-771f0d8dc189","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":39,"box":{"x":69,"y":105,"width":777,"height":11}},{"id":"f9b6d6b6-faa7-47a0-9e93-d0b24695f956","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":39,"box":{"x":70,"y":120,"width":826,"height":11}},{"id":"be73ba40-ad53-4ede-a9c4-81d99270486f","block_type":"box","text":"Accounting Services","page_number":39,"box":{"x":68,"y":151,"width":150,"height":11}},{"id":"5fe3510c-3746-4414-931d-3a9c7258a7b2","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) serves as the accounting services provider for the Funds.","page_number":39,"box":{"x":102,"y":173,"width":800,"height":11}},{"id":"0afdedc9-121b-4d39-b708-a70534d586f3","block_type":"box","text":"State Street maintains the books of account and other financial records (other than those maintained by the Fund’s","page_number":39,"box":{"x":69,"y":188,"width":824,"height":11}},{"id":"612536a8-1c52-4ecc-b8ad-3cc8a2ac8a85","block_type":"box","text":"custodian); records general ledger entries; reconciles activity to the trial balance; calculates daily net income;","page_number":39,"box":{"x":69,"y":204,"width":779,"height":11}},{"id":"08882940-a07f-4c77-b9e5-8032a1788b33","block_type":"box","text":"calculates and publishes daily net asset value; prepares account balances; and provides such other services as may","page_number":39,"box":{"x":69,"y":219,"width":835,"height":11}},{"id":"46cadfe0-f30f-4ce3-ac56-7aef77cf01ca","block_type":"box","text":"be required. In connection with its accounting services, State Street also provides certain administration services.","page_number":39,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"d534b137-db3e-43d2-a140-81dd1b677ea1","block_type":"box","text":"The table below shows the amounts paid by the Master Portfolio of each Fund to State Street for combined","page_number":39,"box":{"x":101,"y":256,"width":764,"height":11}},{"id":"48ef8208-3709-4ae2-983f-99831b5e564c","block_type":"box","text":"accounting and custodian services for the past three fiscal years:","page_number":39,"box":{"x":69,"y":271,"width":466,"height":12}},{"id":"b2399e0a-37c0-400d-b63a-5beb028c8f4b","block_type":"box","text":"Fees Paid to","page_number":39,"box":{"x":696,"y":300,"width":72,"height":7}},{"id":"1fb04c9d-4267-473e-9ea5-012107251939","block_type":"box","text":"State Street by","page_number":39,"box":{"x":687,"y":310,"width":89,"height":9}},{"id":"50dd4fec-b49c-4697-9d7d-906434ee0356","block_type":"box","text":"Total International","page_number":39,"box":{"x":678,"y":320,"width":106,"height":7}},{"id":"cf61ea4c-c3ad-4b4a-a9af-8639e7b05f50","block_type":"box","text":"ex U.S. Index","page_number":39,"box":{"x":693,"y":330,"width":77,"height":7}},{"id":"41b47ae7-a6fa-49a2-bf27-a7b368eb7ea3","block_type":"box","text":"Master Portfolio","page_number":39,"box":{"x":685,"y":340,"width":94,"height":7}},{"id":"63a4bff2-dbae-4d4d-9653-5f838addbdd7","block_type":"box","text":"Fees Paid to","page_number":39,"box":{"x":826,"y":310,"width":72,"height":7}},{"id":"b783b1e9-b90d-4616-ba0e-727817262a7d","block_type":"box","text":"State Street by","page_number":39,"box":{"x":817,"y":320,"width":89,"height":9}},{"id":"e7b7e9b5-8361-413b-a607-23f6fc557c16","block_type":"box","text":"Large Cap Index","page_number":39,"box":{"x":815,"y":330,"width":94,"height":9}},{"id":"fea6c564-81c7-43fd-b322-12a1c36ab234","block_type":"box","text":"Master Portfolio","page_number":39,"box":{"x":815,"y":340,"width":94,"height":7}},{"id":"5f3d11dd-2870-4399-8ff6-9e1f0734cd1c","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":358,"width":431,"height":10}},{"id":"a6837352-3f49-4a8d-aa33-6f2d6f7de1d7","block_type":"box","text":"..................","page_number":39,"box":{"x":507,"y":365,"width":140,"height":2}},{"id":"60fa87dd-06b1-46ff-928b-2c34039330c7","block_type":"box","text":"$475,839 $486,551","page_number":39,"box":{"x":696,"y":357,"width":202,"height":11}},{"id":"dd0d9ca1-a4e3-4ddf-be1d-9f941c9287aa","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":373,"width":431,"height":10}},{"id":"61dd7e02-5e35-4c50-ae53-e481dc452ab4","block_type":"box","text":"..................","page_number":39,"box":{"x":507,"y":380,"width":140,"height":2}},{"id":"9663b971-451f-40a4-a7b5-9a65fc31c797","block_type":"box","text":"$473,461 $397,330","page_number":39,"box":{"x":696,"y":372,"width":202,"height":11}},{"id":"ac6a667c-7ff1-4a81-996a-4fc135f0631a","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":388,"width":431,"height":10}},{"id":"5b99a118-eb04-4926-a429-e68411acae45","block_type":"box","text":"..................","page_number":39,"box":{"x":507,"y":395,"width":140,"height":2}},{"id":"eff004f5-d34c-49e1-a03a-fbb38041868a","block_type":"box","text":"$610,620 $348,340","page_number":39,"box":{"x":696,"y":387,"width":202,"height":11}},{"id":"b07c1c6f-fee7-446a-877f-397ea8e3e9ad","block_type":"box","text":"Custodian","page_number":39,"box":{"x":69,"y":420,"width":72,"height":8}},{"id":"61517284-af2f-47ab-b30f-7aebb493667f","block_type":"box","text":"State Street Bank and Trust Company (the “Custodian”), which has its principal place of business at One","page_number":39,"box":{"x":102,"y":442,"width":749,"height":11}},{"id":"0eb5eeb8-87fc-4d5d-ad4b-fb948c361204","block_type":"box","text":"Congress Street, Suite 1, Boston, Massachusetts 02114-2016, serves as the custodian for the Funds. The","page_number":39,"box":{"x":69,"y":457,"width":768,"height":12}},{"id":"3381445b-22db-4bca-bb5c-107c2b278698","block_type":"box","text":"Custodian, among other responsibilities, maintains a custody account or accounts in the name of each Fund,","page_number":39,"box":{"x":69,"y":472,"width":777,"height":12}},{"id":"552a87d9-c031-4809-b0d2-5b27fdb5ac3f","block_type":"box","text":"receives and delivers all assets for each Fund upon purchase and upon sale or maturity, and collects and receives all","page_number":39,"box":{"x":69,"y":487,"width":835,"height":12}},{"id":"bab6aa28-df58-4f9b-9fc4-daaba3f79ed0","block_type":"box","text":"income and other payments and distributions on account of the assets of each Fund.","page_number":39,"box":{"x":70,"y":503,"width":605,"height":11}},{"id":"2af67d29-5acc-4ab5-a7a9-326e3ff69795","block_type":"box","text":"Transfer and Dividend Disbursing Agent","page_number":39,"box":{"x":68,"y":533,"width":287,"height":11}},{"id":"6595a53e-eb44-4c43-ba9d-ab081230ebf3","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":39,"box":{"x":102,"y":555,"width":764,"height":12}},{"id":"32e33502-b036-4c30-9bf1-9638cc62fd65","block_type":"box","text":"Westborough, Massachusetts 01581, serves as the transfer agent and dividend disbursing agent for the Funds.","page_number":39,"box":{"x":68,"y":571,"width":800,"height":11}},{"id":"64e6195a-4a60-408c-922f-1166808a4906","block_type":"box","text":"Credit Agreement","page_number":39,"box":{"x":69,"y":601,"width":129,"height":11}},{"id":"fda6fe1b-612c-4e36-8673-d27bcdff1fd8","block_type":"box","text":"MIP, on behalf of the Master Portfolios, along with certain other funds managed by the Manager and its affiliates","page_number":39,"box":{"x":102,"y":623,"width":804,"height":12}},{"id":"3ba978c2-8c7a-4f3f-84dd-daf44ae6cac0","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":39,"box":{"x":69,"y":638,"width":817,"height":12}},{"id":"ec93ed4c-d5dd-4256-a812-3098d9112929","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":39,"box":{"x":68,"y":654,"width":743,"height":11}},{"id":"62d308bd-f84d-4003-8726-efb83fc92666","block_type":"box","text":"commitments designated for certain Participating Funds, the Participating Funds, including the Master Portfolios, can","page_number":39,"box":{"x":69,"y":669,"width":837,"height":11}},{"id":"d26bba9e-3226-4060-a764-a5e6e1c76af1","block_type":"box","text":"borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage","page_number":39,"box":{"x":69,"y":683,"width":819,"height":12}},{"id":"ab75e08b-8729-4e7c-90f5-3a9a6864dc7e","block_type":"box","text":"and other limitations as specified in the Credit Agreement. The Master Portfolios may borrow under the Credit","page_number":39,"box":{"x":69,"y":699,"width":783,"height":11}},{"id":"9234991f-83ba-47a6-bb02-40bf1d6a30ab","block_type":"box","text":"Agreement to meet shareholder redemptions and for other lawful purposes. However, each Master Portfolio may not","page_number":39,"box":{"x":68,"y":714,"width":829,"height":12}},{"id":"e7df220a-9e34-40d9-bb58-0598d0ee2a66","block_type":"box","text":"borrow under the Credit Agreement for leverage. Each Master Portfolio may borrow up to the maximum amount","page_number":39,"box":{"x":69,"y":729,"width":790,"height":12}},{"id":"67a72cc8-2c0c-451f-b32f-0003a072eec4","block_type":"box","text":"allowable under its current Prospectuses and SAI, subject to various other legal, regulatory or contractual limits.","page_number":39,"box":{"x":69,"y":745,"width":799,"height":11}},{"id":"f257051c-5e84-4033-a671-c5cca6833010","block_type":"box","text":"Borrowing results in interest expense and other fees and expenses for a Master Portfolio which may impact the","page_number":39,"box":{"x":70,"y":760,"width":794,"height":11}},{"id":"2cf6b9a6-f2ff-4a94-9818-c21e9000667b","block_type":"box","text":"Master Portfolio’s net expenses. The costs of borrowing may reduce a Master Portfolio’s return. Each Master","page_number":39,"box":{"x":70,"y":775,"width":780,"height":11}},{"id":"24819519-d64b-470e-8ccf-70bb55adf0a1","block_type":"box","text":"Portfolio is charged its pro rata share of upfront fees and commitment fees on the aggregate commitment amount","page_number":39,"box":{"x":69,"y":790,"width":816,"height":11}},{"id":"2569f7ee-c936-4a5b-90c2-2f839d91ade9","block_type":"box","text":"based on its net assets. If a Master Portfolio borrows pursuant to the Credit Agreement, the Master Portfolio will be","page_number":39,"box":{"x":69,"y":805,"width":828,"height":11}},{"id":"ebdec779-ad4d-487c-b5da-6de4e22e7129","block_type":"box","text":"charged interest at a variable rate.","page_number":39,"box":{"x":69,"y":820,"width":245,"height":11}},{"id":"7a82c7e1-da4c-43c3-a524-6ffbbc781b90","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"09b03644-68ca-46ba-861a-0dab1ee38283","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56a30936-610c-4501-832e-021343f6e730","block_type":"box","text":"V. Information on Distribution Related Expenses","page_number":40,"box":{"x":68,"y":45,"width":349,"height":11}},{"id":"1e119cf5-b5cb-4952-9d00-48253b9c4f68","block_type":"box","text":"Distributor","page_number":40,"box":{"x":70,"y":75,"width":74,"height":9}},{"id":"2156e7b5-0441-4360-a145-73f06c60a531","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) is the distributor for the Funds’ shares. BRIL is a","page_number":40,"box":{"x":102,"y":98,"width":757,"height":11}},{"id":"fadbfb8f-ed8c-4a78-911a-6c65680be23e","block_type":"box","text":"registered broker-dealer located at 50 Hudson Yards, New York, New York 10001.","page_number":40,"box":{"x":69,"y":113,"width":579,"height":11}},{"id":"68fb536e-0f6e-4807-82bb-e7487fa8bde2","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection with the continuous","page_number":40,"box":{"x":102,"y":136,"width":759,"height":11}},{"id":"ef3956ba-ed26-4b2f-9f89-2d3c1e4184a6","block_type":"box","text":"offering of shares of the Fund.","page_number":40,"box":{"x":69,"y":150,"width":215,"height":12}},{"id":"3bf5f83f-22de-46dd-aa46-67c7110eb03b","block_type":"box","text":"The Trust, on behalf of each Fund, has adopted an Investor A Shares Distribution Plan (the “Plan”) pursuant to","page_number":40,"box":{"x":101,"y":173,"width":788,"height":11}},{"id":"7e6d4490-eb13-4332-890b-487a8412dc02","block_type":"box","text":"Rule 12b-1 under the Investment Company Act. The table below provides information for the fiscal period ended","page_number":40,"box":{"x":70,"y":188,"width":795,"height":11}},{"id":"a773c474-04de-41c6-b784-63eb01bcfe09","block_type":"box","text":"December 31, 2025 about the 12b-1 fees each Fund paid to BRIL under the Plan. A portion of the fees collected by","page_number":40,"box":{"x":70,"y":203,"width":824,"height":12}},{"id":"275fe1d0-004b-4914-a045-4fa2af69bdfb","block_type":"box","text":"BRIL were paid to affiliates for providing shareholder servicing activities for Investor A Shares.","page_number":40,"box":{"x":70,"y":218,"width":669,"height":12}},{"id":"7c9ff291-fe19-4b11-9aca-4e06f7c0f2a0","block_type":"box","text":"For the fiscal year ended December 31, 2025, each Fund’s Investor A Shares bore the following distribution","page_number":40,"box":{"x":102,"y":241,"width":768,"height":11}},{"id":"7c60d664-8714-41f0-96c3-910e20e221c6","block_type":"box","text":"and/or service fees under the Plan:","page_number":40,"box":{"x":69,"y":256,"width":253,"height":11}},{"id":"87863e43-8f71-4469-b62a-2a4c5bc46f33","block_type":"box","text":"Fund Name","page_number":40,"box":{"x":69,"y":295,"width":64,"height":7}},{"id":"d15a1bc1-bc95-4928-8b6d-518c27db439a","block_type":"box","text":"Fees Paid","page_number":40,"box":{"x":845,"y":285,"width":56,"height":7}},{"id":"088df0f7-2507-4263-870e-50fa85d99b55","block_type":"box","text":"to BRIL","page_number":40,"box":{"x":851,"y":295,"width":44,"height":7}},{"id":"9cbc0ca1-f93b-4e5d-a0bf-12c17c4c7c52","block_type":"box","text":"Total International Index Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":68,"y":313,"width":460,"height":8}},{"id":"5adc6145-8aad-4de6-9966-ac41e4eaa0bf","block_type":"box","text":"..................................","page_number":40,"box":{"x":535,"y":320,"width":270,"height":1}},{"id":"d70bf918-7865-4784-abd3-37af21b9c1c0","block_type":"box","text":"$145,920","page_number":40,"box":{"x":837,"y":312,"width":72,"height":11}},{"id":"05955334-b275-4441-854a-d9b11d5ee972","block_type":"box","text":"Large-Cap Index Fund","page_number":40,"box":{"x":70,"y":328,"width":150,"height":11}},{"id":"70d500be-6f80-405a-938c-01a8d6ab0dc1","block_type":"box","text":"........................................................................","page_number":40,"box":{"x":225,"y":335,"width":580,"height":1}},{"id":"39e94574-6a7d-4562-979f-bd3c50b80e2b","block_type":"box","text":"$279,420","page_number":40,"box":{"x":837,"y":327,"width":72,"height":11}},{"id":"03cfa7cc-18b6-4c40-8ec9-7dea5704d271","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":40,"box":{"x":68,"y":359,"width":318,"height":11}},{"id":"f33965b1-a417-4f95-9244-1c7beceae340","block_type":"box","text":"The offering price for an Investor A, Institutional and Class K Share of the Funds is computed by dividing the","page_number":40,"box":{"x":101,"y":382,"width":771,"height":11}},{"id":"92631e83-e829-4198-827e-a9242dfce9fc","block_type":"box","text":"value of the share class’ net assets by the number of shares of that class outstanding for the applicable Fund. For","page_number":40,"box":{"x":68,"y":397,"width":819,"height":11}},{"id":"bddfce18-202a-431e-8453-0e7019b3421d","block_type":"box","text":"more information on the purchasing and valuation of shares, please see “Purchase of Shares” and “Pricing of","page_number":40,"box":{"x":69,"y":412,"width":785,"height":11}},{"id":"a5b5c819-0ec0-4611-b17b-454a04e0f202","block_type":"box","text":"Shares” in Part II of this SAI.","page_number":40,"box":{"x":69,"y":427,"width":205,"height":9}},{"id":"0575b19f-c752-48e6-880d-a0c4c5ecb50e","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":40,"box":{"x":68,"y":457,"width":302,"height":11}},{"id":"ef58e2b6-45a5-4932-a036-8f4d465128f3","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":40,"box":{"x":102,"y":480,"width":609,"height":11}},{"id":"cb18f8f9-252a-4f37-93a8-74d62cedf01b","block_type":"box","text":"Information about the brokerage commissions paid by each Master Portfolio, including commissions paid to","page_number":40,"box":{"x":102,"y":503,"width":768,"height":11}},{"id":"682e46b8-a27a-4135-90de-98d702f440b4","block_type":"box","text":"affiliates, during the past three fiscal years is set forth in the following tables:","page_number":40,"box":{"x":69,"y":518,"width":556,"height":11}},{"id":"b4a1fc14-4175-4a48-84e7-7315d0ff177d","block_type":"box","text":"Total International ex U.S. Index","page_number":40,"box":{"x":667,"y":546,"width":189,"height":7}},{"id":"627f389f-3bef-4c98-aa4d-1327ef98d8a4","block_type":"box","text":"Master Portfolio","page_number":40,"box":{"x":714,"y":556,"width":95,"height":7}},{"id":"c76153ff-7b7a-48c7-aeeb-d30e719f339e","block_type":"box","text":"Aggregate Brokerage","page_number":40,"box":{"x":613,"y":572,"width":125,"height":9}},{"id":"2dcdb5c6-5aac-4f97-9f90-4da8b503b718","block_type":"box","text":"Commissions Paid","page_number":40,"box":{"x":623,"y":582,"width":106,"height":7}},{"id":"61e28242-5970-4339-aeac-b0b997369b48","block_type":"box","text":"Brokerage Commissions","page_number":40,"box":{"x":769,"y":572,"width":140,"height":9}},{"id":"40c43a53-2603-4291-9a5e-9f6394278fb4","block_type":"box","text":"Paid to Affiliates","page_number":40,"box":{"x":791,"y":582,"width":96,"height":7}},{"id":"3fba5c79-c5b4-417e-9bfc-c60254a23a52","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . 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. . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":630,"width":439,"height":10}},{"id":"0119b7c2-7b1f-418e-a28a-69c63c8c8dd6","block_type":"box","text":".........","page_number":40,"box":{"x":515,"y":637,"width":67,"height":2}},{"id":"c65338d7-9f5a-46ac-95d0-e455a1b4f4b0","block_type":"box","text":"$285,814 $0","page_number":40,"box":{"x":640,"y":629,"width":208,"height":11}},{"id":"e030cfd7-2316-4059-8711-e80e1fe384fb","block_type":"box","text":"Large Cap Index Master Portfolio","page_number":40,"box":{"x":665,"y":659,"width":193,"height":9}},{"id":"77c9ec93-7384-41e7-8db5-cfa8c0221b38","block_type":"box","text":"Aggregate Brokerage","page_number":40,"box":{"x":613,"y":675,"width":125,"height":9}},{"id":"07ae0e27-7833-4501-96e2-017a07cd05cc","block_type":"box","text":"Commissions Paid","page_number":40,"box":{"x":623,"y":685,"width":106,"height":7}},{"id":"080977bf-e6fc-4eb1-bd1a-287e100c3ed3","block_type":"box","text":"Brokerage 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brokerage commissions paid to brokers for providing Section","page_number":40,"box":{"x":101,"y":757,"width":770,"height":11}},{"id":"e9488392-ac76-49b1-a59b-cac7a16dded2","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":772,"width":814,"height":11}},{"id":"25f8f341-24d6-4e07-88d6-f188572453e9","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended December 31, 2025. The","page_number":40,"box":{"x":68,"y":787,"width":784,"height":11}},{"id":"a09174e8-1983-40ab-b648-85e4e564e53f","block_type":"box","text":"provision of Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage","page_number":40,"box":{"x":70,"y":802,"width":839,"height":12}},{"id":"ad5b3216-cac2-45fb-b411-6437c56ac0b3","block_type":"box","text":"business with such brokers.","page_number":40,"box":{"x":69,"y":818,"width":198,"height":9}},{"id":"24be20b9-0147-4e2d-bfa0-e350aac914ec","block_type":"box","text":"Amount of Commissions","page_number":40,"box":{"x":325,"y":846,"width":141,"height":7}},{"id":"a6657a5b-9a17-485a-9298-f710ac625a47","block_type":"box","text":"Paid to Brokers for","page_number":40,"box":{"x":341,"y":856,"width":109,"height":7}},{"id":"0445c99d-2041-4be5-b036-6ffa6a739cd0","block_type":"box","text":"Providing 28(e) Eligible","page_number":40,"box":{"x":327,"y":866,"width":136,"height":9}},{"id":"8225f1ba-ac1d-41b2-ae0b-e8f676d4c93a","block_type":"box","text":"Research Services","page_number":40,"box":{"x":342,"y":876,"width":107,"height":7}},{"id":"65d2307a-bc9e-423e-86d4-0ddc319bf289","block_type":"box","text":"Amount of Brokerage","page_number":40,"box":{"x":528,"y":866,"width":124,"height":9}},{"id":"f8e28de5-c14c-4252-a66a-93dbbc4e0312","block_type":"box","text":"Transactions Involved","page_number":40,"box":{"x":527,"y":876,"width":126,"height":7}},{"id":"7aff1c8a-0b41-48a5-95df-43ad85c59475","block_type":"box","text":"$0 $0","page_number":40,"box":{"x":386,"y":893,"width":213,"height":11}},{"id":"bc988a3a-e983-4b11-8358-6ec5f9dedf61","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ed4bdd37-f2d3-4a13-a3b3-f34d26bcb908","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fad12f44-04d5-47f0-b616-2b8aee2c7463","block_type":"box","text":"The value of each Master Portfolio’s aggregate holdings of the securities of its “regular brokers or dealers” (as","page_number":41,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"929ad4cb-bb7c-45c2-b1d5-73277aa36998","block_type":"box","text":"defined in Rule 10b-1 under the Investment Company Act) or their parents as of December 31, 2025, if any portion","page_number":41,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"49cc2ad8-65a0-4426-8fa9-63ffcbb487ec","block_type":"box","text":"of such holdings were purchased during the fiscal year ended December 31, 2025, are as follows:","page_number":41,"box":{"x":69,"y":75,"width":701,"height":11}},{"id":"adad8f18-9fec-4a9f-a951-8c453ec92aa2","block_type":"box","text":"Total International ex U.S. Index Master Portfolio Debt (D)/Equity (E) Aggregate Holdings","page_number":41,"box":{"x":68,"y":103,"width":841,"height":9}},{"id":"ec334b36-4cc7-49fe-b2b6-96f5807fba04","block_type":"box","text":"SG Holdings Co Ltd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E","page_number":41,"box":{"x":69,"y":121,"width":642,"height":11}},{"id":"2b3f18dd-1e8c-4af5-8110-8643594f4605","block_type":"box","text":"$193","page_number":41,"box":{"x":833,"y":120,"width":38,"height":11}},{"id":"a359bcf2-cba3-4eda-b257-6213bcfe6f2d","block_type":"box","text":"Large Cap Index Master Portfolio Debt (D)/Equity (E) Aggregate Holdings","page_number":41,"box":{"x":69,"y":150,"width":840,"height":9}},{"id":"25e424c0-1dbc-4da6-9ba0-8540697ccffc","block_type":"box","text":"N/A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A N/A","page_number":41,"box":{"x":70,"y":168,"width":796,"height":11}},{"id":"2c7f42e4-a8b3-4881-a121-452b5c47dc3b","block_type":"box","text":"Securities Lending","page_number":41,"box":{"x":68,"y":215,"width":135,"height":11}},{"id":"703377e1-73b5-4aab-bd6b-54ced4728a1c","block_type":"box","text":"To the extent that a Master Portfolio engages in securities lending, the Master Portfolio conducts its securities","page_number":41,"box":{"x":101,"y":237,"width":790,"height":12}},{"id":"983822b1-d108-4c7d-b9c5-bc607d98e2ab","block_type":"box","text":"lending pursuant to an exemptive order from the Commission permitting it to lend portfolio securities to borrowers","page_number":41,"box":{"x":70,"y":252,"width":814,"height":12}},{"id":"005e9b84-8fe2-4bc4-abe1-bac9b23bc18e","block_type":"box","text":"affiliated with the Master Portfolio and to retain an affiliate of the Master Portfolio as securities lending agent. To the","page_number":41,"box":{"x":69,"y":268,"width":837,"height":11}},{"id":"30291344-e361-4af0-81b6-9a2d29e87315","block_type":"box","text":"extent that a Master Portfolio engages in securities lending, BlackRock Institutional Trust Company, N.A. (“BTC”) acts","page_number":41,"box":{"x":69,"y":283,"width":837,"height":11}},{"id":"e953ec67-625b-4a37-8513-3b21f09d1a19","block_type":"box","text":"as securities lending agent for the Master Portfolio, subject to the overall supervision of BFA, pursuant to a written","page_number":41,"box":{"x":69,"y":298,"width":817,"height":11}},{"id":"191958a2-d53e-4d27-b864-7a8a38e5333c","block_type":"box","text":"agreement (the “Securities Lending Agency Agreement”). BTC administers the lending program in accordance with","page_number":41,"box":{"x":69,"y":313,"width":811,"height":11}},{"id":"d26ffabb-40fa-48db-9c2b-7b04f446f2d7","block_type":"box","text":"guidelines approved by MIP’s Board.","page_number":41,"box":{"x":68,"y":328,"width":259,"height":11}},{"id":"60711a2f-056c-4f33-a8b9-31496e15268a","block_type":"box","text":"The Master Portfolios retain a portion of the securities lending income and remit the remaining portion to BTC as","page_number":41,"box":{"x":101,"y":351,"width":808,"height":11}},{"id":"32278ad7-77ff-4a1a-8c6c-ab8579d02025","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":366,"width":834,"height":11}},{"id":"fd4d836a-2d51-481c-92b6-2c311677db83","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":381,"width":822,"height":11}},{"id":"984acdc1-9e41-46f4-8793-704522282bed","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BTC bears all","page_number":41,"box":{"x":69,"y":396,"width":788,"height":11}},{"id":"6a6bc7f3-3edf-4b9a-b9f4-b4f793901bf1","block_type":"box","text":"operational costs directly related to securities lending. Each Master Portfolio is responsible for fees in connection","page_number":41,"box":{"x":69,"y":411,"width":811,"height":12}},{"id":"8b354b91-9f4f-4ef8-abf2-a7d198fcddd8","block_type":"box","text":"with the investment of cash collateral received for securities on loan in money market funds advised by BFA or its","page_number":41,"box":{"x":68,"y":426,"width":809,"height":12}},{"id":"2e534bfd-2ba2-4be8-aa28-89d9bb34610e","block_type":"box","text":"affiliates, and such fees will not be subject to any waivers (the “collateral investment fees”); however, BTC has","page_number":41,"box":{"x":69,"y":441,"width":791,"height":12}},{"id":"4a9c389c-b481-4c5f-8fae-32629f4538ee","block_type":"box","text":"agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral","page_number":41,"box":{"x":69,"y":457,"width":778,"height":11}},{"id":"e5fb4757-257d-4f3c-af9c-7840d11e7090","block_type":"box","text":"investment fees a Master Portfolio bears to an annual rate of 0.04%. Such money market fund shares will not be","page_number":41,"box":{"x":70,"y":472,"width":806,"height":11}},{"id":"0d5e38f2-c721-4ef0-a05d-a072579684eb","block_type":"box","text":"subject to a sales load, distribution fee or service fee.","page_number":41,"box":{"x":69,"y":487,"width":385,"height":11}},{"id":"6cbeb890-0d10-47d0-a3fe-3ed6f0ceaba6","block_type":"box","text":"To the extent that a Master Portfolio invests cash collateral in a non-government money market fund, the Master","page_number":41,"box":{"x":101,"y":509,"width":803,"height":12}},{"id":"6ca4cd34-d4f5-4029-b1ff-c29e417d76fa","block_type":"box","text":"Portfolio may be subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees","page_number":41,"box":{"x":69,"y":525,"width":811,"height":11}},{"id":"3828045a-5384-4dbd-8199-db96cc64fbca","block_type":"box","text":"may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its","page_number":41,"box":{"x":69,"y":540,"width":836,"height":11}},{"id":"7264e70d-41f2-45ec-bfc7-3b488800f874","block_type":"box","text":"delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money","page_number":41,"box":{"x":69,"y":555,"width":821,"height":11}},{"id":"7e6cd463-0151-4e35-a2f6-f977691765ec","block_type":"box","text":"market fund. Additionally, a Master Portfolio will be subject to a mandatory liquidity fee if the money market fund’s","page_number":41,"box":{"x":69,"y":570,"width":816,"height":11}},{"id":"1aa4ac4e-72de-4627-92c8-d0b811ba0c1c","block_type":"box","text":"total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs","page_number":41,"box":{"x":68,"y":585,"width":817,"height":11}},{"id":"d8f31d38-c899-45a9-a34f-22e48495013d","block_type":"box","text":"are de minimis (i.e., less than one basis point (0.01%)). The money market fund will determine the size of the","page_number":41,"box":{"x":69,"y":600,"width":783,"height":11}},{"id":"a5ad91ca-8660-4019-869a-9b9492c1a8ae","block_type":"box","text":"mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were","page_number":41,"box":{"x":69,"y":615,"width":834,"height":12}},{"id":"72996af9-2f08-456f-b0de-bc435648d027","block_type":"box","text":"to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There","page_number":41,"box":{"x":68,"y":630,"width":835,"height":12}},{"id":"6198ca25-f5df-4209-a35e-10db5a2ad79f","block_type":"box","text":"is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro","page_number":41,"box":{"x":70,"y":646,"width":839,"height":11}},{"id":"6efbcbca-6783-471d-b66c-756af38a460b","block_type":"box","text":"rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity","page_number":41,"box":{"x":69,"y":661,"width":816,"height":11}},{"id":"d9ec4b2f-800b-460d-a8e1-cc25252835b7","block_type":"box","text":"fee of 1% on the value of shares redeemed on that day. The imposition of any such discretionary or mandatory","page_number":41,"box":{"x":68,"y":676,"width":791,"height":11}},{"id":"372a4aa2-1cc2-4727-bd36-fa8bc0a1ec0b","block_type":"box","text":"liquidity fee would reduce the Master Portfolio’s returns on securities lending.","page_number":41,"box":{"x":70,"y":691,"width":552,"height":11}},{"id":"c37d4631-4d8a-4809-9b51-61ed6f748708","block_type":"box","text":"Under the securities lending program, the Master Portfolios are categorized into one of several specific asset","page_number":41,"box":{"x":102,"y":714,"width":779,"height":11}},{"id":"6c51b227-e654-4956-a19e-ac7dc24e8459","block_type":"box","text":"classes. The determination of a Master Portfolio’s asset class category (fixed-income, domestic equity, international","page_number":41,"box":{"x":69,"y":729,"width":830,"height":11}},{"id":"ae933324-7b62-4e9f-a618-66fd24e916e3","block_type":"box","text":"equity or fund of funds), each of which may be subject to a different fee arrangement, is based on a methodology","page_number":41,"box":{"x":69,"y":744,"width":809,"height":11}},{"id":"f031610a-e2a5-41a4-b4dd-bf52a219e99c","block_type":"box","text":"agreed to by MIP and BTC.","page_number":41,"box":{"x":69,"y":759,"width":187,"height":11}},{"id":"d8f74e8d-6a0f-4530-9f73-106420a4b138","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) Large Cap Index Master Portfolio","page_number":41,"box":{"x":102,"y":782,"width":773,"height":11}},{"id":"d19882f5-102e-498c-b497-4e7aa6a5e4e2","block_type":"box","text":"retains 81% of securities lending income (which excludes collateral investment fees); and (ii) this amount can never","page_number":41,"box":{"x":69,"y":797,"width":824,"height":11}},{"id":"b59c5957-7f83-4aad-951e-35e359002ebe","block_type":"box","text":"be less than 70% of the sum of securities lending income plus collateral investment fees. Pursuant to the securities","page_number":41,"box":{"x":69,"y":812,"width":829,"height":11}},{"id":"3a440c98-978b-4e3c-9e71-c38d929977ec","block_type":"box","text":"lending agreement effective January 1, 2026: (i) Total International ex U.S. Index Master Portfolio retains 82% of","page_number":41,"box":{"x":70,"y":827,"width":805,"height":11}},{"id":"2dafe0a0-bd70-47e7-9647-38896c6ae45a","block_type":"box","text":"securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less than","page_number":41,"box":{"x":69,"y":842,"width":808,"height":11}},{"id":"327fd9c7-27b3-474f-a53a-266a62b7eaf4","block_type":"box","text":"70% of the sum of securities lending income plus collateral investment fees.","page_number":41,"box":{"x":69,"y":857,"width":545,"height":12}},{"id":"562ee5bd-c063-48f0-a18d-f2affc2cd255","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":880,"width":753,"height":11}},{"id":"3ec330b6-86ec-40d4-a904-4c0320fec91a","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, Large Cap Index","page_number":41,"box":{"x":69,"y":895,"width":827,"height":11}},{"id":"33dd6046-2867-43d0-bc6a-7941a842a625","block_type":"box","text":"Master Portfolio, pursuant to the current securities lending agreement, will receive for the remainder of that calendar","page_number":41,"box":{"x":70,"y":910,"width":833,"height":11}},{"id":"9f4dfbb5-100e-4630-8fa3-a86b237bd523","block_type":"box","text":"I-25","page_number":41,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cb35d487-e125-4163-b4ff-e1e5df1e1b45","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"153fb09e-445a-4935-93b1-322130f87e89","block_type":"box","text":"year securities lending income as follows: (i) 84% of securities lending income (which excludes collateral investment","page_number":42,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"e1609e1e-6aaf-4354-ab58-8c6cd9e3321c","block_type":"box","text":"fees); and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral","page_number":42,"box":{"x":68,"y":60,"width":779,"height":11}},{"id":"b9f20a80-6c19-4756-a873-8d8b46110980","block_type":"box","text":"investment fees. Commencing the business day following the date that the aggregate securities lending income","page_number":42,"box":{"x":70,"y":75,"width":794,"height":11}},{"id":"9aa7260e-a24d-425c-b6b9-1c419e5ad058","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds a specified threshold, Total","page_number":42,"box":{"x":69,"y":90,"width":750,"height":11}},{"id":"f6d40351-17e4-4ea0-973d-b53088bb8e34","block_type":"box","text":"International ex U.S. Index Master Portfolio, pursuant to the current securities lending agreement, will receive for the","page_number":42,"box":{"x":70,"y":105,"width":832,"height":11}},{"id":"6f135a34-0a6c-4692-8096-61e2d1f683c3","block_type":"box","text":"remainder of that calendar year securities lending income as follows: (i) 85% of securities lending income (which","page_number":42,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"579e8ce2-3628-41b1-a611-226ddb942709","block_type":"box","text":"excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending","page_number":42,"box":{"x":69,"y":135,"width":839,"height":12}},{"id":"1d2c244c-04c3-439b-b7f2-66983f2dca3e","block_type":"box","text":"income plus collateral investment fees.","page_number":42,"box":{"x":70,"y":150,"width":278,"height":11}},{"id":"ee173d84-c100-4a98-bd98-3a2d44a554ba","block_type":"box","text":"Prior to January 1, 2026, each Master Portfolio was subject to the same securities lending fee arrangement.","page_number":42,"box":{"x":102,"y":173,"width":775,"height":11}},{"id":"87eee008-d7f0-435d-94e8-54daf456c60f","block_type":"box","text":"The services provided to each Master Portfolio by BTC, in the most recent fiscal year ended","page_number":42,"box":{"x":101,"y":196,"width":654,"height":11}},{"id":"60df3994-0f8f-4b6f-8dd5-9ff2a65cfe9b","block_type":"box","text":"December 31, 2025, primarily included the following:","page_number":42,"box":{"x":70,"y":211,"width":376,"height":11}},{"id":"39160a8a-ad2c-49a6-92c1-75b4433f78e7","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent on","page_number":42,"box":{"x":69,"y":231,"width":832,"height":11}},{"id":"5b6eca22-2fd0-49b4-adf9-e595796c867b","block_type":"box","text":"behalf of each Master Portfolio with each such borrower;","page_number":42,"box":{"x":69,"y":246,"width":403,"height":11}},{"id":"d54f406b-9693-4e07-a840-b9a2e5d7831a","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":42,"box":{"x":69,"y":266,"width":530,"height":12}},{"id":"0b8b4d94-58f6-4e56-ad9d-7709f42e44b9","block_type":"box","text":"(3) directing the delivery of loaned 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Additional copies of the","page_number":45,"box":{"x":68,"y":249,"width":819,"height":12}},{"id":"b6e973ee-6d17-4761-816d-9c180b889094","block_type":"box","text":"Fund’s annual and semi-annual reports to shareholders and the Fund’s Annual and Semi-Annual Financial Statements","page_number":45,"box":{"x":70,"y":265,"width":838,"height":10}},{"id":"c17605b6-c39e-4834-ac21-a8f3a86012d3","block_type":"box","text":"and Additional Information may be obtained at no charge by telephoning the Distributor at the telephone number","page_number":45,"box":{"x":69,"y":280,"width":801,"height":11}},{"id":"18b4df48-4dcd-45e7-995a-79ab9ae57da0","block_type":"box","text":"appearing on the front page of this SAI.","page_number":45,"box":{"x":69,"y":295,"width":279,"height":11}},{"id":"ee66ca23-a140-4a7a-b147-b3beacbe740d","block_type":"box","text":"I-29","page_number":45,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"7da882e3-b5c3-4f77-a498-211b447a3e42","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"91de94ee-f0df-4b25-a7af-323765b37c9f","block_type":"box","text":"PART II","page_number":46,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"6ebeb75e-11d6-4cb9-a5fb-4f36e5affe8e","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":46,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"7f5c95ec-85ff-4ab7-9e6a-38ac58cbd510","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":46,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"71ed1ce0-5879-4f5b-a641-03d848db4df6","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":46,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"1becf425-d515-414b-a4b6-6b33db67c7b3","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":46,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"40d33391-3905-4410-82b7-65d42cd7e581","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":46,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"25cc0233-e25a-4409-802f-49264924d479","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":46,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"8f50040b-78d8-45dc-8077-77c26a63528c","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":46,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"3039444d-9e6c-4e87-91c5-8895cbdae326","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":46,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"a3f66f18-882a-4274-b744-6abbf109ca84","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":46,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"9c933c8c-154b-4c9f-a985-ca41d76b616a","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":46,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"e0d7f87b-8b2e-425f-9498-2d4477710a63","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":46,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"f1ab9cc6-24ab-4ac0-85d4-ab95b3bff520","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":46,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"27f3ae6a-b9ed-4097-b633-f06c18c14df0","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":46,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"dbd20e95-8117-4234-9461-6260e5d1802a","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":46,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"a7a6d7ca-60c1-49ea-9375-93bd0af3f700","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":46,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"8b4eced0-33e6-4149-8cc2-5d5ebfbafd22","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":46,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"a351fab7-91f6-4929-b161-91a52e88179f","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":46,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"47bc44e3-14af-4dda-b3da-cb35926b9344","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":46,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"d7d02f3b-bdec-4363-b48f-6e2f7bf2f398","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":46,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"16dd0f23-b498-49e8-a00f-141df491975f","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":46,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"aaccd3a3-bd17-4bdc-9fb7-69f5347487d4","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":46,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"e64d8e59-f1bf-4514-867f-c1a931be77c3","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":46,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"523d7a0b-7772-4455-9477-2b7c0cc3dfa1","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":46,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"47c3557f-4bf6-4f49-b3c3-7231c395d1e9","block_type":"box","text":"particular Fund.","page_number":46,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"06a18315-9e2d-4a7b-aecd-da293eb295e0","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":46,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"168be4d9-185a-4f01-aa85-570fa2e166bc","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":46,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"11f5e3fd-acaa-4c73-99d6-95dff1a937f8","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":46,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"ae683d9a-0e42-4fd6-9ebe-90abad547738","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":46,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"9e719aad-6407-4e7a-934d-85c4cc05a06e","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":46,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"7baac7c3-e4bd-42c1-a151-a333ddad6fa5","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":46,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"ad110403-636b-47d3-8f60-ba8d9881f1c7","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":46,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"ead9b267-9869-411c-900f-0fe8366c781f","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":46,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"112499b5-3400-45cc-aedc-51b30d7692f3","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":46,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"db927348-de17-4fec-a0c1-f4272efb3403","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":46,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"9fb4b056-f8c9-4e82-ae8c-5100828f2265","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":46,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"8e193390-6f7b-4b4d-85db-97cf12cbccde","block_type":"box","text":"Asset-Backed Securities.","page_number":46,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"966bb97f-f5ed-4b14-a7fa-8a34c74ad9b2","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":46,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"cea88a24-bd14-4d28-bc80-ae5b43984ee3","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":46,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"17d136ee-81a2-4adc-abb2-5cb0f54fed9f","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":46,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"890cdc88-784c-4945-b0df-46e9d1a22192","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":46,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"ccbd8da0-ce86-4b51-88b7-6be2bf60178e","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":46,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"cd416fd9-c9dc-4e4f-a0e1-0a2f465ec0a1","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":46,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"8e452e4c-ad8b-4e0b-a482-ab8a98364ef1","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":46,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"a1341a33-9bdc-4078-99af-654f421dc84a","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":46,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"514d2f81-7954-4507-a8c0-f7b7ced6ac32","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":46,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"703e7ff6-434b-4736-a2eb-d8630df7d316","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":46,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"161434ae-05a6-4735-a4d4-b2d12b5a2357","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":46,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"16f77a3d-c3d1-47a7-955c-eafdabfead2b","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":46,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"82b1c732-594c-4389-9e86-5ff58e870a6b","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":46,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"c9a3b16e-1359-4c6d-bb3f-4a096dfe83b9","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":46,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"88f65ddc-357e-4ea9-912e-d6038e4fc758","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":46,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"e486c441-1369-4eb5-a306-2efd0d49f2aa","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":46,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"315538e6-bf40-4113-98cf-c32b3ca2c97f","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":46,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"3e7f5216-4dfc-49e1-bd80-a630bae14c3d","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":46,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"5ae17936-cb79-4671-a3bc-8fff1f7b3f43","block_type":"box","text":"II-1","page_number":46,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"90c34d02-8c29-4810-aba6-84c873d11d1a","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61b43125-29e9-4fb0-9f68-3dc44f69ff31","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":47,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"2cf42b62-bc55-4c77-995a-abb4b93136a5","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":47,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"11b37512-a26b-4449-a048-1bb460a61fdd","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":47,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"ab5ebb4c-cfe0-49e4-945e-2170676953ef","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":47,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"f8cb2230-584d-4243-9b64-cbd52ae17c56","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":47,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"733951a3-5159-43e8-b994-a58c427a82d8","block_type":"box","text":"Asset-Based Securities.","page_number":47,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"c8a9fc8b-310f-4929-a543-7823340d65c6","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":47,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"aec088e1-379f-4977-8ccf-e0cf28759f2c","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":47,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"9bf5172b-bf8b-4f1f-9dca-efc868a54617","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":47,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"16e710d6-239d-4fd2-b4f7-e73b23a04054","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":47,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"8f061eb7-1866-4ba1-8a86-c2d15e2aa1bf","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":47,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"d50454cc-678c-46e8-a5f7-e572b024d878","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":47,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"67bbc20d-0262-43dc-8c90-bc429df0059e","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":47,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"654ae067-175a-4a4a-aa96-3a098ddc42b6","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":47,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"85a3a2ce-6543-4ef7-b070-8e6e6e966e65","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":47,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"f7b360de-97ef-445d-99dd-f2779b566c81","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":47,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"2a097971-75d3-4a21-88cf-8835773e9c59","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":47,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"b4867b34-aaf5-4370-bd76-8c0f183fa765","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":47,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"9d11fda2-7d58-4f68-b7ae-e68bcef0bc64","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":47,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"1848cd64-bb62-4ef6-8246-f8984ad64f36","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":47,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"4698cfe4-7dac-4636-adcb-0b56c40118aa","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":47,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"d888d34a-5503-4cef-b843-bcd63b9d9d4c","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":47,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"08694553-a786-4d73-9099-cbd264c8dada","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":47,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"e4811a6c-972b-4a2c-bf72-e365c424f63e","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":47,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"44cf4ccc-943e-4b1b-9271-8eac5b824c09","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":47,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"6e5405aa-c495-446f-8dc6-d14a151bdf5c","block_type":"box","text":"appreciation in the underlying asset.","page_number":47,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"c814ca7b-be63-4e42-a91b-d83424356a09","block_type":"box","text":"Precious Metal-Related Securities.","page_number":47,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"7d01106d-fe9e-4f05-9dc9-d5a7eb37d9a4","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":47,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"1cc8d4b4-a17c-4898-acc1-f07d34f4b69b","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":47,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"53cff547-3b55-4b06-9120-a7de46118d72","block_type":"box","text":"e.g.","page_number":47,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"89793f7a-4cac-4410-abf6-20bdd1fca40c","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":47,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"5a268a28-5f79-4998-b1e4-5d7854aac0a5","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":47,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"24cb06f2-9cf1-4ce7-a3d2-f4482ab76ade","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":47,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"7775b338-5cec-4033-9a4d-e35bf53a13c3","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":47,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"20f55c06-7dd3-4f69-b8bd-68be3492fa42","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":47,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"e1dc307d-f081-43e9-9a6c-f9ded89e18d0","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":47,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"58ed150e-278e-4b02-ba92-d0b26f45d545","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":47,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"9a85032d-31c4-4530-a55d-e3e56e5ae2db","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":47,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"11b94b8a-18c3-47fc-a7c4-c0d6cb8b31bc","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":47,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"d940bb08-ce6c-42d0-96dc-2a87dee16ce4","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":47,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"3428ac9e-4e17-4067-b92e-935b6395c4da","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":47,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"fcc8a752-2338-4c7b-8825-995bf1588626","block_type":"box","text":"South African gold production.","page_number":47,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"60c518d5-783c-4b0d-b089-b1826c33291d","block_type":"box","text":"Borrowing and Leverage.","page_number":47,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"70d79d69-fdbc-403f-9f91-76e86c37db66","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":47,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"5542c525-a55f-4ce5-a792-ac2e265ae4d4","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":47,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"4de4b9bc-8e97-4c3f-b6c1-bee76837581e","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":47,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"495dd305-7b0d-4bb4-b8d1-173ba6b4e7ab","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":47,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"0f026993-a2dd-4adf-8c88-5b2c62beedb8","block_type":"box","text":"other securities transactions.","page_number":47,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"3dd9bc08-259b-4c1e-adc3-eeaea6e49cdf","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":47,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"9c16617d-da29-4bac-b403-c9aeda0bd59c","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":47,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"4115ec5d-9b86-425e-b86d-9cb20287a1f1","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":47,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"35a3cf57-f3ac-4c7d-bdaa-0bb083434e00","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":47,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"fa305970-d8b9-4234-a567-c5d2024fa3ea","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":47,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"339212f8-3d12-4910-bc0f-f22c1a49a2c2","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":47,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"1ed8d162-93a4-4d3f-a014-27e4808c6c8b","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":47,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"9b525a12-370a-48b9-a1ae-15e09b40484c","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":47,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"5eee9deb-c1f3-481e-88e0-d9df37eb9720","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":47,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"72e78ab9-b0f4-40be-8882-cfbc0f39c675","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":47,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"3fdd48d2-cf07-4d54-bd30-ef18bd8fa5e0","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":47,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"a367c3ef-b6a2-4dbb-a01d-96c40cf89bed","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":47,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"761bbee3-9416-4720-b208-57c1f35e5ca2","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":47,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"e0a86e8e-5edd-449d-a5ea-f4451f50b8db","block_type":"box","text":"II-2","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a0e29471-aa45-41b7-a756-b0155aac6c06","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d75033aa-f545-4fbc-a8c0-8aa35ab623d8","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":48,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"561f8ca3-b5a3-4de1-b4c1-e65bd60d9110","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":48,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"4dd0dd1c-962e-4151-98d7-fe54bad0e074","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":48,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"9a48e0f2-45d5-4f0a-af33-18167ff99228","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":48,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"9abfef4f-6e95-46ef-b999-f73d2d358d0e","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":48,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"16f946d6-d581-45b9-83f9-b3e237994bb3","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":48,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"f3758e42-31cd-4acd-aba8-5501ad19a887","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":48,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"888994f8-d7ce-4b9a-aade-e85a8c021cd6","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":48,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"f697ac94-4ce7-4f1d-9287-630ea16598f6","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":48,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"6ec7d641-6de8-4cc7-966d-ddea123aa55a","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":48,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"3d4c4ef2-082d-43fe-8fe5-d885474644c6","block_type":"box","text":"Cash Management.","page_number":48,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"3fb167ad-b1f1-43aa-95c1-c46b7afef40d","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":48,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"e8d5d4b9-e093-43f0-a39b-3b7fa2486962","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":48,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"c4b88f61-991f-4e71-bccc-d3150dbb0ce8","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":48,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"50c1653d-9ac5-4b60-8446-70fdf44d7db8","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":48,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"7eeae987-2158-4039-ab5f-297604b3fc45","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":48,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"3037ce89-7c5f-4381-b542-edaf5e67a825","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":48,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"a5ffc404-8132-412e-8f94-3ed8d5b8151d","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":48,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"06ca0a5b-e76d-4abc-84af-5f19b1f4202d","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":48,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"7b32f33f-f403-40b4-b160-02296bf77e30","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":48,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"456634c7-1606-49d8-aba4-4bd8220dc189","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":48,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"e62ae20d-40a9-4fc3-8e86-9376b7d90c2e","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":48,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"cd413c42-7937-46c1-a247-cf28db284079","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":48,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"5b1a6a98-5bff-4398-b74c-a52849d2585b","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":48,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"97c62283-a999-48ee-9543-66aa701dde09","block_type":"box","text":"Collateralized Debt Obligations.","page_number":48,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"25351493-dcbe-4ed0-830f-77ccec221170","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":48,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"cc1f706d-7a95-4a7e-8903-f2a79fd46317","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":48,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"aa3e01a9-e181-4f73-871b-4dd5bdc6f7c8","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":48,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"55667614-b053-423d-9477-78398d452265","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":48,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"9d170f3c-a182-41ad-880b-306d93ba4102","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":48,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"7226bed9-a5e2-4400-b47c-122bf7d7fe73","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":48,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"030ce607-8016-44d3-822f-cafe13d34208","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":48,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"7ac9b6f6-bc8e-43bc-9da1-a54b8097a515","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":48,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"7d912847-08f0-4f33-b361-15b4063d98c3","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":48,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"c65682e2-ee1f-4f8e-a421-80ede53d3ccb","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":48,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"67151ea9-0fd7-4504-bc3e-4231c211e9cc","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":48,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"734a1ad6-ecc2-4cdd-a638-bdea4651c670","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":48,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"0519cd6b-981b-4c88-80df-0049527008b6","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":48,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"abb99d38-be41-4f07-9857-1a8a5cd7eee3","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":48,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"2a3174d0-2031-4829-8e99-98453835c14e","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":48,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"19ae721d-bf8b-4608-9fd6-69249026a815","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":48,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"db9ec916-247d-44d7-a796-e921a14ae5b3","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":48,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"e56edf70-b0d3-47d8-bfe5-28fdc475b339","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":48,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"9a0e3973-9179-4393-af70-fb25ac89ab7f","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":48,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"26184f54-dc42-485a-aa7a-c539385474c1","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":48,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"5cc7e947-bae9-4056-b521-1e82803bc56f","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":48,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"2f7b1de0-63e5-4d76-8908-87bcd5333f15","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":48,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"872208d1-660f-497e-b4c3-adb3ff6c38ab","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":48,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"59209f68-4ed9-4d5d-b976-464a6cb2a683","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":48,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"850c89e5-0f52-4e47-9fda-5130946af056","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":48,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"e1644953-f07d-49c5-b786-de3f3aa2b8bf","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":48,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"4cb594be-605f-4f45-b1bc-5914961be206","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":48,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"64b10ead-142b-4cc1-88bc-68f9c76fa4c2","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":48,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"d313f8da-f420-4f10-a6ab-834131084c33","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":48,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"f68a59e2-dcc0-4d73-aced-1d3279b3c0d8","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":48,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"5ffed183-f212-4bd3-9ef8-d99501d7ac33","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":48,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"00760229-6cb9-4dc2-8d72-e11a6f088109","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":48,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"888c5ffd-1af3-44c1-a6d3-0216f454977e","block_type":"box","text":"II-3","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"72a54994-cde7-41f1-b41c-3f3621294b3f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a0f6fa8-30ca-48f2-8dfd-ae3bc78f85eb","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":49,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"27198e59-5ecb-4b32-b826-0439a79690ee","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":49,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"29d9fd93-f0f7-43ab-bd19-fbe39324e57e","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":49,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"1252b434-331d-480b-8efe-3155016aa412","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":49,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"95d0d793-eb94-4269-92cd-aff027df1d57","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":49,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"79905e19-a2b0-4494-a2b0-4de32231e7a3","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":49,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"ccc7f538-10ad-46d9-a8d0-320bf4f18ee4","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":49,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"c8df4365-fa47-456b-9f72-a4d5a22a45cf","block_type":"box","text":"Commercial Paper.","page_number":49,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"637037df-4e01-422b-b3d4-e49982ec0a9c","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":49,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"fd6be808-a19a-4002-ade6-8923ccef5793","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":49,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"8fb62130-702e-4d25-ba26-30fcd3db26e6","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":49,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"d956be91-b127-4646-b75c-38df970d2a2e","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":49,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"8de8c27c-2bf9-4a94-b96e-f4decd78d674","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":49,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"31336ff4-fa44-4d5b-93a1-faae2ba2401f","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":49,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"99224839-1a12-44ee-9d95-874053b0f793","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":49,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"a342d364-c493-4bcb-b633-beed3f8e4a63","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":49,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"4627af56-5a17-4bca-8f32-e9a7cac2e421","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":49,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"2649871c-ceb9-4726-912f-176bfac8cd9e","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":49,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"6b41548b-5e83-408b-b457-3fe666c83a54","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":49,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"a2126f90-2165-49fb-863a-edc390da4684","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":49,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"6359cfed-4aeb-4690-86c4-5b4f632a1e38","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":49,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"65294cf5-6ad5-4a3b-8314-cebae038dfbf","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":49,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"203ddc14-6149-4cd6-9e29-49bf8f2027aa","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":49,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"285fe636-af06-46d5-b24d-6ccca31ef7a0","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":49,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"29383a91-4ea5-4f50-9125-d5c9c2eeea15","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":49,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"688baa79-4d37-4972-baad-5d5a2ec70168","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":49,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"0829d65f-be00-4cf5-8853-f39ee6fa23f9","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":49,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"7567c466-ac58-4697-a67a-37db03678edf","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":49,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"54bf9ae0-137b-4b57-a17c-fa731033954b","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":49,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"208d3d58-3613-422a-a6b0-c0a300de7761","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":49,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"2ef8c487-b28d-407f-9978-5ed31f16d70c","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":49,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"9b7e452d-0f13-471b-becc-1a3bf862bf5b","block_type":"box","text":"variable.","page_number":49,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"fedf6160-0b5d-4afe-9ce3-11688dd83198","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":49,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"cf8ceea1-bf4f-4a61-95f4-213bfbdbd37d","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":49,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"37a451d8-2da1-4908-807a-b55f83a8b122","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":49,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"9ac46c73-15d1-44a2-82b9-476fffd3a22a","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":49,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"e20fc4da-1dce-4f23-9ee6-fff62f7278a8","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":49,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"58e5053b-1b63-4171-a2a5-cf9fb99ca80d","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":49,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"28fd122f-4736-4165-b642-f5b3ab30cf95","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":49,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"3de6d1b6-1cbd-45d1-832c-c59f3ec5de42","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":49,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"c78fe299-e23e-424e-882c-e3a1e5ca852d","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":49,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"766fa16f-154b-4df8-b2fb-4962bb75ab8d","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":49,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"2cac8f0f-201d-4f1c-9d62-245d002b4706","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":49,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"be622b35-cd68-4470-abd5-0ed37ae2160a","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":49,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"ad42493a-3b6f-41cb-bc5f-0be30c7810ea","block_type":"box","text":"correlation with stocks and bonds.","page_number":49,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"1f48bb59-fdc0-4050-b0c1-6689be793950","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":49,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"8b3259ee-5d52-4487-a571-c5a440bd9c2e","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":49,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"a9abbce4-f200-44c4-bb1f-234aaf4d0bfb","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":49,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"b60d42cc-581a-464f-9397-229a8c5a480c","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":49,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"6e16b0bd-eefe-40e4-a42a-a196b98acd87","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":49,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"11f445ea-d6e7-4f8b-af2d-73bbc83ce749","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":49,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"973d2d1d-8b68-488c-b1e9-2a21f450c479","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":49,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"ddaea13f-0e68-40c5-ae98-622e50ac6908","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":49,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"eb9b06b3-8970-4444-b92a-33dc89458ed1","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":49,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"8d0ae65f-da13-4824-acae-2a0c174bbca6","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":49,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"b180f027-7870-4ef4-a9fa-fd721ab32729","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":49,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"d6439c75-d884-449a-a0a6-a055d5015cad","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":49,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"83148f99-b0bd-4faf-804d-4adcc1fc9e08","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":49,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"c6fb339c-9b66-4ab9-9d63-8601bd666ced","block_type":"box","text":"II-4","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"46553202-61a6-4cba-bd51-6a3c9dda05e0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a36e5af3-4ff4-4397-9bd7-1ccaeeb71e41","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":50,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"1df03a3e-343e-4c5b-a844-0f2b4ea6e16b","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":50,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"6a7872dc-9b2a-4e07-b82f-df40d9135ea3","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":50,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"6a527c75-72c8-4180-b55f-9dfb4e685e35","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":50,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"7f8dbba5-c790-4aca-b225-9ac84e78bb40","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":50,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"3301c93d-72c6-42d4-8552-1e76b5d7a444","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":50,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"37946550-fa74-4fce-8786-9994e3900c3c","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":50,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"39a25179-881d-4822-954d-47b28dd70820","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":50,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"6e8868b2-db5c-4ca5-b0f1-84df8deae263","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":50,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"528be39a-23a1-451a-908a-5538d33f1a1f","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":50,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"0bbc1f04-327a-4412-892a-7716834a2578","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":50,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"7a8d61ef-d57c-46d4-97f8-d8c7651a9d31","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":50,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"b4037d21-28e3-4474-9ad2-8c4b64ebfc2c","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":50,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"7319954a-34f6-4769-ad46-e40bd8c23149","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":50,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"c2f4129f-ed5f-468f-8352-9b76394f14d5","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":50,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"46c39796-873f-4bb6-92c5-8d829e33ee25","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":50,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"59a08e1e-020f-4166-865f-eae5780469f3","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":50,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"e8f73ef8-6c1e-48bd-9aaf-25541f6aeb25","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":50,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"e57e3c64-8ce0-457f-b413-4f0c35d9d7a9","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":50,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"5d4cdc2b-27c0-4e91-9910-95646cdf014a","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":50,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"5e9bf470-5e7d-4a13-84b3-4c0b2d6378ad","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":50,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"48735ce2-9cf5-4538-a95a-534a556004ed","block_type":"box","text":"the Manager believes are relevant.","page_number":50,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"83f1e71f-c5ce-48ca-995d-2f0fc6f0e901","block_type":"box","text":"Limitations on Leverage.","page_number":50,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"b8b1567d-b220-4d4e-b400-06bc7dc53bb5","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":50,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"58343055-7c6c-4d71-a147-7c6a61b2d8bf","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":50,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"a5b129b9-a69c-484f-bd49-9c2d056c056f","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":50,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"6e16d2d5-5477-4d3a-9ad8-6a7f72369321","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":50,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"d89c595b-d126-40ec-961a-0ec61a45a76f","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":50,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"8bf8dc16-8ded-4c79-88b8-211f92e780f7","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":50,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"2f8fc5f7-7261-44ae-8c36-973d08f77f3f","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":50,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"0c7eaaf9-3583-4ede-8b3d-5015f7effab5","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":50,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"e590c846-cc96-4619-9f15-bc1fb3a8897b","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":50,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"d2aa97a0-5253-4027-93c2-2d26abbf6a05","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":50,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"f864962b-a049-42a2-9a65-d5a77a3f48db","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":50,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"1c66466e-84e2-4095-8534-6254228f890f","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":50,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"617713bc-f472-4437-85ab-52edba30ac0c","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":50,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"c930a1ae-2bd1-43ae-8d6c-27391e59b85b","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":50,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"cc302587-2fdd-40df-a6e2-350f0d1130e9","block_type":"box","text":"Counterpar ty Risk.","page_number":50,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"16326152-7285-48be-be98-24a41d374a6e","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":50,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"1384a999-ef05-4bb9-95bf-95c4ae42fa33","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":50,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"13a4bd39-d92d-4b4f-a03d-0abedf820d62","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":50,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"e760b126-490c-480f-aecb-730ae9867e69","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":50,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"56964905-afb6-49a9-80d1-99a1f1557803","block_type":"box","text":"e.g.","page_number":50,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"030ce658-f115-4a26-9b49-f38d6e4e37a7","block_type":"box","text":",","page_number":50,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"1150a026-2de3-4eff-9d7c-2390ee3f9f0a","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":50,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"e691e83b-f516-45dd-b40d-9fdb5cf90575","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":50,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"7cdaa323-b215-4a1a-a2a3-13d251a4fa81","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":50,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"cb90568d-bf8c-47b7-a6e2-bd6259effc71","block_type":"box","text":"obligations under the structured note.","page_number":50,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"8b4db5fd-59e9-478e-8771-6b13a1700b05","block_type":"box","text":"Convertible Securities.","page_number":50,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"fe5c6237-60b7-441d-a7ca-48a0aaecbef2","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":50,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"404c26e4-b8f9-4196-b61f-ed3940ab6a7f","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":50,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"b35b1b2b-7d26-4eb8-83fb-b548b50eb120","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":50,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"66e22eee-e39a-49b9-8ad1-6148b514e5a5","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":50,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"481f15c0-c8bd-429a-b206-90906dd6ef40","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":50,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"731a786f-e893-42c4-aa26-586050e7abcf","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":50,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"e47f2962-2787-4a2c-8748-07dc2a23f7f7","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":50,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"cc45c147-b8b9-461d-af6e-fca88eced8c3","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":50,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"a55fbe78-6cd6-4eca-82f0-3ad27b6c5ffd","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":50,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"a0ed21b3-0644-4509-8db7-c49eea4811c6","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":50,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"c1cd6e93-ef27-43cc-a8e8-f4110b7f1a06","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":50,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"66ac2efe-9c66-43c8-a819-fbc0dcb2570f","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":50,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"7cfc07d3-b0a5-4e78-ac07-bfac3691351d","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":50,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"f8c43843-a9a7-4648-99ce-7e545e3639e5","block_type":"box","text":"II-5","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"e842a15d-86ab-4f1f-b465-816670706687","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79a14340-a326-4eef-aac2-a6e4adaa6591","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":51,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"3ec972ed-c751-409a-b400-9b031bd00fd9","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":51,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"e3423ff8-2db1-4cdc-998c-14387474d13f","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":51,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"0bbac6c3-43c0-4f18-a912-f69ec52c346a","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":51,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"ff803c8b-64c4-4d93-8b4c-0e9215438d36","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":51,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"2e85ac52-4cab-4daf-acf1-31780cf8cd3e","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":51,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"5ae975ec-ef1a-4250-861a-35245940b4ad","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":51,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"c76172b5-a49b-43e3-8bad-451809d54338","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":51,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"df46096e-3ece-474c-a024-b71c8a0042cd","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":51,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"90cd49dd-fc4f-4003-99aa-fff34fd24afa","block_type":"box","text":"things.","page_number":51,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"450d27c9-7af2-475f-b4f2-bff5fe55b629","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":51,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"ca4d1569-70f7-4d2f-b8ce-7df84fc7d9b9","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":51,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"f90fa205-ad3e-4fed-af98-20268ad6baf5","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":51,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"f50975c4-8a10-4308-9600-a146952646d3","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":51,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"92b31688-0337-469e-8069-4ca229c547c6","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":51,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"d6f24143-d80e-4c17-af8f-b90aa0e6bcd7","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":51,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"4e942840-afbb-4027-9d17-72c7efd85408","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":51,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"6fab2a44-9b3c-4ac1-a832-2df3bf2dcc59","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":51,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"9318dd2f-5e51-4c4a-9b41-e6739ec6aec0","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":51,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"7c44e693-bb21-493a-9601-efe42a33b6cd","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":51,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"1cddbf7a-4086-4b6b-9d61-151f8f2d7589","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":51,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"a916c510-2ca8-43c9-9223-e64d0579b1ad","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":51,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"3be5a353-4185-4c43-88d0-1cfe2d4af0ea","block_type":"box","text":"i.e.","page_number":51,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"bf293717-0316-41fe-8041-10210413dfbd","block_type":"box","text":", strictly on the basis of its yield) is","page_number":51,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"927dc80b-77a9-4db6-9df5-6d84c02e6052","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":51,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"cc200093-fc61-49f0-865c-72b919290775","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":51,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"905cd077-909c-4139-8d0b-624986e1003b","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":51,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"2069bfb4-b464-4a76-9017-4e5157d17713","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":51,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"037e08ee-fe4a-4be5-8716-be2e4264a1d2","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":51,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"1b1fe5b7-a480-41bb-90e0-7c8cb099cc80","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":51,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"368ed85c-e4f8-473c-a289-d83c9c8e4425","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":51,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"1d332685-fac7-485b-b6d0-3aaa87468f40","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":51,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"528155e2-bfad-47f8-ba50-867b469458e8","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":51,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"c4e02197-cdcd-4db0-9e37-4536013321d8","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":51,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"a48a25d6-e4ed-4d1c-9fa5-4e7a119c50e3","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":51,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"814dd09a-adf7-44ae-baac-96ee2589bd8a","block_type":"box","text":"than the securities’ investment value.","page_number":51,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"d997b1f7-6c41-465d-8f1f-d9194730851d","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":51,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"2393323f-0030-435e-854e-55d99c877ee3","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":51,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"7c047630-f025-4294-828a-084dfccbe488","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":51,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"89f9684d-b2c8-4fc0-968f-c037ae18f6b4","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":51,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"8bcc58ad-45a7-4eb7-bf4f-660e0661b633","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":51,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"b026d9cf-6e2a-41d0-99d3-59ee0ce858d9","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":51,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"7e8fa320-94a2-4e40-8ed6-befe1f05f618","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":51,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"995115db-1ad4-4240-98a7-fa78c9aff6dc","block_type":"box","text":"security under certain circumstances.","page_number":51,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"ef012693-3c3f-449c-b17a-144f8141d261","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":51,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"8cf1ea94-acd3-4441-86f2-e8023da3a60f","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":51,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"2b2440e8-8595-4fbf-bb90-131563ac00b9","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":51,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"9d43c34c-79b3-4b27-8495-4401f326e707","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":51,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"193f7848-9137-40e3-904b-5210cbfac3ef","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":51,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"f964c022-6552-493a-b09f-55c5761f319b","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":51,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"a710b7d4-05dd-47fc-b0af-4fb074baa157","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":51,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"d8b3d36d-32c3-4056-a85b-6f77bfccd508","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":51,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"3e1a58d8-0312-4da8-a3c6-664780d0f4de","block_type":"box","text":"i.e.","page_number":51,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"bc82931b-af30-4eff-a47f-69b7ca2ecd20","block_type":"box","text":", fixed-income (“fixed","page_number":51,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"4eed579d-8398-437e-b04b-b0be5769c417","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":51,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"91ca4be4-e960-46fb-9900-60c5ae81f643","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":51,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"c2dbb351-dcc9-4c1d-9ae3-8434487fe8e9","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":51,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"53efcf5e-f08e-4f7f-90b6-f9676077498e","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":51,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"a026e1fa-35f3-44b8-9649-9364dc433220","block_type":"box","text":"II-6","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2fd5089b-a58e-47d7-8eff-52429b3327b4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f1419ca-f708-4916-81ea-b155883db005","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":52,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"5b83237e-15ac-4da2-86ba-7f551ed8ee69","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":52,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"15820e82-2568-443f-9596-ecbc30754bdb","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":52,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"57b97245-a4e7-4fbd-a631-dfa63ec2a69b","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":52,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"a92afb6b-c7e5-4dc7-a743-214d6260490a","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":52,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"f1faac7c-f0bc-4e55-81ad-37c298ce0691","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":52,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"ad302d4c-f642-467f-ba89-02f9a748f188","block_type":"box","text":"component.","page_number":52,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"117fcc68-46b6-45f5-b438-d1670c18c06c","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":52,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"b939c65c-627c-45c2-bae7-8d2c98db4abc","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":52,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"8c84c72c-897a-4584-b507-a4ae25a15972","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":52,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"f5803938-f350-401a-be5d-44da79480b1f","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":52,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"4f13313a-1786-48e3-ba8d-8aa202530371","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":52,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"2895cb1a-36fe-4bfe-ae79-3ca9ecbf1816","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":52,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"a7705388-4a5a-4667-b60b-938e717aad06","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":52,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"8bf74084-8081-4125-bbcd-5c7d13e54c94","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":52,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"a7fa4848-c2b0-42fc-9fb8-ae9bf664083b","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":52,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"a2035cba-6b41-43af-8b5f-e329cc47d132","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":52,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"595eb936-43ff-4f15-971c-b155437a6bc9","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":52,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"1a0486c4-a417-41e4-b76d-905277961949","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":52,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"6f8aed33-aabf-4d30-a9ad-e07732cabb77","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":52,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"1b5d0d60-eb86-4338-96fa-61abe7fec8a7","block_type":"box","text":"favorable market conditions.","page_number":52,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"1ec99a08-e9bf-4b5e-b768-95f955ec099a","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":52,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"a5a37536-30a7-4f28-b801-69a216e7bd35","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":52,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"d5755f7f-70f9-4631-8d24-6118a8ae9396","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":52,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"f0a19274-3d0f-4c68-97d3-0981c47a52a3","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":52,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"336c9c20-f3f4-4d0f-9933-23919bb459c4","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":52,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"55d25198-4fb0-4f29-996a-74f92a34284f","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":52,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"f248f4f2-b3db-48b7-9702-b8823529f650","block_type":"box","text":"Corporate Loans.","page_number":52,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"e7fcb13e-d17d-4972-bbae-5faa8752cda7","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":52,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"98f7ffc0-1b27-4b8e-9b53-49ac4b9d6b93","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":52,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"14819f69-b9f5-48cc-8bc5-544fced3a7b1","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":52,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"95e33d1a-eb2b-4f65-aa36-bc2202035f23","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":52,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"9c1d69ae-766f-411b-b812-84639368408c","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":52,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"cde6bd64-5805-4180-b579-ab7c6b94d5e1","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":52,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"0b76f24f-dabb-49d5-b980-68dbf269b4cd","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":52,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"ff7d3a9e-3509-4638-9f44-860101f3d573","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":52,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"c059077a-4670-4c42-a10f-4ed4b6bc945c","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":52,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"c6acb4e5-5aaa-4c2c-988d-66d4a8a285c6","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":52,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"e9759b51-8e04-4932-abbf-ee891ab009af","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":52,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"5808677e-1664-4144-b2d2-0a9808769fe8","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":52,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"c7bf1fc6-e689-42e9-bbe3-bb221fcbed2a","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":52,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"9fb1eefc-6587-475b-933e-83f40979d24c","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":52,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"249ad9d3-fa12-4c6b-9fba-80347ca8dced","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":52,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"b604cbe1-2adc-48c4-a74f-cb31fe81536e","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":52,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"44fd0d3d-bb86-4081-997b-0951c3e3861a","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":52,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"d80e2b48-e850-4dc6-b463-e3d13a419cf5","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":52,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"8952b12f-75b3-4100-a852-4049cc5a8798","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":52,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"b1dc7e2a-1966-4050-b2c7-5f4f732a986d","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":52,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"7c87d1bd-ef3e-493c-919d-c46a0dee835b","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":52,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"661a5b17-e000-49ad-b156-38557cb33c4a","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":52,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"e469d6e5-a14b-4d18-b49d-614280698af5","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":52,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"4b0cd981-dffe-4773-a9dc-3908b3347ecc","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":52,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"8313435f-a42e-45f5-9d9f-af6cad331ff3","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":52,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"878d5188-d767-46d7-9b04-0435478c40e2","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":52,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"f265e474-6cee-4ca5-b545-26931ade44e8","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":52,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"afd8447b-24d6-4518-bf72-14f225981fba","block_type":"box","text":"of the borrower.","page_number":52,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"1e69a81e-eaef-4382-ba9c-71a33354d066","block_type":"box","text":"II-7","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"bd0a2081-4a67-4fdf-851a-3d4672ae8299","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49ab10fb-a730-4f16-b942-235ef73719bb","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":53,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"cbaa13fe-fc5d-4e7c-94cd-0f3815c8923d","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":53,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"e2127e9e-5add-4910-9120-9c530bf8d922","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":53,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"fc15739c-8172-495e-812a-388e77e7248c","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":53,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"36c9f5e6-2933-41d9-89a4-1351d73badc5","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":53,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"dbd991c7-b9d4-4f27-9903-6a082956c56e","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":53,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"084d1d48-d7e4-48c3-9711-cb0f427cb594","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":53,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"f9c2de75-f65e-44fc-96f4-e51584ea0252","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":53,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"619c6a45-83ad-4914-8430-7a8b064f58dc","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":53,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"7a3c79ba-97e2-458f-afb3-c585b056f4c9","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":53,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"1650350c-d2f9-41a9-a08a-6f315b54cf23","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":53,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"fc2eb6f0-6e6e-4e69-bb17-48dee1df44e3","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":53,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"20dd380b-3bc1-44f9-aede-820b2110e09d","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":53,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"e842e75e-4495-4b65-9b38-d8fe27fff7f1","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":53,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"1edb0c2c-3872-404f-bbd5-3ecc467a7fe6","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":53,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"219478ca-4dc0-4dff-8be9-86e5f4bd0989","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":53,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"454d9ea1-add1-4441-856f-3ae02a94dc4d","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":53,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"f2ba621b-a61f-42d2-8fcc-0609bf724f6a","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":53,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"1ba7b678-f620-4d75-97cb-fddd19bcad89","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":53,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"50cd05f3-74a9-4a72-9a50-87672490b70d","block_type":"box","text":"state law.","page_number":53,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"d3e1329c-03b5-4aba-a70c-7655adb9b10e","block_type":"box","text":"Direct Lending.","page_number":53,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"495f104d-61af-43f7-a5de-bf17c52c3a6c","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":53,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"10db3887-c7ce-4242-8c0f-966957b505e3","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":53,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"e5c77ba8-787f-4f8f-b8b0-3278645eae43","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":53,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"cb959945-47db-4c3f-b682-1b68d240375a","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":53,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"67507d88-49cb-4e0d-adc9-adc93ab96081","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":53,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"4d0e33ad-5610-4751-b8e3-5258e359cfc8","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":53,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"fb5f132c-7aec-4281-8bdb-76fc9a4afea3","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":53,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"87a5d526-34e0-43e4-8acb-bf48f21a110e","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":53,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"55dcd15c-d1d7-4f81-88eb-f41483616120","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":53,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"6829f624-6e60-4ebd-9b64-165c433ddb31","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":53,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"216fa5e2-ddc2-4b35-86d0-2f8b35d9d02c","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":53,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"ad5bd7a7-12d4-4659-ae1a-4144bccd174e","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":53,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"53a27884-09ba-43a8-b5ff-22c6c4be6f01","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":53,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"8d56cc03-2b46-4b61-94d6-8c2edc396a76","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":53,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"74590d75-fe20-4724-b5a9-422f844d8d72","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":53,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"c6420b63-f867-44af-9f56-da5c76ea593d","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":53,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"b8dc5c55-0295-4f54-9c67-f2804d74cead","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":53,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"0d520c0b-fca7-4225-981e-21aa74babb4a","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":53,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"a776cb01-8f5c-44bd-b898-51b4948adc93","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":53,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"6539c6fd-92cf-4ba8-b9e5-23af3f59ff5f","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":53,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c50f99e6-b7fb-4514-95aa-96d00d9291d6","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":53,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"c9b72961-e40b-4f90-b143-1e34a2db30bf","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":53,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"1e4152bb-2759-4f89-9cb1-49d675f2a714","block_type":"box","text":"Credit Linked Securities.","page_number":53,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"abc65752-72a7-4080-ab5a-15306d442d5a","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":53,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"45ac3206-0652-4a72-a066-105af3df5c49","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":53,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"d646cccd-c3b2-49ba-9e74-cfa20d0dcd2f","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":53,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"5dde62f1-a154-4a43-b882-dd4c175563e2","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":53,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"d7084ccb-e285-4f65-b1ca-5d2cac5e318c","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":53,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"6e47e164-f2c4-4858-9306-d8f9b939729d","block_type":"box","text":"traditional income producing securities are not available.","page_number":53,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"964bb86e-1288-4999-86a1-3bdd58172b8b","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":53,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"87898a16-1d1b-4c05-a7ae-879ae86ae06f","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":53,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"31d1a1de-37b2-43ba-b0fd-0928f1548583","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":53,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"4dede060-6869-46bc-af5e-23eeb72221ec","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":53,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"89f0eebc-ced0-4f41-8e2d-5e1002326fcb","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":53,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"294f77f9-edda-4b0f-adde-966971d91edb","block_type":"box","text":"II-8","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"dfbf6659-1d3e-466d-bf56-35ec5ccc8376","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24aa549b-4c70-4fea-bf6d-a4f7818cc0c5","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":54,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"36ec9c7e-56f9-43c6-ba70-ac8c9696a4ee","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":54,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"c6b64065-1e24-4c5e-97fe-9a04971aef1f","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":54,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"bcdd66f6-b53e-433c-bf02-4c450927e803","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":54,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"ab7a7078-2529-48bd-adf8-c34316370864","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":54,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"50b3df02-008a-4ea7-8c28-a3724c01832c","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":54,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"72b6a738-5fee-4fed-8978-15ca7e72a47c","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":54,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"10a31403-787d-4d1f-9db9-61bbaad8d47b","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":54,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"d040b183-2970-4e97-84a1-e4b2c6f3d991","block_type":"box","text":"investments.","page_number":54,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"2ddff12b-692b-4a75-a857-ba30570de50b","block_type":"box","text":"Debt Securities.","page_number":54,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"decbbb43-df3b-4969-9388-2001af950b8e","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":54,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"7fadf4e6-0b6d-4891-87f9-a9ab735e0d5d","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":54,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"b0102fdf-c346-44ee-9770-d842650da1ce","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":54,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"6540ed31-b09b-48d8-8dbf-edd6b6962ca6","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":54,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"bff37c25-61ff-411e-a27b-aab75da4ef24","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":54,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"b84fa0fb-a06b-4fa9-8620-cabe509f0627","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":54,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"2b7c4c5d-9c9b-4920-934b-709ba557c0b1","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":54,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"85e4bf86-6dfb-4f80-a565-e9e04298cd31","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":54,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"f9d5870b-526c-4e0f-bfb4-f3cd39b2c4f6","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":54,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b01254f0-7269-4906-a3cb-3f91a42ef82a","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":54,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"92570555-faa4-4808-bdd3-9eafa88e99f4","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":54,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"bfd6e6bc-ac66-4227-b66d-43644c57373c","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":54,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"f7039227-b2fd-4e71-86cc-c98365494620","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":54,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"612d9890-f8f1-4200-bb13-54c2f32a362c","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":54,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"f0b8be58-c7c6-4712-92c4-d329c0cc8919","block_type":"box","text":"lose value. This is known as extension risk.","page_number":54,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"58e9c215-8d7a-4c96-a316-f30a4917b6df","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":54,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"f7cfbda3-8154-4149-9cb9-d30330feec58","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":54,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"5bc3a524-3aba-4604-9441-ed531ef24652","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":54,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"9a65b102-571a-48e5-b83c-10ed85499075","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":54,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"bfbc9942-b1c4-4722-8fd6-4ea788883644","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":54,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"863005b6-06da-4d2f-a442-6913c98379e4","block_type":"box","text":"Floating and Variable Rate Securities","page_number":54,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"8bb97347-abcf-4349-aebc-b9e60898364d","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":54,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"c26f8b8b-58f1-46d8-8c7a-6dc5ac555ef2","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":54,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"1b651551-30df-48bb-a287-50bef8dedf26","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":54,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"9d44d944-64ce-4281-b8a8-4428f10c3c68","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":54,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"1da23630-2839-4fe3-a24e-e1c7ce36ec1d","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":54,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"8271da6b-4934-43f6-9181-d5beb6a383f9","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":54,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"b35e209c-7d60-4529-9e0e-0704c8e509e6","block_type":"box","text":"market interest rates.","page_number":54,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"2e853bd3-66bb-4c6a-84b4-0a6a6f6ff2ff","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":54,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"ed26d72e-119d-4a56-8c13-80eacb43bdd6","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":54,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"c9298340-51f3-4eb7-90aa-371ce775e3d5","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":54,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"146d1bf8-cc81-441e-9c41-b65721ed30af","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":54,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"0f9f11b3-9ff1-4b1b-8433-8b663eaf6198","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":54,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"c9d5e146-32e8-4fe5-bb61-367679699ad0","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":54,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"a0c3ec8c-1109-4923-9d5a-595bfa41e8f9","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":54,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"3076a0f5-e2fe-4789-bb61-827e3e715420","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":54,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"7c4b994d-6866-4312-a2de-74b220ff9bb7","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":54,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"a7ac8f9a-a3f4-4d6b-8d6b-e34cd84a5a1e","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":54,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"1199761c-6bfd-4647-a33f-ecd1bc17a366","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":54,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"dabfe3cc-5cec-4f0e-86e1-1c4044fb4e10","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":54,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"64eb5354-18e8-4dcd-99ad-2d7699196fcb","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":54,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"ed41a747-ea34-429c-af19-b51eac36af64","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":54,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"ff36d501-ce41-4603-9777-2f1124b05986","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":54,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"6f058671-6a7a-473e-85fa-c56d010ad9f2","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":54,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"9fbb039f-d87a-4b99-bb7a-5e5658817e89","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":54,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"08093ff6-9524-4304-9621-40ee42209e5c","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":54,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"98fc5089-59da-45a6-a6bb-7b3679ec9b48","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":54,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"237680f6-497e-4318-9fac-96d00f789de0","block_type":"box","text":"II-9","page_number":54,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ed261157-544f-48af-9a34-c403c47097a4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4090cf9a-f7ff-476b-be07-054392accc38","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":55,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"62b732d0-c4e7-45d2-a16f-13ce5e0e1826","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":55,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"71da4170-846d-45f8-82de-93118e2261ae","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":55,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"4ce7b8e0-438f-40d6-a059-ab9aaf7e8a10","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":55,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"725a337c-bd45-482e-b2a1-7bc96365785f","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":55,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"2a615890-1b56-472e-99fb-ec6df8c76170","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":55,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"a3b32b32-4992-4b86-aa4a-7447664dec3f","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":55,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"c235b2bc-3437-4592-b7b5-da3f3c986ae9","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":55,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"d8ef20f3-2621-4b3c-bfb6-f3b67cfa9d0e","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":55,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"ea324c18-b3a6-4d2c-ac5d-e54e2660d732","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":55,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"63f83560-3ad7-4146-b7a7-4e6b353a0e88","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":55,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"ee45f098-d3d4-42d7-9a5d-03ba2741c685","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":55,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"c1fdae2c-cbf4-4faf-8276-971cd499c999","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":55,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"a8a3f200-1cbf-48e4-9e18-a94ce5cea9f5","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":55,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"8125c86f-40da-407e-9679-789b1e9e55ef","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":55,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"0d0e454d-0c07-4fe8-a207-f5082c6f6e46","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":55,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"a353ff5e-adaf-4480-973d-872d5eedfcef","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":55,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"d6094031-d987-489d-a6c7-9c193b25cfe8","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":55,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"94e64d53-ed49-4db2-bbfa-69d7cbf1bcd6","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":55,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"c45b6fdf-9302-4836-88c9-fc983a751714","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":55,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"7499fd61-586a-41b2-9327-7aac3d7dc84f","block_type":"box","text":"United States.","page_number":55,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"46b79169-5200-4e24-95a3-1541d3c8b623","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":55,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"cca3cb67-01fa-49b9-af33-6d4f7c31eaab","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":55,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"f20d8150-da4f-470d-9e1b-5de0edb5afae","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":55,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"fa4448fd-1895-4c1a-9485-53a7f4950343","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":55,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"f629694a-8e9e-411b-a254-12d207643d4e","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":55,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"65d8faed-1cf9-48a1-b58b-41d8d3d5ca58","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":55,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"348956f3-0121-4036-b742-62e63d1260d1","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":55,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"cd4e61c9-b3ca-4791-b039-a60a82b8fbfc","block_type":"box","text":"i.e.","page_number":55,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"7fc36f2a-763e-4524-8221-d4a321b51075","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":55,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"7d71c06e-1ada-4041-8c49-435ececdce6c","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":55,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"487481a7-7cf1-44bd-a74c-dc48c1eb4694","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":55,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"ac6634e5-6a1f-4151-97b0-47acfc1def56","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":55,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"57374a91-94a7-449a-9493-72323353fd8f","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":55,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"5abbeb75-18a7-4201-ad55-bd2df39be33a","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":55,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"967ccfc3-3999-43f0-b2d9-359fe2b50c71","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":55,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"370c26b2-2510-4e26-9984-88b354722406","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":55,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"5a9ff79e-d10c-4618-bd1b-76bba1d6c8d6","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":55,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"192b223c-594c-4b37-b981-0d8c35d86875","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":55,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"712ea8d9-acb9-4c29-be8b-be58286f4a37","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":55,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"5f653b48-618b-4d10-8be4-ef813600b34e","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":55,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"9c1a6090-f814-4fbc-9448-d1596619e8c3","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":55,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"3360f73f-8753-49e7-920a-04fbca7c5a47","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":55,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"1005825c-638f-4335-ba82-09a2509dbe4e","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":55,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"5f4a4efe-b029-4abd-9a32-f5f10f86b1ad","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":55,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"ffbb0371-e73a-4e33-a50e-5c76739744ea","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":55,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"cd0baacb-40ec-4fd2-a5c7-c45f4d3b2d5f","block_type":"box","text":"risk than higher rated securities.","page_number":55,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"4afc6c5b-213b-4505-8ef7-799af88d6f90","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":55,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"cb23df84-bcec-45ec-aae6-d6fa4af8e003","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"481c043a-3939-4e86-aca6-82f243a56246","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":55,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"866ec357-089c-4b2d-ae3e-cfc6f7c24adf","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":55,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"ada3949d-4679-44bb-955b-37c791e0c388","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":55,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"8d3d2068-3c74-4c8e-a6b5-d9bec5109878","block_type":"box","text":"unavailability of additional financing.","page_number":55,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"54eb5492-b19b-4896-ae50-475f3711ac2a","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"6eb2ee13-2507-4adb-9461-86074d27989a","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":55,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a86d9c9d-d723-4e82-83cc-729e3ae9fa1a","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":55,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"8ce2eba1-4692-4861-a115-e3235919ab66","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":55,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"57d36b7c-60e7-4a52-ad12-2af55c950b64","block_type":"box","text":"II-10","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6835bf0c-fde6-462b-8a63-fc69e065b268","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"996fa2b5-8bf7-4bbc-bd2a-f1ff36d0210f","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":56,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"24fdae88-06b1-4aae-abae-2be76dada5ec","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":56,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"cf5c613d-f6cd-4fbf-a44e-9a48deed4fa6","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"addbfeae-bf82-40d1-ae15-31aa8e4f6656","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":56,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"da16d36d-f44e-44bc-ba5f-4f7fd8799b83","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":56,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"10239f45-b002-4478-83ab-501f46353b6b","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":56,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"aa5152c7-5d4a-4558-9fd4-5d3ff21888c8","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":56,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"d80895b9-4556-40a0-bda1-da5acc2e25cd","block_type":"box","text":"investors in higher rated securities.","page_number":56,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"f8594d8e-9b4f-4b5e-b4ad-3062bdd268d1","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"69cb70c1-c51b-41a0-a8f9-b1c5c4bf575e","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":56,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"068a4dd0-b910-4ca3-a48f-641a77d7b133","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":56,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"368a8daf-c878-4bd3-ae7f-206c963ded1b","block_type":"box","text":"lower yields and may lose income.","page_number":56,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"c61a7a05-310f-41f9-9bd2-ba91f5235fc4","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"d064c10b-a40e-4b7a-b0a9-d2f37729fdbf","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":56,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"8bcfe3de-dfec-4844-ab26-91f29f2b93f2","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":56,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"8dd3988e-733e-426d-86f1-751fae385ada","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"f1739ab2-5c5e-4583-b97a-b7727e67bd4f","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":56,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"7e3300d0-993b-4a59-8515-ba56d6c1cfb8","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":56,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"a987cae0-54f6-4a9b-b2de-5bb1b51ed523","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":56,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"4fd827e3-1121-406a-8b8f-f353448dce0d","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":56,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"8f1fe51e-8ae1-42c7-8abe-830c7be2a24b","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":56,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"cdfa9b88-3375-4968-8112-45c0f4b94275","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":56,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"cff6cb9a-cefa-4c07-a529-1bd132649a1d","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":56,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"1edf7f2b-28a0-4ed0-9e3c-86ab9d896d22","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"96e54bb8-5191-406a-b372-4d708c89d3db","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":56,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"d245133f-3171-4ce4-baa7-f084440af90a","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":56,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"cd8f8f00-3470-40a8-a828-4b5a5ab9f37c","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":56,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"542423fd-f162-44fb-80d2-721ed9dd1ef1","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":56,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"eb9f18e1-140b-4aa9-be84-ad3f9c6d1f53","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":56,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"1d83987e-7cbe-458d-9d69-9ce3bee5f1a9","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":56,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"8736bfea-8ddb-4c9c-800a-8b03e38bad15","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":56,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"96502f59-d862-4329-bcce-42a94cacff49","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":56,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"e86740fc-feca-46e3-b7f9-8d7729e86da9","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":56,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"ef7355f7-fbea-4d97-acfa-62cb229a7345","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":56,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"c4a1db39-eab4-40c4-bf3f-6d81ee920b27","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":56,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"589e46fa-7668-42ec-bf8f-4c29f27204b3","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":56,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"c77243ac-db38-4f21-abf0-ab69d443f95a","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":56,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"3fadb964-c9d4-4b67-b260-a728ceca51b5","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":56,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"e44b8406-2862-4d85-8e93-09d961b57a7f","block_type":"box","text":"role in determining such valuations.","page_number":56,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"6b902878-494a-45dc-8208-833bdde1c738","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"4ef8d4e5-b0d3-4906-a80f-b13daba55f4a","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":56,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"6b82efb9-1252-456d-bab1-dbc3fa1e0fe5","block_type":"box","text":"a defaulting issuer.","page_number":56,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"9768aff2-39be-4b4e-b387-a684cdecce88","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"459956d5-19d4-4516-90be-8fff6b133426","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":56,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"694911f0-793c-4e6e-bcd6-91579dd75eab","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":56,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"57b65f54-5bf0-4915-b686-21ebdbc620ae","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":56,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"60d2b2f1-b626-48b2-90c5-adb0fd3cdc49","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":56,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"b91a4953-94bd-4997-86ef-8d18efaa1c8d","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":56,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"0247662d-209f-4b41-b70a-a9d7cbd4bb86","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":56,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"4849f1d7-f5fb-4395-8d03-bc4362fce38d","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":56,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"c7230606-adf2-4df0-a239-f5da29aea84f","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":56,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"fc51158b-0672-4fd2-a61e-7149aa54ecfb","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"acce33fc-55d0-4750-a011-96fa65be7bdd","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":56,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"48799ef5-dfeb-4726-bf97-0fc3a273f4a7","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":56,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"91ff77db-924b-4d22-80e5-ae84f4d05df2","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":56,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"16945560-19a6-4195-acda-7af665afbb5c","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":56,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"092f179a-0cb5-432c-8fa9-a5dcf52c8b17","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":56,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"9e1411f8-3aec-4210-b3fb-910d522ae705","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":56,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"00001d4f-1836-4e8b-8267-7f1ca65cb619","block_type":"box","text":"higher-rated securities.","page_number":56,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"ee6489ee-d0b0-485b-b0f5-1b31e3d9c6ab","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":56,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"c39684d5-af84-49a3-bcc1-ac83b6298347","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":56,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"95837a4c-e62b-47ff-8778-cf44865b5af0","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":56,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"749d963d-d327-4e6c-ae3a-dee648aacd37","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":56,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"a1eba7d9-fb4a-4344-bd5d-4eb12b7eb8f3","block_type":"box","text":"II-11","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a27c1a1-e981-42b1-8397-27e41d390f3d","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"843cf6d5-21af-4efc-aaa7-2bf2bdd69300","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":57,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"a0884963-9b3d-49e0-ba1a-79ab3ec77eea","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":57,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"f3bf0bfa-db94-4efd-86e5-44cdd5a9efc4","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":57,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"b7b140f1-23cc-4b9e-a9fb-847777ca9a2e","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":57,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"5fb51591-d7f4-4858-be79-ea29d50a66fe","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":57,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"be05d234-0f15-4272-ac63-d8f59f5a449d","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":57,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"557c11ce-9c6f-424a-aee0-46407c524d3f","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":57,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"bc754098-60a0-43dc-8d2b-3ac173f644f0","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":57,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"1ed5767f-6cb5-4c02-966b-790c2c4e9497","block_type":"box","text":"Mezzanine Investments.","page_number":57,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"2926d4a0-0adc-421c-9f8c-0ef9f753748c","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":57,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"92009b93-313a-4c5e-bbc5-7a3d4748a59c","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":57,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"daa84aab-8d24-46ed-95f0-ecb6ea828594","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":57,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"b2c9e952-40b5-4239-a986-d88cddf66f38","block_type":"box","text":"e.g.","page_number":57,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"f35f863f-3e24-47bd-bc2a-bf6c4f674c16","block_type":"box","text":", with","page_number":57,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"a1192375-f9ff-4a5c-b565-3704339a5d92","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":57,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"3593deab-5d4e-41f6-baba-a200925d829f","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":57,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"77da6361-7965-42c1-bd3c-830b1dd51ead","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":57,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"73a445ad-3718-4726-bdf0-5fe676841163","block_type":"box","text":"other obligations of the issuer.","page_number":57,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"f021813b-e196-4e28-aa1c-4224afc7a57e","block_type":"box","text":"Pay-in-kind Bonds.","page_number":57,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"29bc1f38-c5d9-473f-9c87-fcb9412a2579","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":57,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"fcb3c153-3f34-4950-aa2f-40aa803ae7c3","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":57,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"e8979844-2218-4469-b24f-4d8a659acc69","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":57,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"8fc732f9-2b10-4bfb-b04e-5c25d1f011b0","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":57,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"4704cbcf-a124-4e38-8a7d-0c61002f87d6","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":57,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"e3b7e627-90af-4bb5-b079-94f0ac51946b","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":57,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"db4ae1af-6db7-44a6-8101-f09297c5de79","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":57,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"29b859f5-d72f-4076-9a67-b3f45d91d6f9","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":57,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d043b1ac-9abf-40f9-a843-d6f4a09d08d4","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":57,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"65019bbe-2691-4a2e-9920-ec72f7533f56","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":57,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"5f7709b9-521f-4f02-819f-f8ac4648820a","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":57,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"dc12a009-6040-4a3d-8a9d-7bbe19f0dcaf","block_type":"box","text":"Supranational Entities.","page_number":57,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"16314e87-8f1b-4ac9-b822-6b42e354df36","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":57,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"b3981a3e-2a4d-4b51-9b46-1f760ea06206","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":57,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"c6f210d1-a0f3-4208-9e1c-1b50ead87664","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":57,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"5cedf319-324a-464b-9a46-7edd5815e210","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":57,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"e0e52923-abab-4a7b-a1e0-47e3d40d9347","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":57,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"b469d59f-5419-4306-90ac-d820ae9b59b0","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":57,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"4154429d-5903-4d53-9630-4747747426c1","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":57,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"e6d4282a-2c5a-475c-af1e-7079039afcc8","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":57,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"dc5e8bcb-71c8-4599-a3a6-3fa55f6c1e61","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":57,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"e0950942-6fde-4244-9df9-26e180274959","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":57,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"e172fe6c-d6d6-481f-8a6e-98885c6b363a","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":57,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"ff5ccb5d-fcac-4221-886f-25b334479143","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":57,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"007d3813-840d-44be-a666-2c9a3f8e53a2","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":57,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"1984837b-e93d-4339-9c38-e5df77a6af38","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":57,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"0246545c-f314-4d97-b2a7-3d5a4cbb0f16","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":57,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"19815214-1d79-4fef-af4b-265a3a9ff349","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":57,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"94cb0be2-664b-424b-897e-ac0ced662a52","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":57,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"2341816c-8d95-4816-8881-348eb31a2de4","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":57,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"97a29238-45ec-46ce-a203-613464896c27","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":57,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"db8c2519-e20f-4b7d-83ce-75bb46d6d51e","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":57,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"8c302a84-9825-4ca8-b381-b3be226e4a6d","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":57,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"933858b5-fd6f-40b6-b0e2-be5a980f12e3","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":57,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"88c8ec04-bb46-436e-9683-9c9ebb6b9dc5","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":57,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"72613bea-f627-4948-9e9d-b0cb45cb884a","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":57,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"a44ce63e-c0d6-4d4b-a4db-a34d1cb1bf35","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":57,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"de822bb3-f06a-40a8-9ba9-17c337e94540","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":57,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"1f616a99-aa62-40c1-974a-f7ee30b465f8","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":57,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"9dfb6abd-5edc-4d0a-899e-7fa8db1a1e69","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":57,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"d0144597-3ea1-47ed-a826-9fde09dfb577","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":57,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"4a30098f-5955-468d-aaea-93adffdbd3f0","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":57,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"59bb9e2c-cbd4-4295-96cd-28a567294168","block_type":"box","text":"II-12","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a2b4ea0c-4594-4c5f-8cdb-faf5bf10c313","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75aaa20d-d7a8-4f61-9144-71f288888e7a","block_type":"box","text":"Derivatives.","page_number":58,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"3e4603b4-dc2d-412a-8ab7-71c6b37237c3","block_type":"box","text":"General.","page_number":58,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"443675c9-2fbb-4d1f-8ae4-3ad789dd8257","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":58,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"01e29880-fa5e-41eb-890a-6935700f8ee6","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":58,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"994aa54a-bba8-4bdc-9243-3a578f10bf63","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":58,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"f90d0536-5406-441f-949b-bb72db2dd38a","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":58,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"8fe3d1a7-d9e6-42f0-9bed-4323b2ff8dc9","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":58,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"cc21647b-70d6-4dbf-bb85-0cd2a510f987","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":58,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"94164319-5b63-482b-9202-d8ae1f85bbde","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":58,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"68bf5180-69f9-42ef-ba37-c5cb49c9cd28","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":58,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"6f4b4a38-425f-4f31-8bf0-e8a04fd28dc7","block_type":"box","text":"i.e.","page_number":58,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"784c032c-08c6-40a1-b341-59e28558d02e","block_type":"box","text":", the payment","page_number":58,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"c7dd8117-3b00-4c15-a912-ff35a26e4f33","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":58,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"da16443e-7645-4521-98f1-f5e301136e12","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":58,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"a74bbefc-e249-4ce4-b579-b01aa9daaf05","block_type":"box","text":"Hedging.","page_number":58,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"6819aba2-098b-4a76-a6be-2c15a59d1243","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":58,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"34e8e224-967f-4494-adb2-e23e5e529470","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":58,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"e47f95b9-8882-437b-8044-dff3f48ca93d","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":58,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"274370c0-85e0-4034-97b8-b390128d7bbc","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":58,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"dfa0d347-c652-437f-a250-76ff58e66edf","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":58,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"cf595307-ceae-4ed7-b19c-bea3bcf0174f","block_type":"box","text":"correlation risk,","page_number":58,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"65077512-9f6d-4933-a250-60e69868fc27","block_type":"box","text":"i.e.","page_number":58,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"b05351ff-ba43-41bd-9ac7-b3edf6ddf7fe","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":58,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"24c60ce3-9ddf-4f26-8806-f22e9280099f","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":58,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"81953bb6-47e1-4903-a4c6-da37ece6e711","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":58,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"5041e5cd-b425-4d93-86ed-2b22e868d194","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":58,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"06db3553-9147-40f0-acd6-75369143de0c","block_type":"box","text":"Speculation.","page_number":58,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"8c5654f2-c11e-45db-8e19-1f7b59739806","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":58,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"cc7c2000-473a-4300-b987-ca6b5ab0e672","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":58,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"8b8c7e78-ef6d-4e5d-93c4-9951d4893e20","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":58,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"d811e18c-f593-4929-86fb-40d5593f26b3","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":58,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"702554e0-153e-4b3b-bec0-8c66ad2d8323","block_type":"box","text":"in certain cases may be unlimited.","page_number":58,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"9f097a02-b4d4-4af5-9fc3-894b834758ab","block_type":"box","text":"Regulation of Derivatives.","page_number":58,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"d400bde8-c7c4-4b6e-8fdd-946c2fe6ee49","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":58,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"b5cfc12b-a7b0-4b42-b2a7-1e023f45a3bc","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":58,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"c95654a0-24ce-4b89-859c-bc97663c2f1d","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":58,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"3dcd35c9-5ec6-4e59-816c-cbdce5e60614","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":58,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"63b8bc67-5654-4230-803d-de96085f69bd","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":58,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"a808af8a-3b22-4a4e-9ca2-e715be743baa","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":58,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"2323157b-3380-414b-9cac-28d581ad30ca","block_type":"box","text":"coverage”).","page_number":58,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"d7c4803f-d391-4352-af26-fb964d9bcbb8","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":58,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"eaa6c12d-a5b0-4547-9029-cb569103b474","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":58,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"f484ccca-8584-4c64-8188-593d83566a0b","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":58,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"1e69042e-2818-4c23-9456-8eb8d91838de","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":58,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"c4be53cd-dfc5-4207-96a3-864208f6d5eb","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":58,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"ed3ffc7c-3c47-4345-9306-36a6d8689f37","block_type":"box","text":"financing transactions (","page_number":58,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"f826efc6-5346-46ae-a78e-70d4dd63257b","block_type":"box","text":"e.g.","page_number":58,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"68fbb02f-58eb-464a-9414-389362b9f034","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":58,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"f27ce055-cc1c-4bb7-b5e0-df3e84d0725e","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":58,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"c4d5a4bc-21e8-4fdb-b7ca-ecb35e7ec1f7","block_type":"box","text":"securities (","page_number":58,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"c3bca9ca-1f54-4fa5-98ef-1dffe4dacc3b","block_type":"box","text":"e.g.","page_number":58,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"28192236-8c1f-4c6f-b078-648ed7f55b3c","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":58,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"4e80f0e8-dd32-41e8-9660-b0ec967e8d5e","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":58,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"990499a0-1593-4122-87c7-de0fee2f417d","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":58,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"8f417879-a00e-4252-8942-739c9df9ba21","block_type":"box","text":"Commitments”).","page_number":58,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"b45dd487-a4cb-4653-9c0d-b68580107a2f","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":58,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"9203348d-a89d-4ca9-9ff3-beeac7ba511d","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":58,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"2f9ae308-bb1c-49ba-ae1e-fa0deb6b7b45","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":58,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"f8d44315-c3f2-45dc-9314-9c33459d0b9f","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":58,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"e734210e-3323-4e36-bdb0-9bba71f78b3a","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":58,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"db744372-0dfa-431b-b0fb-c32d8e1dbef9","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":58,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"5098b989-00cb-4aaf-aed6-3e728e1116be","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":58,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"21552700-0f33-4480-850b-a9cadd090eb0","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":58,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"bcfb3bca-2d16-4034-871d-4c51ba009f78","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":58,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"13fab917-4a65-45e2-b3da-72d1dbbac788","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":58,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"02ed713a-35fd-438d-8b5d-00d485dca85c","block_type":"box","text":"II-13","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f37beb8-ba1d-4d10-a4e1-de5cd849b23b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72efbf0b-92d4-42ad-9729-9a3379a0dc22","block_type":"box","text":"Dodd-Frank Regulations.","page_number":59,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"1ef332eb-7684-4e0d-b25e-f65a642b9d43","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":59,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"8fea9324-7322-4061-96fc-51ba15a00c5b","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":59,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"5d065155-069f-4c5c-b03c-9c43e15bcc01","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":59,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"b986ca36-f00a-480e-a1a2-074159c09260","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":59,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"b16b1107-03cf-47cc-981d-c61d81e353c5","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":59,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"58769622-8c15-4c93-becf-7f2c42393565","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":59,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"7b90ce59-b7f8-4feb-a297-a6b6ba313f02","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":59,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"701c2b60-4f29-42e5-a007-aea9297fb9a7","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":59,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"f8a378e8-1e1d-4188-b212-c3726463042a","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":59,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"915ec837-95da-4aa2-b155-9e797420ab6d","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":59,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"8dec1602-935a-41be-81ac-c588a7384900","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":59,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"db30d098-e40a-4d19-9d4b-17f35d766234","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":59,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"1d3693a0-17ac-4e86-938e-6bbefe878111","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":59,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"e4bab5df-4956-46a1-8d92-a6f244c89f8c","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":59,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"ecb55e8e-0934-454c-bb34-883f53d7529d","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":59,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"29c44bd2-701a-4acd-9712-77ebc569eceb","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":59,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"59a241f3-ea6b-45fb-a485-c02049d1b5d1","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":59,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"c241e9a3-032f-4766-9c7e-dc1d0c304dc0","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":59,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"4733f315-5881-4bf3-90a1-86f92834b04c","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":59,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"4559a7b3-bc94-4b60-9ed3-db1449e8d29b","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":59,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"3ef115fc-9b59-4d65-a9df-01a6073c08fb","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":59,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"f2cc8533-ef02-48d7-8c15-b804d25e6643","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":59,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"4c6d664e-be02-494d-97a4-185972b122bc","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":59,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"60521bd0-bc13-43c5-bb79-856505299a39","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":59,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"15b006b8-5638-4eb9-bd91-2c86bdf8d834","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":59,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"1d38da93-7db3-4f00-b476-e155162121d4","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":59,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"67adba89-619f-424a-b958-ca8c4465592b","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":59,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"85eb300f-52be-43b9-a9fd-5e6dfe512ca1","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":59,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"7c97e35b-7a88-4346-ba20-2c17f3af80f7","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":59,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"497868f8-6351-4629-aac7-ac99f6fa3831","block_type":"box","text":"member.","page_number":59,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"7179cfce-f2ab-47be-9129-bff9836820c6","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":59,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"5a080086-64f3-48f0-bc5a-5c8a4e89f326","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":59,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"21ae34a1-7689-4401-a5a5-eb738119493b","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":59,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"8eecd48a-0b69-48be-bd5b-abc7f08da70e","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":59,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"758371a2-2680-472f-9587-0c74d7d92426","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":59,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"cfce806f-a54c-49e3-a0a8-7c7dc41caa90","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":59,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"a8dc8c6e-156f-4cc8-b010-6cb2d3ed1d09","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":59,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"a2f8f583-5c75-47b9-93bc-a00778e64792","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":59,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"1a3e0001-efa5-468e-8cee-e7a6c375f87d","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":59,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"8378ae1c-4fc2-4b0c-90d7-781daeb07a9b","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":59,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"b2fc6800-44fc-405a-8cc4-32d372823fcb","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":59,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"aeb04828-9c61-4e69-98c0-a6c76ed3536d","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":59,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"a3a9d288-c14f-4101-93f3-5597d118402e","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":59,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"840b9045-1f48-4d11-a900-e2170ccc5813","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":59,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"4a1551a5-8eea-4b5e-afe9-1996b5034733","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":59,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"90d12ba6-2926-4383-88be-dca9dd5dff2a","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":59,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"8eb2b033-a3b7-4d72-9a6f-eb4cdf23d256","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":59,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"003702f7-4f96-42e8-9917-16f6ad3915a7","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":59,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"7ae8e458-f13b-4a69-b37f-097cc628e424","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":59,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"2247d172-3807-4d6e-8577-6002efe0744b","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":59,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"fad36212-2df0-439a-aa57-0ecd3e728d47","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":59,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"8e6e1168-d13f-435a-92b1-005c12d81bdc","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":59,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"307bdd92-07d2-4261-a15d-65418e8e3169","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":59,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"a0f459cb-6d9d-408e-9cad-6d6aa6e183eb","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":59,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"e0fb458c-7843-46a4-892e-bb7917f47534","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":59,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"119ec712-6182-466b-a03f-b1dfbfb72925","block_type":"box","text":"II-14","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4f28ad2c-4f4b-4f21-a870-c20bc335be5e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e65dda74-0c6e-4375-b864-7365652b2dcf","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":60,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"02cf0647-a214-4766-a289-020b5d5ec168","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":60,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"b234fb81-0b7c-49a6-81ad-58e314502d56","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":60,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"eb40bf29-2e02-4b87-bce3-da54fd380819","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":60,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"93eac269-13ba-449a-8786-0cba486afac7","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":60,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"6e6049f5-1cee-43d5-b239-515ef85749e6","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":60,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"b962eefc-7bc1-4901-b5ce-f3f69287dc4a","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":60,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"840da1db-7205-4fa1-b409-03531899a9b3","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":60,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"1b63f842-7520-4969-8ff5-f59908126965","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":60,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"a3f8a46f-5ba9-4943-8e3d-09fb6d08b700","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":60,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2b594083-0f04-420d-a9eb-d0e624a49e33","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":60,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"cf1b0090-942e-4a22-97cd-96323642f3b8","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":60,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"2a5746b3-f01b-4878-85a9-7ac630c51335","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":60,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"d1297e64-0b82-46db-a369-1374a58369d8","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":60,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"99ed4d09-94c8-405f-9b6a-2c9eb57ec016","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":60,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"9f253917-5eca-44b7-b73a-c0f8a84b121b","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":60,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"8f4ffe70-7b3e-462b-96b3-77d931829f6c","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":60,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"b1b3514c-557e-413b-bbb5-cab84330a97b","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":60,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"afd59c7b-202c-4d63-9f8a-3b5a14f4f719","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":60,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"3f7c8873-7b32-40c8-be21-ed2c1b25c91a","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":60,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"d7972d03-2f23-49b9-83ba-97cdced163c3","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":60,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"4c82e79f-80c1-45f4-8810-d556f3b08549","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":60,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"308a1cb8-2bc3-4a72-bf21-500728c01255","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":60,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"ed6e03d9-bdca-4d24-a726-6079214aaaa5","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":60,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"8ab98771-b252-417a-b3c4-f37998def95e","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":60,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"a583666e-aaa5-4299-9fd4-c17249b74ee0","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":60,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"2893becc-258c-4946-8c17-447bb216a237","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":60,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"0fe9a622-55fc-44a3-9d89-f612d9c064fd","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":60,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"c2646f4f-49b4-459c-b248-0155c0ced002","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":60,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"7f2f8382-54da-4be6-a762-658ff6c20ba0","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":60,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"b8f82855-90d3-4248-981e-a0f99f70a0a2","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":60,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"2c1363d5-69fc-46d4-942e-5a1805761b9f","block_type":"box","text":"collateral received under such contracts.","page_number":60,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"96265eca-b24a-4464-810f-3ed1bef43cc7","block_type":"box","text":"Risk Factors in Derivatives.","page_number":60,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"2998d620-bbc6-4c84-a016-fe8ca357725b","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":60,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"c358418d-55a1-4f06-ac70-9afb17eca57a","block_type":"box","text":"Correlation Risk","page_number":60,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"886326dc-070f-4c87-b37d-58ed59c4d4fe","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":60,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"d4562d57-ae79-4a1d-aed7-31d1a804555b","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":60,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"844268f4-c1dd-40a5-bf74-388bcd7b75da","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":60,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"e1cd992a-6bc7-42f8-9f76-ddd1623b257c","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":60,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"7f115e98-a888-4dc1-a47e-142a04297960","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":60,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"9dafbb24-be2d-45f5-b6bc-cb27b117ca81","block_type":"box","text":"Counterpar ty Risk","page_number":60,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"927e119d-f854-4734-b1f9-d8cd0a5b14ab","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":60,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"58275b97-5a3c-46a9-99f7-2af973052ee2","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":60,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"e2911379-ac53-41bd-8474-097e040b6720","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":60,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"39728a45-9314-40e3-84f9-8e456b499f7e","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":60,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"d61e6238-f3cf-4c73-9182-ab2e24a81246","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":60,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"4eda175f-3b87-43cc-b8f7-a13cd7378471","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":60,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"c0e64caa-d5fe-44ab-a387-83cebc6bf268","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":60,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"730c239b-175b-4e63-9c5f-233f57a4b6da","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":60,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"03a6b049-0d6c-4838-9989-504c83cd2334","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":60,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"331be0ba-5307-4cee-9e65-78d7435474e3","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":60,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"2ebfb8bc-7a4c-4cb4-a6a0-0b9a5141334f","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":60,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"bc8222e7-9c11-49e8-ad3b-e752ed213221","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":60,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"4c1ae106-7f0d-4d0a-86d4-b74dd5dc05a8","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":60,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"d8693a43-45bc-40d3-88d0-c2b883956328","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":60,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"4c2e1a49-eefd-486d-bee8-91fb76c8a313","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":60,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"e5b133d0-4d3b-4e64-9ff6-2a73891b36be","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":60,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"3fc218bb-cb17-42ab-ae65-b64fb8c3bbf2","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":60,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"8050267b-198a-4704-a11e-b1fc4e120910","block_type":"box","text":"II-15","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7d66268f-627b-4a5c-bbae-502d069235ee","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3afbdd5d-33d6-4822-8d2a-16a254f235da","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":61,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"d3d6e956-42a0-4337-b17d-63f8e139e9c3","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":61,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"fc7efbcf-03c8-4466-a1e2-c8281d500e65","block_type":"box","text":"by the clearing member.","page_number":61,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"038d463d-d67b-4e65-af09-e35608d465a8","block_type":"box","text":"Credit Risk","page_number":61,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"a5e63108-ff76-4898-b8aa-abafbfc49e51","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":61,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"cd4f41c8-7a2e-4c49-8a09-364d80484f1a","block_type":"box","text":"honor its financial obligations.","page_number":61,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"0936e172-bb01-4f53-a728-2d63b616eebf","block_type":"box","text":"Currency Risk","page_number":61,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"2fa8c915-f338-42c7-9e25-18821025be8a","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":61,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"94365389-5f64-47e6-a751-fb4f2e072e36","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":61,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"a712ac13-866a-4e80-b97d-41b7638ae21c","block_type":"box","text":"Illiquidity Risk","page_number":61,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"3b16fd55-ad08-4426-ae14-33f3ddc69e0f","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":61,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"68f60431-7f22-4ef0-b031-69c69e0ff4f1","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":61,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"23b6b6d1-f117-4496-9068-704a9af687da","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":61,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"e305ed77-029e-41c9-ac4e-3d61a9b95ce6","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":61,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"0ae03735-426c-4daf-89a5-00fba9d2e999","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":61,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"3a7d5bc9-303a-4d67-a24f-fae440713f3f","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":61,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"7518bcc6-0253-4d2d-bb81-d0fffbeab6ba","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":61,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"7fa27a4a-2075-4334-96f7-1dae6a0f7de8","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":61,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"f7745e0e-5020-4db8-b55e-a043ab0bbac8","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":61,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"4a92090d-249c-44fc-969b-f7bc7b328eb0","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":61,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"335ef282-bd73-413b-ae54-fcc31102ecad","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":61,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"365a00a4-d718-4a47-b306-a773489e2c8d","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":61,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"6097696c-4d1e-4e3d-9ba3-32043c0af858","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":61,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"606b0e56-34db-449c-9d09-93eaae14957a","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":61,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"3d9fd5df-4bca-4aa7-96ad-5ce39909612a","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":61,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"75a6c87e-702d-467b-93d4-f0d2b539f9a8","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":61,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"81c04c7b-4216-4b5b-b87f-30f57f82e62e","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":61,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"2fe57c73-146e-4f32-8797-ec1e566a83c3","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":61,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"6a2da897-9fd5-4cec-ba92-639907f5c489","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":61,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"51c6abfb-2c2a-48cb-abeb-dd9eb394fb08","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":61,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"0378a43d-7da7-4fe8-8229-df2ea12ebabe","block_type":"box","text":"may be disadvantageous to do so.","page_number":61,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"10afecea-2085-448b-9712-c348c434f22f","block_type":"box","text":"Index Risk","page_number":61,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"d094f59b-a463-4db3-b2f5-0fd270406db8","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":61,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"f06998bd-99e6-4268-834e-08aabcc1fb25","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":61,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"0ed51b2e-a76f-4a2b-af50-8a4e350e6aad","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":61,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"bb04e372-fd6b-4125-92c8-7250863b7025","block_type":"box","text":"Legal Risk","page_number":61,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"3670bb91-7257-4dad-a98b-a3357869fc72","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":61,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"a79e5cdc-74fa-4003-b155-eae05ba8d919","block_type":"box","text":"or enforceability of a contract.","page_number":61,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"0134dab9-2fe5-4592-b976-d7c1b2f31524","block_type":"box","text":"Leverage Risk","page_number":61,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"91f8644b-e24a-4730-96a8-7e57575dc074","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":61,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"fd8fc8ee-4cd8-40bc-b833-cb65c2295baf","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":61,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"5e358bf3-90a9-4b09-a74b-16ce52c6f47f","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":61,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"f1fcf136-c622-4339-9bd7-81cdde06fbaf","block_type":"box","text":"Market Risk","page_number":61,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"54c0bed1-80e5-439c-b057-f061b3c24176","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":61,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"70e4ce83-f24a-4f16-9ce5-efc9239621ff","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":61,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"f21207e5-1469-4964-979f-524012b00b1d","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":61,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"6554977e-26b5-47c2-8b4a-4c332547d9e9","block_type":"box","text":"affected.","page_number":61,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"f38d1ce2-9304-411b-9667-7f14328eb4d8","block_type":"box","text":"Operational Risk","page_number":61,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"1c7e8543-a3e9-479a-a4e7-b610b864f21b","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":61,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"ced99083-8bf0-4c4a-91aa-14b9562637eb","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":61,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"93b63d32-73bb-475a-8f74-2b8753e12cc6","block_type":"box","text":"Valuation Risk","page_number":61,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"da525c0b-9deb-4055-bbb8-bebaf845fde4","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":61,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"ac02e029-41c6-4019-8e84-701edc0c577a","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":61,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"2aba59ba-12c2-4c06-94aa-5c9866d86d87","block_type":"box","text":"complex instruments or quote prices for them.","page_number":61,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"5a9fa5d6-9270-4027-a778-1ebdb15e00c8","block_type":"box","text":"Volatility Risk","page_number":61,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"868ba5ad-9b13-4bc0-9c31-734d092ae0d8","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":61,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"9a5a63d9-92bf-461f-b4e9-ac2bdbd6ac50","block_type":"box","text":"Types of Derivatives Transactions.","page_number":61,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"152ccbd7-d2b9-429b-b63c-620c6470de53","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":61,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"5be83d01-5cdb-42f0-8f31-f56fdfb0ab32","block_type":"box","text":"including the following:","page_number":61,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"a5380a13-7fa3-4715-a09e-b16f0452bf35","block_type":"box","text":"Futures.","page_number":61,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"b8961ec5-24c5-400f-af2b-0a5e48ff9ff8","block_type":"box","text":"II-16","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2617d954-d4de-4008-9c67-58966314f843","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c874a119-9bc2-4f41-92d1-a639a0f33b27","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":62,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"b0b22851-c17e-4a7e-b60a-12a89d12ace9","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":62,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"920d9b74-f651-4926-8c46-fce1a08cea40","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":62,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"a9712371-e2ca-4e66-827b-e8b405fd525f","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":62,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"e57230fb-5ebe-4085-bbba-4d9943650eec","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":62,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"20922764-69e7-47e2-b51d-6212c007456b","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":62,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"54e3dbe7-e659-4918-b78d-57da53149700","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":62,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"4191873f-3048-417c-b43c-624f52159027","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":62,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"6c01bb85-ae06-48cb-a97c-0360f0306c61","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":62,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"6e8325b6-aea0-4982-aaea-341cf30e2274","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":62,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"aeb37af7-5347-4146-a266-a952e3958ffa","block_type":"box","text":"of the futures contract.","page_number":62,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"a297f319-ff8e-4cd7-8eaa-1ce0c7d023e6","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":62,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"bcada4c5-7cff-45d3-974c-a3f5eefb5933","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":62,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"081d2370-0cb4-4c5d-9c95-405b15cd7b15","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":62,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"4e4af1ef-1dab-4d9d-88a8-4a19624a4fa8","block_type":"box","text":"relating to the futures position.","page_number":62,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"5125d856-3174-4a71-aa70-348c8d3e5ca0","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":62,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"18ecff4d-4fec-4f08-87a0-0e026d24be01","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":62,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"4b3de464-fbaf-4bef-8b1a-89b748db9497","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":62,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"9c5b85a2-4a2c-4e1c-9dc1-4ff9e3644fd2","block_type":"box","text":"Regulations” above.","page_number":62,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"10159918-993f-4660-a9f3-8f3998ddc89b","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":62,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"5fbe3f8b-dda7-4eb9-8d85-bfd519ac350b","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":62,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"87cec78b-d300-4d00-bc27-d344db9e4a6e","block_type":"box","text":"(","page_number":62,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"e3970af5-a70a-4f3c-bb49-a4eb9f5a2d0b","block_type":"box","text":"i.e.","page_number":62,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"c5c8895d-3112-4adb-8256-25bdeda29769","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":62,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"fbf1e803-6e15-474e-abbb-bd16d27fc441","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":62,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"b88d6e07-eb17-42f2-beba-169681441850","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":62,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"097da363-0e99-4abe-91ba-4a0d982c1eb1","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":62,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"fc7ae29f-ccd0-485f-bbff-4891d585707f","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":62,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"839f95bf-8bfd-4c7d-94df-d6096587495d","block_type":"box","text":"Fund intends to purchase.","page_number":62,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"d97f09ab-d5e0-4b68-a2a0-0c43cf47c9ab","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":62,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"922f4d4b-671a-48a2-aaa7-187b989b2fcd","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":62,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"a574d0e6-f423-4447-9b04-ab58169ac8dd","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":62,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"53bc4bd3-d148-4325-9486-201005bebffd","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":62,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"48657914-4296-4a53-a212-c4009864a1bf","block_type":"box","text":"illiquidity.","page_number":62,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"28e20a2c-ccd6-428a-8a4e-1308025664b1","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":62,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"073b6b12-dfe0-4bd8-beca-efa95b7ae884","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":62,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"bd5e1072-b735-4c09-bb14-daac409631ed","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":62,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"3996d8d3-eca5-49bc-9d15-e1b3231be31b","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":62,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"20082b7c-3535-4b46-bc86-d6c9a0c9dcff","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":62,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"79645110-cf44-45d3-a61b-46f209dc54b0","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":62,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"0176eb8a-07b1-4ac7-8d70-a741db7532bb","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":62,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"2b8f8b4c-1009-4ba9-a86a-be9417cac70e","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":62,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"fdf258ff-62aa-42f5-b07a-7462a1448535","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":62,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"a9ddcea1-c455-4344-81eb-703a75b36b69","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":62,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"a252cc3d-3f43-4b53-a8fd-847dd968a748","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":62,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"c162fbe3-a965-4b8a-95ad-bc8d0db8ffd0","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":62,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"bff521fa-55fb-44ff-812a-c71c6966645d","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":62,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"bc14184a-f6fb-4bf1-baad-3a811928e3eb","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":62,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"9651e322-9d12-489d-a78f-588af1fba6ad","block_type":"box","text":"Swap Agreements.","page_number":62,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"76e13cee-a0f4-4a6b-80f9-a8d9cfccbcb2","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":62,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"05e26e77-6534-459b-8d04-76301f6b183b","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":62,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"10bf1d96-2dcd-4e27-9c71-6a40a9b2bbcf","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":62,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"5d3c107a-1250-497c-973f-9f947098c086","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":62,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"4dae0fe2-0a66-4d71-a5a1-7bb76d1ff825","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":62,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"e58c683e-2042-487b-8f71-893e5ad244f9","block_type":"box","text":"a “notional amount,”","page_number":62,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"d2415a5f-3a16-45e8-8cbb-c0f0ca953275","block_type":"box","text":"e.g.","page_number":62,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"db53dbeb-6eaf-4456-a8c6-29ce8fd3737e","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":62,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"2c53a3b4-6156-400e-841f-73c7b7348030","block_type":"box","text":"II-17","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b0f9f12-9531-432d-b52b-a9fe7259c1fd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c7bdb04-8744-43dc-ab8a-75e1907f5d60","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":63,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"9b7ec62b-0a92-48ed-a117-35ce4a31fdd7","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":63,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"3def7651-beda-4977-818d-d27422daaf17","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":63,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"d0246c54-47b0-4b8e-97a4-34153e6ba144","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":63,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"e6f8d907-d3f7-4485-929f-7c956edf3b71","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":63,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"223f689d-8b77-4c4e-9de4-1cae25539d2b","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":63,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"72633394-35b6-4f58-ba80-2f9d178134d2","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":63,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"65daf5a0-28b3-4a32-8b4b-3e42117df8f6","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":63,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"e01bdc1b-4381-41f6-84f5-ab1f7e5310e3","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":63,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"db107982-f4fd-4ef2-9812-1957713ab3db","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":63,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"1092f40c-d865-4ab7-9b8a-2879b1f66079","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":63,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"9ad370c5-35c2-4b97-baa4-af21ddc465be","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":63,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"4c83190a-c2a2-40db-893e-bf359bef5faf","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":63,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"05b815d2-40a4-49ac-a15d-d16de84f257b","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":63,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"ad575e52-bf4c-4394-ae58-96630a568397","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":63,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"3d8cdac0-f858-4072-a569-9f4adc7ffcd3","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":63,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"c7bf9e75-3837-49f1-b0fa-f470d2a8cd0c","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":63,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"4df6f822-a3fc-43f3-a4e5-96966f37debf","block_type":"box","text":"index CDS.","page_number":63,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"5ad56fd4-f096-4eda-84bc-78b4ce3ba57e","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":63,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"491bd4f0-a9dc-4cf1-be0a-fe1d44c128ed","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":63,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"b09e1391-af09-48b5-98cb-192628a15de7","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":63,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"3c708139-3a92-481e-8dad-141679d97c05","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":63,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"312b7b42-17ed-4c3f-bfa3-9c5300b8a877","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":63,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"7455c5e6-0564-4c5d-9d6f-89150db4a2ba","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":63,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"17b9bdbc-d5e9-49c1-bffd-1820ce8f1d60","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":63,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"3b7d5bd2-281f-4a93-95f3-b04e8adec3e3","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":63,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"b81bfc11-e369-4738-8db7-818da519cfd9","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":63,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"30d99277-35a6-4009-92f8-8e0eaf91a0b7","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":63,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"cae034f8-9cd2-45ec-947b-94e5f905f1b0","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":63,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"d9ecd72f-b381-482e-9060-3c973ec41eee","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":63,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"86b7face-595b-4b32-9744-e9af80f7458e","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":63,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"0fa65696-270f-4a20-b0af-ea0f01928f87","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":63,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"12690853-2948-460a-8cfe-1fa9939fda9b","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":63,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"286d5c4a-07d9-405a-b996-209becfcc152","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":63,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"9e3bc81c-4ed4-488a-82fc-045842eba226","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":63,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"86e40224-06c8-4703-b319-de6ed9088184","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":63,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"185a0be8-16f2-49b7-ab67-653996c7b573","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":63,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"5b108a39-25cd-4e96-ab1a-d6febf7979e2","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":63,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"c81e4977-afcf-45df-a66c-4aab8488b92c","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":63,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"fdc6bfb6-f364-4930-bbfa-ad3a944f1fcb","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":63,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"a117401e-c932-4af6-823f-c73bc2ff446c","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"e0374c91-3743-4224-888e-db91199dccc2","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":63,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"7f0ad143-b23c-4d05-9660-696c9db81543","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":63,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"ebdf0c08-9872-4211-91ab-c7ed7a0a9ec7","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":63,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"b50ffd00-93d4-4c9e-95e1-4c1fc4d75ed7","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":63,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"16c323bf-ff9a-4572-be24-7b6273cc52ae","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":63,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"051c6e79-f753-4fb5-9b53-72d994f2d8a4","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":63,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"af702db4-a3f6-444d-b656-d213a889a1c2","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":63,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"28db0e27-493b-4c75-9037-da94e49df408","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":63,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"5147f934-bcf3-488c-bc5f-c0c0333e96ea","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":63,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"e40dc7a7-615f-440c-b89b-9f141f6d28d6","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":63,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"7830bf87-47c7-4aa6-9694-00889659084c","block_type":"box","text":"conditions.","page_number":63,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"285f0412-d5ec-4ea7-9510-cab85ef940a3","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":63,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"545c5f33-1f23-42b5-bbd3-8ace2b236e63","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":63,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"54bc38ef-23fa-472f-a11b-cd081673ebc3","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":63,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"8d0ceb6c-d58f-491b-85c7-5364a89b0ea3","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":63,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"f7635e14-521a-41f3-959c-b7f6449b7dc1","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":63,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"b29ce2c0-a62c-47d4-bdb9-8c2d5c2c2025","block_type":"box","text":"II-18","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"296c0bf5-1c26-4b53-a226-234e58941d6b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2b6717ce-26ab-46ad-8f11-78ded9839e19","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":64,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"49dd1baa-e09e-41dd-a1bb-acbcf2f16d7c","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":64,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f13be5fd-7ddb-4edf-ae87-6dd7287799f7","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":64,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"70b48171-64f8-46f7-b18c-417558c6eb82","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":64,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"a9b63454-82c3-4040-aee9-8a08a70c7f35","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":64,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"687448b7-e0df-40db-aad4-b09b6c2754dc","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":64,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"0ca175f4-f838-46b8-a1a3-9a2a4eb86f29","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":64,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"87913494-a913-4409-bdc6-9606576eaa26","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":64,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"2a7bc3a4-6f6c-44cb-8b61-e57496ba2140","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":64,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"9bbfae1b-1663-4077-a123-126f30aef9ca","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":64,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"a8349c33-4cee-410e-9380-60f581491f42","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":64,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"1f6a14cb-0641-4c5a-94d0-8702ce6d305b","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":64,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"52f676c8-e96b-40ad-8cdb-7baf06f76a36","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":64,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"dff20f61-a163-46ef-8d4c-436a73e35a40","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":64,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"082d3fc1-692d-41a6-a253-3aa7553d1ae5","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":64,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"1e7f143c-778d-4be3-aead-d0cc1974270a","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":64,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"69affd7c-5587-49ae-a51d-4ab0802257b8","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":64,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"c2868c28-5cdb-4d14-b94e-246c3bc161aa","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":64,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"5abb40ee-83de-4eb4-9b71-de3a342992e5","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":64,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"ff3803b1-f1e3-4eb6-a4f5-e07ed2d8daf5","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":64,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"310a0f70-7963-4229-b198-c09c52b02697","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":64,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"723b5bfe-094b-48ab-a9f6-c63f1d7ac16d","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":64,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"6cbeb3c0-d5ef-49cc-9a82-e3390d49acc7","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":64,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"078ceae2-011e-4af0-b737-91f2607f3f4a","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":64,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"40cd0798-7ea0-4ca4-aa43-5d3f2793d8c6","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":64,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"b2a77ff9-2559-4d7b-803d-bf5cdb1e0d68","block_type":"box","text":"cleared interest rate swaps.","page_number":64,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"e1fa5116-1b94-412d-90c1-4098f4991061","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":64,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"cd603c58-6fe7-4da4-b306-27ddb131c32b","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":64,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"29dd2991-5d4b-43b6-8fa2-858577e3b16a","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":64,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"5cae3c5f-ff06-4d43-8bca-e00dc9f4aa44","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":64,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"ff050291-3336-41ad-a8e4-62f1da4e9de2","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":64,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"c664657b-f4f1-407e-9723-ac26ca186c4a","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":64,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"157ccb62-394f-40ca-86eb-116dcffe27db","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":64,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"e2d2d841-d667-49c1-9895-8eb178789158","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":64,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"c52b9b48-d28e-4353-88df-44ef740ad04d","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":64,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"283a3401-1dd2-4970-9e2f-4f650cd950fa","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":64,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"77649762-8f62-45bf-9b98-68c72557e8b6","block_type":"box","text":"or variable interest rate, index or asset.","page_number":64,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"658cb74d-e38e-4c7b-abad-d1af2bcc04de","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":64,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"f1a92ca3-8116-4342-b93c-bf2a3944cc8a","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":64,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"fe9db4c5-2b4f-4ff2-955c-34d349409f9a","block_type":"box","text":"such interest rate floor.","page_number":64,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"621b2365-81fa-479c-8995-5ae1e1c8877a","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":64,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"42705dd6-94c8-4b58-be6c-e113db58be38","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":64,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"44838d6c-b01a-4b40-93a3-1d537c65cc34","block_type":"box","text":"such interest rate cap.","page_number":64,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"5a890613-f854-4196-a6af-5711f0bdcba2","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":64,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"9700262d-b21f-4ae7-8d26-fd5736bcf3c4","block_type":"box","text":"commitments to pay or receive interest,","page_number":64,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"ebad69dd-e581-4f65-a5c9-4127242f5a1a","block_type":"box","text":"e.g.","page_number":64,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"062a29ea-022a-4882-81a3-44fd9b9fe7c7","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":64,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"4f3136ff-8327-4b0f-baf9-f815f22b1555","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":64,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"18714b1e-67d7-4ded-86b4-6e10bce1e7fe","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":64,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"3d30a42d-2f6f-472f-ba34-d950f20b3410","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":64,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"d941421c-356d-4cac-8d90-1b1c22aeb209","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":64,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"b5c39999-6016-44e3-8aa4-e8678ddd8515","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":64,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"3f4882b4-fbea-4c97-95cc-7e07f0677023","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":64,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"e5524fd6-86ad-4bf6-9632-200e66f512d6","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":64,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"bf65646f-0dee-481e-a313-1e74bd771198","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":64,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"b485525b-21f5-4149-bbed-b9c564d76060","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":64,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"d19ee218-d38e-4021-b793-198a67c0ee60","block_type":"box","text":"II-19","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"de11c55f-d6e9-48cd-b926-c409b72be621","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c3554920-53f4-46ad-9525-33286f84a93f","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":65,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ad0699cd-3da9-429b-ab9c-ca68e4048141","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":65,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"01f68733-26b7-4ca9-a2e6-b52e582692f3","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":65,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"645662fc-3a70-44c9-b223-e96788afc093","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":65,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"bc5254c2-b9fb-475e-820f-ed8589402927","block_type":"box","text":"Total Return Swaps.","page_number":65,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"e2ff293b-7a8f-4bb7-972d-3040cbc31f0a","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":65,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"2bc2e630-ea52-4924-b2f9-47d6c918f004","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":65,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"51550c3a-55fd-4690-868f-081f0e6c77ca","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":65,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"8f6ed66d-f269-415e-aefe-6d0160adcb54","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":65,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"c4e10155-2715-4e75-8103-627ed271e779","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":65,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"8f7d4d82-7927-470a-b7e9-97356a6ce38f","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":65,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"feafc0a9-1e5e-4e8c-8007-93816c35e8a4","block_type":"box","text":"“contracts for difference.”","page_number":65,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"20f69e32-9dde-43ba-8cbd-ea2811053999","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":65,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"30cb8f47-4b55-4aea-a5ef-4ce4ad7e493a","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":65,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"e30d69e2-5560-47f9-bd07-fdf50027d92c","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":65,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"64fc9352-c81e-4c39-b962-3da00b46d887","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":65,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"6b8df899-4897-49cc-86f5-b932124cf636","block_type":"box","text":"the notional amount of the swap.","page_number":65,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"12d5f0ba-86a3-4b4b-b8f1-da7dc7158e26","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":65,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"aa0b4414-edf7-4522-b449-0034b202aad5","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":65,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"99f2031d-4acf-4c85-92ff-dfe4a8095801","block_type":"box","text":"Options.","page_number":65,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"dca5063d-6911-4fb5-a84d-3239f3982fd4","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":65,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"2945e90f-342e-4063-9502-ab6fe2102ce9","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":65,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"d462a895-5c0c-483d-85fe-72049d9ee8af","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":65,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"c65216ef-6aeb-47d6-a8a3-2265103e5db5","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":65,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"653dbd7f-f931-4e65-9204-b4f76364afae","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":65,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"de242a45-4f80-45c8-8efa-511090e302c6","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":65,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"51d159a5-98a0-4b89-aedd-5bef052c3184","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":65,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"1c331de4-983e-42ed-857b-db8382d14aef","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":65,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"1b100b60-c9f0-422f-9d09-fb5c6fbbb50b","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":65,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"cef4baed-51ed-46a1-8a17-86b9c314c9a6","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":65,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"d902bc02-19b8-4968-917d-b416fd5a4311","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":65,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"39e90bba-a62f-49b5-86b9-47e320cf1520","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":65,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"6be1250f-d639-47b3-9832-1d56ba4509af","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":65,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"0597370c-f525-42ef-9750-79884e78166d","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":65,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"044dfa64-a17f-4c1d-b477-7f21be872740","block_type":"box","text":"OTC markets.","page_number":65,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"40edfe7b-98b6-4532-b8e4-78333df1b49a","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":65,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"39d057bb-d1e8-4a0b-bbf2-b54a0588e66c","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":65,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"546b5aae-55de-4884-91bd-33a4678bdf43","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":65,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"b43eb0e9-3113-4e65-afea-17c1f15c609b","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":65,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"5f2829c8-42db-424b-b6c4-6dd756935bab","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":65,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"03e30262-a69d-49e1-b08b-df0cc6352bc6","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":65,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"a19093f1-fb99-4fb5-825a-a9ed10e7b9c9","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":65,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"cf361633-e816-4ad4-84a4-c5c9d8dc77f9","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":65,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"e9253dd8-3197-40eb-950d-d2cf6fbf432f","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":65,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"0a7cb62c-f0aa-4d35-94fe-9da9d898dc8c","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":65,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"69cac9d5-4fca-4182-a41b-ca7f05d1d3ab","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":65,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"7137423b-d16c-4c02-8bcc-9642eeea8567","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":65,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"4aacd4d2-a038-4445-b6e9-de5b2a7410f8","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":65,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"2c1b2e0a-1f4a-4779-a444-e9b274d77fd3","block_type":"box","text":"terms.","page_number":65,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"a6f2235c-c9b7-45f1-8a7f-9b349eeb83f1","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":65,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"3513e358-aa17-4483-bc0b-e850d8f15beb","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":65,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"c238b16a-e10a-42eb-97f1-bff6b4f29a41","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":65,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"6b4939cc-d8e8-43b9-86a7-7d9b34edbf02","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":65,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"b57fa1ee-7011-41f3-99d3-d7a66be082fa","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":65,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"097a4e0d-e5b7-4a53-ac99-ebb6a11b5179","block_type":"box","text":"II-20","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"105a20ac-8923-487f-9e55-f1d7bdc9fb88","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"907c5496-e9ce-4be9-b083-6c4857d4f083","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":66,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"7a852202-5bb3-4f98-b5e3-f726cb6400d0","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":66,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"0623d0e4-8807-4fb1-9434-437e676e87e1","block_type":"box","text":"Call Options.","page_number":66,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"514a705c-9abb-4b91-973a-df34cca25b50","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":66,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"14d0cfad-8224-4bee-bf7e-d4f7755229a2","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":66,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"333adba7-7253-45fe-a9d1-472cc7ad3052","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":66,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"d4c5c1b1-16dd-40e6-afb3-67c6e09dace4","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":66,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"eb3ff52d-2c17-4386-952b-7dc2403efc16","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":66,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"3e3de20a-5dc4-4083-9bfe-3be85d9e06fc","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":66,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"d0a463af-b053-4197-a487-228ce81b65f5","block_type":"box","text":"of the option.","page_number":66,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"d46a5168-0b67-4fdc-8dbd-20abdd5b8902","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":66,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"1dcfef73-150e-4259-81d0-cef22efa7760","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":66,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"60c84b53-2bc3-4144-96a6-bc51a624fe52","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":66,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"f532f713-b600-464e-9d41-088601b662b9","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":66,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"2ae4af90-cf02-4a3c-b0c4-60de34c74112","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":66,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"7b0064e9-2099-4088-87eb-35e12ca81222","block_type":"box","text":"A Fund may write (","page_number":66,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"05bb8839-222e-4e0a-a35b-6ebed5d76212","block_type":"box","text":"i.e.","page_number":66,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"cfb86cc7-f73f-4de5-8ec8-da97d07e7bda","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":66,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"ea628b87-677c-4392-9e3d-218718641ed4","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":66,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"4f720f79-7c27-4d70-aeb4-b22478189b30","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":66,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"2aa0f11c-97aa-48be-bd7f-28ed1ce52cec","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":66,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"cc31abc1-d22e-4433-a5a6-f43ca7934f58","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":66,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"0f424c81-ca6c-4674-a8fc-233384eaaaae","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":66,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"acef1583-8857-42aa-919b-0c358ac954c8","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":66,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"3ce6d5ed-685d-4a8f-b77e-b699bbd5a0a4","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":66,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"561b02e1-1579-4d5d-ba65-49758af2850b","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":66,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"f0e91ac0-9efa-4990-9f8b-ecbd34e6f5b8","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":66,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"638ac28e-e668-4f48-ac6d-18b386c33673","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":66,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"ec54a711-17c8-4cfe-98d3-d53c220176c8","block_type":"box","text":"A Fund may write","page_number":66,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"a644dfe6-0781-4f5f-9801-a7386486a4f5","block_type":"box","text":"(i.e.","page_number":66,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"9b9f6ccc-c7cf-472d-a9bc-cae98dde3a50","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":66,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"8638e864-b969-466d-b25a-0c85eeb00457","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":66,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"96355428-7e2e-4c16-a5a3-f10cf5536481","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":66,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"aa46246b-b027-4aeb-865f-3318ed3a80b5","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":66,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"52082e39-f3c6-4823-b260-5514e1eb85a4","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":66,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"472bab75-32b7-4f61-a4cf-1d69932ad565","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":66,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"0d125c73-c581-448e-910a-7124eb2bb5b8","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":66,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"787cda14-c406-4809-a880-0543bbb1ef40","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":66,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"2b73829b-e923-4bcf-ad42-e14fde33a6d6","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":66,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"73fca979-102c-4d7b-b089-abac3d3c488d","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":66,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"94c929d3-0c85-4f31-a3cd-ebc66e2485eb","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":66,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"01e5c9b4-70d8-41e5-95a0-b62633230fdd","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":66,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"460af2ca-c208-4678-b7e3-1f90d25c7a93","block_type":"box","text":"Put Options.","page_number":66,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"234bef8a-ffcd-4371-bb66-020ae4c7f7b8","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":66,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"f487d6b6-6189-41b3-a225-004d9aaf0afb","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":66,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"758ce797-a0ec-49ca-a5f2-9a129c6c08a8","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":66,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"5d723b19-b0a0-48d8-b8c3-5f929bc5a4a4","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":66,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"d531a664-7709-4985-959c-c0eebc65630b","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":66,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"d784a59c-77c9-4c3d-9f71-18c451bb7ca1","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":66,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"4e2e3df3-f16c-4521-95b8-e06b9f86db44","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":66,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"1bc2e30c-928d-4d12-914a-6555ff1a3e2c","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":66,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"6f08c0c0-f4d1-40ec-b82b-2c9fb3e69bef","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":66,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"35a407b3-4983-4aaa-9000-99760cb87239","block_type":"box","text":"purchase uncovered put options.","page_number":66,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"106c4fd6-2241-46c0-b6f9-7c6598526fc2","block_type":"box","text":"A Fund also may write (","page_number":66,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"41603064-d42b-481e-918d-bc20b62022c9","block_type":"box","text":"i.e.","page_number":66,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"509f9e2a-0eca-4a56-8b8d-cebd31fabd17","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":66,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"8f02b901-27a3-4dba-a95f-af4183a81e95","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":66,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"2e6eb50d-bdd8-4fbc-a170-16f40e33224d","block_type":"box","text":"A Fund also may write (","page_number":66,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"a79a32f4-ec31-484a-bdff-3decb3a68c1e","block_type":"box","text":"i.e.","page_number":66,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"8bd565f4-0bd1-465a-bb84-5030814bb9e5","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":66,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"fcc4fa8a-058f-496c-9d93-f60785082385","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":66,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"1a7eb6ac-d16e-411c-beac-e5705321679a","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":66,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"62f68768-4574-40df-82f7-88b5189cba34","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":66,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"c3fc86a4-dd84-4c13-add9-e66359e8d152","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":66,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"cdba719e-0dc1-4315-a785-0f9878179c56","block_type":"box","text":"II-21","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0ecabc7a-0ba2-4590-8c67-d0eacba9f022","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82a70761-d753-471f-9bd3-b012ef298951","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":67,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"efcf689a-cb18-4d4e-b61f-f9d38e75cd2f","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":67,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"2171e4ed-7d43-44fd-b440-e1578d17fd58","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":67,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"f5c21e83-5998-4486-9f42-40d8b3041108","block_type":"box","text":"the exercise price.","page_number":67,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"ab32b79f-7ade-40a5-8e48-621e698a0628","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":67,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"b55f3406-1c5c-428f-8b68-1e1097be4ad4","block_type":"box","text":"The following information relates","page_number":67,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"a87fe6a5-66c3-4843-8998-ed3f66e695df","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":67,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"2d23a005-969e-489d-8f12-71e45abbd304","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":67,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"98f61dd6-3024-4f2a-bcb9-a80b2600a59a","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":67,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"df62a982-5760-48da-9379-e0366c7a39ad","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":67,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"46ba0847-0462-4d9f-8ed0-ff119df0a746","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":67,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"02b54060-85bb-42f9-96d6-ff872ae82c42","block_type":"box","text":"market in order to maintain its “cover.”","page_number":67,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"56235291-823d-4ae3-99f9-6341f122e601","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":67,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"c86b9fcb-2d7a-442f-b911-3611d892f68d","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":67,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"a3ed08ea-fc16-4a95-a810-b9f7c38ff8bd","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":67,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"c66e5201-9501-4b3f-9911-a3a440871674","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":67,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"bc4ed9f5-adcf-4722-aee7-dc6f681467a3","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":67,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d0a166a7-75c8-495e-818c-ea4d57dd3951","block_type":"box","text":"and incur transaction costs.","page_number":67,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"c9ff5dfd-ceb1-4ac0-a476-902c4bf973a9","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":67,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"6e169627-2a32-47c7-b200-dc051fbfa38e","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":67,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"96b97c2e-f882-43c4-84e6-03190bf91ebe","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":67,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"80eb2388-f09c-4d14-9c91-92d944328f78","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":67,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"d2de2f4c-31d7-4fd0-9bb5-592d4306b980","block_type":"box","text":"i.e.","page_number":67,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"7d9a703a-2e15-4487-8492-f6164829f83f","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":67,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"f6e7c6a1-ff89-45a6-8f1b-d8ed12c771a0","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":67,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"7c11c0c2-5cac-4bef-b16c-fd29ddb9fbc6","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":67,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"6a7d7762-5f8e-49bf-b3f3-3c98b9a31d9b","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":67,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"01ba05d9-0b2f-42d4-a472-013460669d35","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":67,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"02961fa3-c8cf-4873-8900-482256345e92","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":67,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"07f45854-634f-4ba6-89a3-2612c78f7619","block_type":"box","text":"required, to be cleared.","page_number":67,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"453afc15-98f7-4cea-b838-294dc166201f","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":67,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"196ea010-5e9c-4913-ab17-56b7e33f3ab0","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":67,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"e10b3eca-af5b-4f19-874b-13414f18aab7","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":67,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"42487b84-d65f-4368-985f-7a7bf2976ed8","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":67,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"2bdb471c-7f27-4707-9154-baf870bf0f55","block_type":"box","text":"Derivatives” above.","page_number":67,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"80e0bb91-0dfc-4232-ae7e-1dd448804b9c","block_type":"box","text":"FLEX Options.","page_number":67,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"1159b306-d06c-438b-a8c3-b9cde880d049","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":67,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"516a1965-21f8-469c-980a-c0e8d9d67a76","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":67,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"0f810885-b06a-40c8-b28d-617b2a35daa7","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":67,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"355dbe5e-db78-476e-9883-ff745a152d3d","block_type":"box","text":"exercise prices, exercise styles (","page_number":67,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"72d657d6-15f2-454c-9dfb-03885525b366","block_type":"box","text":"i.e.","page_number":67,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"a42dea6e-1861-49a2-a929-903e68fdba3c","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":67,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"1557b6fb-635b-4104-a06c-6b196d8de96a","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":67,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"9a8f22f5-df0b-46fa-bc53-47d3d78ff2d7","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":67,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"b54daf8c-fea1-46e6-8762-311dc333f438","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":67,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"d772bf57-d71e-4c5f-9d75-748bb7a182de","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":67,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"5b042adb-d471-4748-8da4-4e1791b6cbf3","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":67,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"46adbab0-f635-4a04-a05b-b175e78be466","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":67,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"c89271e8-9695-4116-bb15-fdc47bda26c2","block_type":"box","text":"FLEX Option’s expiration date.","page_number":67,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"d28645d4-5532-4276-880f-ed928d8f4deb","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":67,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"6f73b1c0-ac72-4453-95cd-76bc597f8e27","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":67,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"c3ff1a1a-463b-4b33-a6de-416a403aca62","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":67,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"720c50dc-fc3f-4f21-9946-f33ff2493736","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":67,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"af46b6af-fae0-4150-86be-829e8719ad32","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":67,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"7ef6f88e-4c08-43c8-b88c-fe919e6d30ef","block_type":"box","text":"FLEX Options contracts.","page_number":67,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"4ee09b07-7111-4132-a6f7-5d02da7c5049","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":67,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"9d872071-1f77-45c7-b0c6-2130bbd7e0c4","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":67,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"2727c048-8d76-46b0-8aee-597062855f44","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":67,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"d91a7b99-e5f4-4567-a3db-9efefaba98e8","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":67,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"1ea33d65-d0a7-4a65-b0dd-de4a94f7c771","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":67,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"3b0c4657-1492-4d03-94cf-84390f23a32e","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":67,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"9bdfbd37-b934-473f-b861-e4d553b7aade","block_type":"box","text":"II-22","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2809734-bc79-4c95-8566-dfed6714ae79","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f939397-3f6e-46da-ba96-29b7101343e3","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":68,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"62f23e9d-cd81-41a8-86ef-126c780bd0c5","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":68,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"577f15ab-f32b-42be-a879-6a3ce4bfff4f","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":68,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"562e5300-91d0-4bb5-a826-10e5f0d893a0","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":68,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"f8fa0f09-7a9b-4d68-8bcc-4846fd5b0d83","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":68,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"ee2fb70a-8122-43e2-9db1-662e931d0fd2","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":68,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"a9fcf228-2e7f-4cd6-9862-dbec1e8d246f","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":68,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"1ca6cce2-5608-4b19-bde8-6031190fe123","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":68,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"1db6e834-3fd8-4d54-99c2-a33e5e090a7d","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":68,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"1859f62b-5653-4866-9135-d86a3ba216bd","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":68,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"5081dcf8-9855-446e-b23f-4263f45fb822","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":68,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"64252d8f-670d-4302-b02e-c173a41a694e","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":68,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"d1feb144-3f06-48c0-9245-0c58eb54e438","block_type":"box","text":"expire unexercised have no value.","page_number":68,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"65192cc0-26ff-4ac4-b512-bb985064e502","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":68,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"01d1efcf-9474-41c6-8096-0635321ebc18","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":68,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"c8d9a141-d788-4b81-9499-c22234e11e1a","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":68,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"ae0996be-5240-4110-8abf-427d4c712719","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":68,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"036fed11-0f66-46cd-bdc5-139c7b1d1548","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":68,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"df64d32b-a536-466e-84ea-9cb783ad37f4","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":68,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"fe9f90ab-eb71-4536-9d9e-786bf87ecad7","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":68,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"4f370934-22e8-4905-bd78-6f6f1ab00ecd","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":68,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"4441294c-9cf9-473c-a30e-a74b9eb0a0a7","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":68,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"8bb70a72-a68f-4ca7-8b9e-f7712199a7b2","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":68,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"2faee23e-8eed-4e2c-97be-ef3126c00279","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":68,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"a7c38a97-6ab6-48b1-9a57-db2300c45738","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":68,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"d8a14fb3-29df-446b-9261-9088c08ad181","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":68,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"dcb2d66d-30cd-44b5-a810-d9572d6cdb82","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":68,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"d5944bbe-993c-4fdd-86fa-937e65cd82c2","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":68,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"d8ddcee7-2abc-4105-82f1-bb5dc3432f5a","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":68,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"b10382b2-f7af-479a-b070-6cf3265ef317","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":68,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"de6c90cc-6c09-4b2d-8990-c2db2239704d","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":68,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"c5a45e18-99a4-4a89-b904-7f8286656795","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":68,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"3d5ce4d2-4c2f-4992-b942-fc0d51e3c9ff","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":68,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"c0415760-ccd8-415f-aa6d-6a7a71fbfe63","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":68,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"bb89c0fb-2f06-42f4-acb9-7ca052ae52ad","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":68,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"ab9caa61-ca0f-44b5-a543-3889d52adebe","block_type":"box","text":"Foreign Exchange Transactions.","page_number":68,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"1248497e-afad-4fb6-976e-56bf862f8352","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":68,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"8cc898c7-905f-49f9-8d10-b00afa193105","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":68,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"5b292bdc-33c7-48b7-94c9-cf98cc262b4c","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":68,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"8aacb4b0-56d8-4347-88b8-9e6fa7f0df71","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":68,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"cbef15df-ee86-4e74-b155-c647974252ad","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":68,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"2074c4ee-8cc7-4b2d-bb86-2c9eb65210d3","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":68,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"c237665a-bb9e-4420-b32a-eaa12a6c3478","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":68,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"8da39c49-2d0d-4ae6-a7f9-feb9645bb5bf","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":68,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"43189d56-5d52-462e-ab06-075f79ce39c0","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":68,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"eb434f82-0b0a-43cc-bc51-0358d54609dc","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":68,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"ede35028-e399-4179-83f9-1da5ef9fb176","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":68,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"3703590a-4608-4d4b-8b10-5689050663d1","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":68,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"0c4525fc-3da3-4381-b4c0-25ef9628ee61","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":68,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"c01ecc18-0f80-4e1c-bd9d-868cd3f25d97","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":68,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"d8135fe9-2f9a-4dc3-a128-1a89667a856a","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":68,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"789e7527-66f8-4eb8-939c-fd90680136e5","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":68,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"d1ab2b4b-1d8c-4274-bc2d-a8fbee5be4c1","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":68,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"8e8c4497-07a7-4fc4-a0b7-e75cebc9e126","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":68,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"d1bc45dd-3115-467a-aab5-165ebd0eeeb0","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":68,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"a6e45202-3975-43d6-a81c-4363c8dcd972","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":68,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"ce2b1cbc-688d-4630-8057-d2441d401d56","block_type":"box","text":"II-23","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05f4a5f1-1020-4d47-8beb-c9a8323c5b47","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75ace2c8-5abf-40f0-8619-acb6fa8d238a","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":69,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"de35af80-8787-40d0-902c-907e64aeae47","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":69,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"9313c0f5-442d-4372-b26d-34df25fff159","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":69,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"5e4d9679-6e9b-4580-8d51-d8da1768e939","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":69,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"20cb8d95-5211-4882-b10a-be25ebf723c2","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":69,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"84dd4ad6-7f6d-4dc5-a29e-1fc5913dedfe","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":69,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"c9226917-5d65-4dac-98be-048e93039d58","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":69,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"b0069023-6af9-40b8-b7fa-99b257faddb1","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":69,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"3fd11eeb-7b7a-4a94-93c9-56965ee3a86e","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":69,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"ed773897-fdd9-4f66-8e37-ae328d8a4c37","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":69,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"1ff1053b-77e3-4845-8a4e-01eeba899a2e","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":69,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"cd6709ed-fdc5-44d3-8a4d-756041f3350b","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":69,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"f2ec5011-592b-496b-9cef-f5d02181b4da","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":69,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"4fbb8bcb-e474-47ff-a825-92bdeddc54dc","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":69,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"bfebb36b-2dee-4222-8c0d-ce18cfd75591","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":69,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"89de5b02-57f5-4b87-8ad0-7d2ec1fd1979","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":69,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"1b1c98df-94e4-4ee2-92f3-6a36baad7f84","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":69,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"a0005aef-b1aa-44aa-94c8-c680eb400b97","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":69,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"710cc505-c39e-457a-82ba-34f71da511f0","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":69,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"75fc68f3-962a-4ad0-984d-27a27cbdc07b","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":69,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"cd05a0ed-ea0e-426e-adce-e717397fa8e4","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":69,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"de84e184-fee6-4c6f-9e87-42e9571413ee","block_type":"box","text":"involved.","page_number":69,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"e5c68a38-0850-4e8f-8fe8-92537bc76ef1","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":69,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"cec603ab-854b-4b30-bac4-182dcb0bd78d","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":69,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"a9919370-f4a6-40e2-9f04-9cb5f7e727d1","block_type":"box","text":"denominated in such currency.","page_number":69,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"272e6392-ec03-4d62-8c0c-fbe1c548514f","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":69,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"72791d78-2038-4f08-a19c-b01d64bb7969","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":69,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"3a50dbbf-23f0-41ba-9365-6305eb852eaa","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":69,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"21308dd3-c547-49bc-bf1b-deb48ab44a64","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":69,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"281a56a0-39c9-4e7f-b179-5b8cf05b6528","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":69,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"b4cedad8-1f6b-4b13-aae8-bb5fcb89dbd6","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":69,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"0f44aa6e-3cc6-4fab-bf61-4b76b8fab14b","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":69,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"59bdb4e6-bbe5-4886-8343-6254fbbce401","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":69,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"8a886c4e-ca3d-4ba3-addc-ff0d75001846","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":69,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"95459f4a-1e23-4c3b-b20d-4cd7af026653","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":69,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"e10ad17c-50fc-4998-aef6-52b24df3710f","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":69,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"23cac99f-9931-4894-b3d2-fe94979d217a","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":69,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"72d61dd6-8eff-4ceb-9823-b907a579d179","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":69,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"5a26f0da-0463-4c07-957e-a23f4779c7fb","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":69,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"541dc50a-3214-4ced-9058-5a34c7f4bb01","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":69,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"7619926f-fcab-4b6a-960c-ab366aef4514","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":69,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"788f9e6e-9f59-4e8d-8498-6fa3d1eae69b","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":69,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"1d138cd2-dc2a-4497-a3b4-8b43687ba9e8","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":69,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"2a5ddbe0-1e12-429a-b0d7-56d0f07ca624","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":69,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"d39d4a8d-49d8-4ea1-8e6c-927263222fcc","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":69,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"c8cd2635-f74c-4bbe-b8cd-2337e49a37a7","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":69,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"6ed828cb-2b81-4a9f-a51b-4968b15de534","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":69,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"caafe142-7fff-46d7-b64d-c4941c6b415b","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":69,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"1879040e-f94f-46c9-ad15-3894b3122596","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":69,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"afd6dc99-dd81-4948-900e-67808b9cd458","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":69,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"056e2a6a-4ac9-48e2-bcee-241c67fd8812","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":69,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"22704046-2eae-4b6f-a62f-0636ae6c52f0","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":69,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"42237464-61aa-40c7-9ac0-1f4161450dd7","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":69,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"7dadf19a-597f-4a02-b254-2b6f6adf9e73","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":69,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"88f2706c-d3de-45d8-9b6f-d3e0226f0e7b","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":69,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"44731e24-f692-489e-93eb-d976e5abe227","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":69,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"034e807c-4031-4f73-a2d1-e174def69dd0","block_type":"box","text":"II-24","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a9a443a0-8345-4f6b-b581-0a541035a42f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28b7a9ad-bf38-49f1-b6aa-c0c2e9e16265","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":70,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"b92d6f63-60b7-4253-addc-97bccaa34a30","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":70,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"e16b5d03-eb15-4e4a-94db-0f4974b24c85","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":70,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"93404186-5f69-48e7-be01-91898383903f","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":70,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"adcbdb7a-90bb-4b3b-9e66-37160a473504","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":70,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"2541be12-176c-4b97-9288-59da99c54167","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":70,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"3a47c7d2-41aa-4f98-a7ee-0e44e114099b","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":70,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"6302bffd-b90d-4dff-9261-57f1e10f6a1a","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":70,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"57bf3cf9-fccf-48ee-8502-bc6d1fefe544","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":70,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"285909f5-a13e-47f1-ac4d-9b1ec3f9b9f6","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":70,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"e10c3947-132a-4aa7-98bd-2809e0f1c869","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":70,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"24b04535-0b11-4476-a444-1f1f764f4fda","block_type":"box","text":"traded.","page_number":70,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"16d916d4-d2ee-43b6-88ee-778d9bbf853d","block_type":"box","text":"Currency Futures.","page_number":70,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"81c45326-8d43-40ba-bad1-cf98405e9912","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":70,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"2e4ed09d-288f-48c1-a291-6a18f04794c6","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":70,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"68b7c254-23a2-4799-ba7d-8d5f98e1163c","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":70,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"32b782af-820e-4a82-9f20-cb32515188ac","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":70,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"b630264a-73eb-4751-a8ad-9e24a6bc6eac","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":70,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"1a3cb881-e1f8-4dc3-b04a-03a2b18fa88d","block_type":"box","text":"Currency Options.","page_number":70,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"6bb297f0-e258-4eb1-8b7d-5016c19ce4b8","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":70,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"4f1b5d94-33ac-4c43-b258-ef617411e66a","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":70,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"9b001496-0387-4da9-a064-f264fe3ce7ca","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":70,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"361142d3-001e-4fc9-881f-5969225fa73a","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":70,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"29b744ac-a19c-4b71-a7f3-ad6fa7830c49","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":70,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"a03c86cd-e778-415c-a2ca-f5a48cbafc83","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":70,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"0db1a8e1-5160-4082-b6b6-62f87593677b","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":70,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"cd8d5698-a1e0-4bce-82b3-700ea0d0cc2c","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":70,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"7d566f24-f7e4-4c79-94a1-d203095c57ea","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":70,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"6fb6a15c-fa76-4d09-b457-2eaf76a85959","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":70,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"ed00c7a7-85d2-459f-a5da-e1ed210bdbd0","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":70,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"1450874a-38ca-481b-9086-f6153298a50d","block_type":"box","text":"Currency Swaps.","page_number":70,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"869b8c12-5539-416f-99f6-51605c70488f","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":70,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"4a10bb44-5cae-4a02-b9ea-4a0bc929c64b","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":70,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"0b608e1b-0cc1-490d-bdc8-d3277aaf9e7c","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":70,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"16b3ac77-016b-4b04-a5ad-1c468e84d008","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":70,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"00be1686-7062-45ec-a9c7-f8ef5416233f","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":70,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"f9ada285-2409-4b44-814d-5e33eaa1f8a2","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":70,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"56fdea3d-10b2-4c44-b62a-21ae7384b9fb","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":70,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"0d43f6ab-1afe-4292-9882-6c4cd96b876b","block_type":"box","text":"Distressed Securities.","page_number":70,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"ebedc5e9-abb1-4b14-a292-a06a0835b3a0","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":70,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"0b2c5a14-ae4a-431a-a9b1-4f8a75f9bc50","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":70,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"21a67814-08c9-4761-9e81-882dda6a166f","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":70,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"350b36da-1bab-41e7-a794-3972f46c310b","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":70,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"b679a2e2-33ba-463b-975d-21285bfd4141","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":70,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"0d6f82ae-d17f-4725-825a-6d032070c241","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":70,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"c459ae1f-450a-49b6-aca2-117fd8281e30","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":70,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"08f7bde3-e1e0-4234-9940-ad9db5a6972c","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":70,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"6a32c3c3-6d14-4095-aa5c-64048c24d2fe","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":70,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"e03f2a7d-fc03-4c3a-b6a9-048b35237a0d","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":70,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"f7a7ee97-5e10-466f-ab1d-2ac5c8f4d8cf","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":70,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"39c1c6c5-226f-47c0-91b8-5c1fff4a2c47","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":70,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"63789cd2-35fb-45ff-82d7-2b8fe3f5cb73","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":70,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"fc6b5fe5-cb47-49a2-884b-541b5e8c5bb3","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":70,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"c6a15832-e891-4be9-9215-31a5b2a6035c","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":70,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"36d694cd-7f38-47b0-a74c-44902027b25d","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":70,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"5bf7631b-1713-483e-b63c-fd46be2ed81b","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":70,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"03ee3051-d3ad-44ac-82ce-8312ad1fd0e8","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":70,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"7fb12a4d-7805-4866-a870-afc5ec0132bd","block_type":"box","text":"satisfied (","page_number":70,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"963b4266-72bf-468a-a145-a9d609a1af15","block_type":"box","text":"e.g.","page_number":70,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"19b7e984-d592-4e1c-a1a7-745bdff64c73","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":70,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"03aa627b-2cdf-4398-83b2-b4e6f4369b39","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":70,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"079e0554-99b2-48b0-89bd-5058cd5ca786","block_type":"box","text":"II-25","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2327cc6b-7b0b-4ed4-b663-1eff95b92b4b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9eb4117c-b45e-4d15-8e67-024bf647e7e5","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":71,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"537ecbcc-62cf-4939-9f72-e6d1892207ef","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":71,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"1eadc4aa-2b9b-4024-b679-dbf2f5a2794b","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":71,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"00106ca3-5f13-4eb7-b667-19f47dfaa085","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":71,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"fc6fa475-f486-4cc7-97a6-dda1f2622aa4","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":71,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"e978f641-c45c-4c9f-8dad-e14e1f79e61e","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":71,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"356665a3-4d03-4a2c-8cd0-ddaa7fa22c79","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":71,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"172d5b36-9363-4fdd-8c09-6de554211b45","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":71,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"d7387691-27a2-4719-b20c-2ca518481c36","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":71,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"d192a0a3-ab9c-4a2d-97d7-71814bd425c0","block_type":"box","text":"affairs.","page_number":71,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"32c13458-05eb-414b-8096-10ca549e307b","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":71,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"dcbcec6c-95d6-4f90-a2c1-75fd0f5d5347","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":71,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"b5bc0f49-7dd7-48b1-8e4c-f183cc5032a3","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":71,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"7fc87eab-f57d-4cca-a235-56cbb6ba668b","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":71,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"516b3311-8fe4-40fc-9241-e522b2d08c22","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":71,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"2065838c-2a24-47c2-af17-5ed99780682d","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":71,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"487b5ec0-a4a0-43e9-9b80-865d9cdb0f45","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":71,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"a593ef30-be06-4b97-a9a6-131c2289dff8","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":71,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"fd1ed9ee-6a58-4168-8da0-89ac3bec562e","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":71,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"6a6433a0-e57d-4c38-bbcf-7c00953a08ea","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":71,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"5df7036c-13ed-43ea-a54b-c2e7ad33961a","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":71,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"13187406-5631-4bf9-a211-409353bf3f4e","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":71,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"d19b8d59-7857-4dc8-abc5-643607073b69","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":71,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"e609c582-8a7a-4a0e-9a2b-36e68ca3f0b7","block_type":"box","text":"Equity Securities.","page_number":71,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"63902a3a-1f48-4278-abf1-0a49ea462d29","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":71,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"381fdeb8-6bee-4f16-a133-b9b71ea1a808","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":71,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"0aa85285-52b9-4e44-82e5-db7b6df679d0","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":71,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"4e465ecc-8966-4510-97b6-d1e525757bd4","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":71,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"1e246a4d-bb18-4bea-ab6f-e9a4fd38d1be","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":71,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"69bd68d1-8dad-4ef2-b86d-1d1d19bb7296","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":71,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"2f6f70e7-347f-46a2-89c6-426f171997a1","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":71,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"a7c58ca1-7bb9-4ea3-965a-6bacb3c103b9","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":71,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"5a06192b-2ca8-453e-8f8a-74c0d747fd07","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":71,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"6ed21b04-56c8-4067-a756-7a77fb54f74d","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":71,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"c17dcce1-6713-43b1-bd23-92d33ad34897","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":71,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"87dfa107-64a5-4f81-a533-83d5aa84cb62","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":71,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"abe8ddf6-946f-473e-b4a7-89250b529366","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":71,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"fc42ceda-123b-4555-b059-3825eedb5d2e","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":71,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"2d91f8df-9b8d-4010-ab85-0b8843c45b54","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":71,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"4de24e02-d2c3-4faa-86bd-c032a2066e0f","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":71,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"92727d17-9214-4918-bf1c-6b2efe87fac5","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":71,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"0a26f431-d47e-444a-af73-7d01c4d5e1b8","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":71,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"077ed4eb-5651-48f4-933f-2c25b92c3d54","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":71,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"67531c60-85b2-4d8e-b562-db759074c832","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":71,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"d274a79e-b135-4c09-bc9c-9fc1bd0e57af","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":71,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"10540281-4c43-4c0b-b919-4e39e50c63a5","block_type":"box","text":"initial public offering.","page_number":71,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"57d257be-4f6b-41c3-92f1-524f983f3ee1","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":71,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"f01e1ae8-6883-4e95-b08e-cc70a042708e","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":71,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"ea222ed6-868c-498d-877b-d4943126fd36","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":71,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"a91b382c-94dd-4f0e-8685-6b39b8751c9e","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":71,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"c83e9f2c-debc-4433-8e77-cf81c471b68a","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":71,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"05f84faf-c577-4a4e-ac0e-9901f0435583","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":71,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"ee837e41-0867-4abb-821b-e7552eecf62e","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":71,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"81f73cef-990c-4b53-a841-e5b9d3d6c3f4","block_type":"box","text":"more established companies.","page_number":71,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"a28c8ad0-fbcb-4f16-9558-b84f511f7693","block_type":"box","text":"II-26","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"184bbb7c-da9e-4d43-8afd-50debe8dd4be","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63d1be7b-ee17-48dc-b990-51d38b141452","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":72,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"8d5c645e-8794-4e60-9013-009f421babab","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":72,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"e1d4e3d5-34ff-43b0-8d59-ffd94a0384c5","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":72,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"7bbce57d-382f-40b5-8ccc-84215aeffac0","block_type":"box","text":"below.","page_number":72,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"67cc1cf8-f275-4188-aedc-8a4adc926204","block_type":"box","text":"Real Estate-Related Securities.","page_number":72,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"761743d6-5eda-4661-96e0-3b00d975d300","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":72,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"80c76686-b2bc-4b32-b00f-8ed3a1363c6e","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":72,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"961fe2fd-8258-4928-ab63-020a861a7cbc","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":72,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"a1527244-ff44-496a-9a65-d8eda50fd7d7","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":72,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"2cc22cdd-8598-426d-9116-79a22f1a82c7","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":72,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"7aa491ae-6787-4c11-aa6e-6002066dbc00","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":72,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"5379321d-665d-4036-b4f6-52cd33ce92e2","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":72,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"ed548cad-d937-407b-98da-55cbfcd65489","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":72,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"b3a8cb06-0f80-4854-96d5-5709be37f836","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":72,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"d293473d-d922-4d89-98c7-5a4c6e9629b0","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":72,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"ae54288f-b45b-4041-8b84-51d538b0e064","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":72,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"45ccf5ab-d355-44aa-8183-7a238760ed7e","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":72,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"457a449a-322e-42ce-94d8-6248dce33f00","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":72,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"cf6b8aa9-3d82-484d-9a07-7d3bcba0230a","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":72,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"d0d08c2a-9ccd-4a7c-ac63-f26329b6a848","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":72,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"57af9d84-2a92-479f-b11c-6f8ce59c3143","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":72,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"53a0c1d7-d95b-47a6-b168-bb1362ad815b","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":72,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"e77b39c6-8e38-4243-81f1-1632cc5739aa","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":72,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"6d4a9f43-c9fc-405c-9c02-7da74bbd7172","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":72,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"66346eca-6d99-4e03-84bc-66b7df0e118a","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":72,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"a264d01e-7229-4038-b42a-331bb85bb5e2","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":72,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"ab0f4fbd-d9e2-42d2-a57a-8f514ba3fc0a","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":72,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"e388d4f8-ea7e-4875-a5d0-072b9c00deae","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":72,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"2e948c8f-b7fe-4249-ab10-559d8880fe04","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":72,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"5cef0b01-9307-44dd-a65e-81a8d7ad2bce","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":72,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"7ff3bf37-e4a2-4d04-b390-2cc5b753ed83","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":72,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"57f1e32e-5122-45f6-ac0b-e91055943656","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":72,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"c7f7a86a-bd84-4632-9e82-5dc26765deaa","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":72,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"4e98540a-8905-4185-9e9a-9885d2f3003d","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":72,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"89de006f-77dc-43c5-a22f-36e8d090f1b6","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":72,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"159d3cc3-fafd-4ebd-87a9-a4ccd13d03a2","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":72,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"43392f9b-6bfe-41b9-8da1-db57c53672d1","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":72,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"5036699e-5eb8-4349-9a44-296fabd2cc7c","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":72,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"108e34cc-9526-4226-9550-948faa7d585f","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":72,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"fd28699a-caff-41fe-99b7-b4dd4e585fd8","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":72,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"3e8613c0-0915-4ce2-a6a3-03154e2e8efd","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":72,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"9af400d1-ef3c-410f-85ad-b254f522c7aa","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":72,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"93e86987-d8b1-4019-9828-4cb618e8cbd5","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":72,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"52b8d12b-2475-4353-bacf-530945db0683","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":72,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"cf9a3c38-8085-4a38-93d7-3af6d03f10d4","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":72,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"1db098f1-3071-4c26-adc3-e6324555bc48","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":72,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"3f9913a6-a843-4457-8379-d22175b1cbd7","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":72,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"46b00165-f726-488b-b611-7ab44a3d75a0","block_type":"box","text":"cycles.","page_number":72,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"e0a6a0b8-7f7b-478c-be82-8ab807a056ab","block_type":"box","text":"Tracking Stocks","page_number":72,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"c202bf3c-2b54-49a9-9310-a38ba5d36191","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":72,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"e600e934-dfb0-40d9-9c59-e64dec88ce41","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":72,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"dd517993-c8e0-4c1f-8525-966cf9aef8a2","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":72,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"774308fd-96d3-4c65-9c4f-f4972d0585eb","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":72,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"dde420b3-337c-468f-8b39-cda079438f6d","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":72,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"5f3fe016-d43b-41c9-a898-b9844444f8ab","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":72,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"fd238496-6f7c-46f8-812c-0d1602d3ba83","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":72,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"82641526-7689-45a5-b41b-45576a8b1ff1","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":72,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"ad345da5-c354-4483-a097-2b0220c7db41","block_type":"box","text":"II-27","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c6cc137-235c-4245-b4bf-7a68709fc276","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab7df10d-1b02-4e2c-833f-3b88f33d00c0","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":73,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"4b7972e8-48ba-4904-b993-77ca9c5c9dbd","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":73,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"1eb227d2-d549-43ac-ada6-8aa4d73cbb77","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":73,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"3bea1975-e287-4343-8259-0b310f46ba73","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":73,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"da0d2b93-3e30-4241-859f-d9eaa96bed03","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":73,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"9ca00059-4cd0-41ae-bf5c-6a919cb0bae0","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":73,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"1ce804be-10a6-42b2-99ef-370d21b0de3c","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":73,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"2cd4fc5c-0bce-41b1-b336-7cae63e4591b","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":73,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"000dae0a-ea3a-44f6-863b-85366d893c11","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":73,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"65fc0831-8507-4e88-b4a3-a97036a5ced1","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":73,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"072aa422-438a-45f5-a3ba-70d2f764251b","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":73,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"2a29230f-fb08-4b05-98eb-343daba23d07","block_type":"box","text":"ETN.","page_number":73,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"0a002641-cdaa-4af8-92e6-1f0966d16c14","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":73,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"4b110e02-0d0d-4bb4-a8da-be12f06dc713","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":73,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"e4936c90-2282-47f7-9870-0f2be4e1a663","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":73,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"7d3c8087-74f6-42fd-a070-768122847546","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":73,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"261043a0-72d0-4223-83bb-abfdbb39c288","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":73,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"1e1be76d-ed4a-4918-9524-4bc95516659f","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":73,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"bd23caa6-caa7-471d-87cb-fbe550ceb016","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":73,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"1cb3a78a-5fd4-4b70-b260-85859c114b7c","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":73,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"c47471fe-45b2-4ee1-bc3b-0b5e3e9eb6db","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":73,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"be7084b3-4044-411f-8892-c8ee4eeba5ec","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":73,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"080a6e5d-63b2-4868-92eb-1ba9f95b75dd","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":73,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"f88a6fc4-18a8-4e6a-ba61-fd2cf99a33ea","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":73,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"b4aca7a9-445c-40d2-831e-90d3c827c89d","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":73,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"e6723597-f94a-4396-a5a4-1d6dcf228577","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":73,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"573bf36e-cdea-4d22-860b-716cbe2dd0fe","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":73,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"15c7cf4d-6f80-45e4-9b46-7105b48addd7","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":73,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"259b86f5-01ad-4f6c-8eae-23e21a3f3f18","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":73,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"e0ee1712-52e4-46c6-8825-2a34cdd7f3c2","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":73,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"41aeec48-89fd-474c-a9ad-b544606cec46","block_type":"box","text":"Foreign Investments.","page_number":73,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"5b894556-2e47-4de4-b538-cf6d54924971","block_type":"box","text":"Foreign Investment Risks.","page_number":73,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"58846607-ee55-4f6a-a9d4-c060af038ade","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":73,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"54746a1f-d16b-4fd6-b0b5-944ba0c9dd9a","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":73,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"8533ccbb-726d-411a-a78e-3809530d5294","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":73,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"3c1d955f-cc94-49ed-bc65-f6fb472091cf","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":73,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"91ee0572-558e-4bff-8435-39ac60213bf6","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":73,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"7856e7d9-177f-4b52-80c3-97c2d4395de5","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":73,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"2c63462c-a7b0-46f2-92f3-73a0cfb700e5","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":73,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"99e9b7fe-58c4-45bf-91e9-c35c8c23d2bb","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":73,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"72fc622a-53c8-4738-b443-7ee31d6d8d53","block_type":"box","text":"benchmark index.","page_number":73,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"c4ff29b9-2a95-46b5-9d3c-16f91881ddb5","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":73,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"a42e3dbd-86a9-40c9-889b-e03d7258cfdb","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":73,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"79055102-6e62-4a64-8590-d5956b73a0b1","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":73,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"57c30d0b-5370-47fd-bef9-987de4dbbe18","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":73,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"910ed701-1357-4f48-8551-bcb708a63c7e","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":73,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"4c938edf-65ee-4152-83fa-30dc3652d371","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":73,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"44ca3a58-eff6-49c1-a3ca-4456884b244a","block_type":"box","text":"securities and zero-coupon securities.","page_number":73,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"803e22d0-7bd5-4c26-9f15-bc17bbd960d7","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":73,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"45763b87-c6c8-4492-8222-3ca03fb4aa7c","block_type":"box","text":"taxes.","page_number":73,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"d01d424b-d7c4-4118-8bc7-046712a2c1d7","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":73,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"336be288-3fcd-46ba-a70b-d7202e3b7e0a","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":73,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"005f8e31-d93d-42d9-9c40-e85d9cb0c325","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":73,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"b4daefc0-17d4-4561-885a-1ef432c1f3ce","block_type":"box","text":"II-28","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"59715d5a-6a16-4783-ad81-8a9eae7ecabd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd1c5407-0e69-4536-8925-b3642f1d4565","block_type":"box","text":"underlying security (","page_number":74,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"aaa542f1-6b96-499f-873f-47a79b0149ef","block_type":"box","text":"i.e.","page_number":74,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"16786aec-d0d1-4ffe-99cd-1130d4abbf7d","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":74,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"3424a8b8-b0ef-43b9-9250-4c5d83504712","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":74,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"316a9f66-f111-4bf8-83e1-15b04ac30182","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":74,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"db58c3cc-21d4-4c8c-ba40-94960d7c4c85","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":74,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"97376e2e-09bc-4b33-b9b1-2c617642248f","block_type":"box","text":"Foreign Market Risk.","page_number":74,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"7ba5a2ce-dafb-4a24-b6ea-8873f08b367a","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":74,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"8756b6f1-87d0-4a0c-bfbd-7a994921d2b6","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":74,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"903eb4e9-56f8-4532-9e34-5267c2b94566","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":74,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"0d239ad8-8480-48d1-b1e1-dad2353535a9","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":74,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"85690bfa-be72-44b2-b735-88a37789d3ca","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":74,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"38bc4408-3b74-4f24-a208-e668d3d93733","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":74,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"4fc9736e-89a2-4470-aa80-f1d94856e687","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":74,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"b53ec216-17f8-4d33-a28a-7ae221741569","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":74,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"9a0c50f9-a741-4cf8-916c-1ae8a18b8d4d","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":74,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"e744b936-e1d9-4d25-aee8-660a4b84e8b7","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":74,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"fc238a43-c81b-4f8f-9a45-e71759359df1","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":74,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"b9bddfd8-9d3d-426a-a90f-dfa15ce5da8f","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"25ed39bb-755c-447c-84f8-d7e6c7de0b32","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":74,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"cfe2c3e0-6963-4fdf-9d10-11034b33e6b0","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":74,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"8300091a-d49e-426e-b3e2-6be93ce9ff87","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":74,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"78dea9de-27c1-453f-b62f-a72506f1518d","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":74,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"c3da76b7-7a9e-4950-b1f6-1f1fb47f5a84","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":74,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"b5c2160e-7d32-400b-bc29-eaf717661450","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":74,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"c441ba89-4a72-4181-a8fc-c36816db5095","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":74,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"3486b7cb-7491-4441-a7de-c2fa166d5725","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":74,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"7df87c52-832c-4eb6-8d96-b4b873dd78ca","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":74,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"744eaa75-6bf7-42c8-8027-420ae74fb54c","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":74,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"79c555c0-854a-4900-b84e-b58c7946b168","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":74,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"e593a380-1988-4f95-9921-9899bd65b5be","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":74,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"b52f80f8-7a4f-4a5f-ad20-7f46afa3cdc0","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":74,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"92081d30-cd34-4735-b949-d748fbcee574","block_type":"box","text":"Fund’s operations.","page_number":74,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"bd3ac61e-4cd0-498e-a2ae-838316b28a6f","block_type":"box","text":"Foreign Economy Risk.","page_number":74,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"857f7e19-8c00-4e1f-a58e-f9d775e94653","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":74,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"98fa973e-0212-4a02-8a06-1dde1b338b18","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":74,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"bebca67d-129b-4b28-8cbc-4e694484bbbe","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":74,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"1ea8895b-3d56-42d1-a1a9-c110479e4119","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":74,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"ad9a5a84-9bbe-4ad5-8f42-8c576656ba61","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":74,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"72c392ae-9053-4238-9ed5-6b4f4aed02a0","block_type":"box","text":"measures.","page_number":74,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"67330c6d-5068-4739-baa5-42ae7ff48448","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":74,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"686e44e7-9b49-49d7-b2f0-aa9f7397c4a7","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":74,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"c546521c-af22-4d78-8472-30fa89e268b8","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":74,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"96cde894-8142-46a6-af43-8d80dc0b2a88","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":74,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"588ba6c3-74d7-4355-a130-e679700c779b","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":74,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"55223bfd-7135-4b86-9005-af6d4cc3b13f","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":74,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"a544174f-084b-413b-b98d-5e4a903c9835","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":74,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"00b43cab-8da1-4381-a925-f572738f3021","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":74,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"7e5f9a6c-5e46-426c-ba50-75a99b84ef05","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":74,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"45b3cfc8-5d07-4a0b-a22c-b14b640bf392","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":74,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"bc0fb75b-a2d4-4fb8-abe7-fb92034bb5a8","block_type":"box","text":"United States or abroad.","page_number":74,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"673b2cb6-7c52-4116-8ac6-d11a2895c559","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":74,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"b596c6c2-4ba7-40e7-95ff-6b8c2a6f99b2","block_type":"box","text":"Many foreign governments supervise and","page_number":74,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"921ddd0d-a8b2-4905-86d6-caee29c1a5e8","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":74,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"afb34a13-fc83-4323-b13c-a13c88707363","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":74,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"bef29a96-2446-450d-b974-fad3d3aa86aa","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":74,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"b826f540-4974-4ebd-b2f7-57b3640ca482","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":74,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"f1f98bae-49b6-4086-a031-6e5c59ab9865","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":74,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"456a93ff-53f8-4a8c-b805-b90a2178f7b5","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":74,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"8ed6d3cf-25b9-4fe9-bd6d-4418ac8fffeb","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":74,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"200da4b6-b302-419b-b3b8-9f57e58d0f01","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":74,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"29799bd4-55af-4b21-9d71-44f7f4c070ac","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":74,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"42349ace-2e50-4ed4-b26d-e3531d252db4","block_type":"box","text":"II-29","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"60e56da9-a83b-4f68-a082-a772a7a64aa2","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbcfa18f-fad8-406b-a624-57ef99e5c1f1","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":75,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"afaa4421-803c-46e3-ae68-d64cca294724","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":75,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"c95e0c40-506e-4c2b-84da-fa0089f43b73","block_type":"box","text":"investments.","page_number":75,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"a0a155bd-b302-44c5-8f79-c6c1262fcc95","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":75,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"6f29284c-5ae2-40c5-a0cc-5efdfbcaaeb2","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":75,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"28e8fc07-c81c-4359-bfbd-a33a49bd2f47","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":75,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"486cb9d1-7f91-4561-81c4-8ed231bc51cd","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":75,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"986f9a85-002f-47f9-a61b-acfeb8f93955","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":75,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"af47c7f8-2577-4ffc-91da-5d2fb401939f","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":75,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"641ff49d-ee73-483a-943f-9de1ab9477ba","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":75,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"70e3b73b-7b27-4fe2-8b26-07f736c96d71","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":75,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"bd1cefdd-9011-4269-a5af-ce6e69fccd89","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":75,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"5ff1deef-56d5-4f1c-8278-ca150f97d04d","block_type":"box","text":"States.","page_number":75,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"ad61af48-8207-4734-a4bc-4ab0488e8d5a","block_type":"box","text":"Publicly Available Information.","page_number":75,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"25e31f8e-4c73-4814-865b-c1ac1bf7db3b","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":75,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"547b8748-d0ff-4db1-a9ff-608d61710096","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":75,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"66a5cbec-6758-4675-8dad-7bc2aec45e60","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":75,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"80897d55-d1a1-4928-a9cb-f3f3b23db25c","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":75,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"84f6edea-4316-4795-ab70-aca9e8d683d6","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":75,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"510a3f7b-e562-4a52-8fb7-a5b73aa7839f","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":75,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"459bf741-3bbb-4a8c-8cb7-aa9fb43df58e","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":75,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"d3cde5a4-f33f-472a-9340-f708a04bee32","block_type":"box","text":"United States.","page_number":75,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"ada1d0c8-677f-4139-818a-88c0ec24dfe9","block_type":"box","text":"Settlement Risk.","page_number":75,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"4518333d-8971-40f8-b6c3-e5d00a8a27e1","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":75,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"25d9d45a-11e4-472f-a98e-452b04616899","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":75,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"c687db83-0b71-4c7e-8374-7606fa7f7b81","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":75,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"2d8f5bba-aeb4-4906-b8e2-52f4334ec6a2","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":75,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"c03a8ad6-f068-41bc-ac83-bb280ecc87f0","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":75,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"930977d7-9f41-4110-b5ea-7be07e06f340","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":75,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"f23fbcd7-00b0-4a6b-a91a-fb2045e898b4","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":75,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"4f5f1593-aed6-43f7-b12c-0535963bf1b1","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":75,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"420ed759-e5b3-4618-8fc0-1f1134c8e2ca","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":75,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"43e347f3-30e0-48c7-9672-b422dd2e22a0","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":75,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"5ea66c1f-060d-4dee-a636-1a8550429844","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":75,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"91c2759e-ce5a-4eb3-9fc1-cdd50e5e0bc0","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":75,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"7d01e586-c895-44f7-9a02-a785fba79f35","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":75,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"f9fbbf52-e6c0-47cb-9e91-b5dc68294d9d","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":75,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"3098b321-7044-44f6-9568-4a72dcfffd27","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":75,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"b1182e0f-1b53-49f9-a159-0be8b165b00a","block_type":"box","text":"Sovereign Debt.","page_number":75,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"04c35ba2-2015-43d3-b77a-be01c3bb2f41","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":75,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"79a1f7df-f1b6-45d0-9dd4-ca4b36d299de","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":75,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"ba0d374f-6170-4ef6-ae69-047d09a1e6d5","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":75,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"3249783b-b52e-44d7-b74b-e7fce32d64e6","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":75,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"cd68defa-419e-4a84-9a9e-d2e8d4d7f032","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":75,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"f770f704-6849-4969-9f0e-a865348dc8d2","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":75,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"e597a246-5808-4d46-af2a-7093dfe963b5","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":75,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"13cc91cb-ef6d-4436-8a9c-b6974010a5d7","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":75,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"4621c0ad-de30-4054-bfb6-9aa4de4bc9c1","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":75,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"7a6073a1-eb66-46e5-a082-5e79e83c74ef","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":75,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"4db64089-6300-48a8-9ab1-a911d4f6f566","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":75,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"377799f5-c798-4221-8031-c02ff34d7c91","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":75,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"b48f4c49-6156-4682-805f-7856c693b421","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":75,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"a46efc18-1a0f-4dd8-9f59-665f6d845c1c","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":75,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"de2343f6-02cd-4492-bf0b-9f1389b1b0ae","block_type":"box","text":"debt.","page_number":75,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"38836c3d-e77d-4998-b9e1-e4a51499c07c","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":75,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"5dcf152e-689f-4d60-b6a9-4f609694f161","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":75,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"eff20af5-a499-4858-9218-6fa0cdb7bab7","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":75,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"315be72e-d2ba-4468-9bcc-8780d293ad84","block_type":"box","text":"II-30","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50a4f7fc-9e32-4c21-966f-704774843eea","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53a74e2c-720f-498b-871b-3a5dc850d665","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":76,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"7c9a6ddc-5242-43ae-ae5f-85b5fb9be1ba","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":76,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"fd9a065d-52df-42c3-82eb-bd0fdf6cb288","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":76,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"e9f5e7ee-43df-48d0-87f2-d811753cb3b1","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":76,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"8a69d5d1-28ff-43db-9eac-b3b2c5cee9ab","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":76,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"9a5ebd44-0269-4f80-a8d4-157f0c340b61","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":76,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"043a61f4-fdff-4354-8732-bf7234869129","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":76,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"df63c2d8-77d3-4921-9312-fcca679d72fa","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":76,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"1cbbbf79-44ba-41ab-bca0-858a15074f28","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":76,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"c0765238-6d6b-4ea0-bb2b-ec1bfe63b70d","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":76,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"78a8176a-2234-41b9-a3eb-0bfdefec9f58","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":76,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"32fe6476-28e7-4331-a1ad-f1514e9991de","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":76,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"a9019a30-3ba9-4021-ac00-ee60e48df21a","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":76,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"8a8c1a36-3390-4e72-a027-8e063ad369a8","block_type":"box","text":"in the Fund’s net asset value.","page_number":76,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"b5c07a10-908b-4f4e-a67d-4f44d2b2b910","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":76,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"c1054c0f-132b-45c1-b12a-3276de31bd9d","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":76,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"c114ee2c-6144-4d35-8013-4842a9090d2d","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":76,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"7315cdb6-a9dd-4ea5-8966-503bf123dfa1","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":76,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"933717e1-5804-46b6-87a2-d424d35c7ccd","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":76,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"48d4c716-7923-43f6-bd6d-042801600f51","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":76,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"4dfaa4a9-8325-4a69-92dc-bd3c6b14f325","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":76,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"44473ca7-7cec-457b-8a95-065f98c3ec6d","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":76,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"5fcadfc3-47c3-49b0-a1e4-184b2a4ef8e3","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":76,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"f7bcd748-ac25-4a87-a667-2655c5c6977c","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":76,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"658f5595-ef5f-48da-9681-f618c6b07b9b","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":76,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"ecf84ca7-2744-49ac-82a7-5d9943491764","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":76,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"2b76251b-1ee8-4782-b479-ea375c6446f5","block_type":"box","text":"United States for trade. 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Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":76,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"2714f2b5-1037-4149-a6dd-a0d5b8824ae3","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":76,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"76054316-66ce-4d02-af4b-23205051ef6c","block_type":"box","text":"Illiquid Investments.","page_number":76,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"f0d239ea-d1ca-46a4-a873-9544807836ca","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":76,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"9b73902d-69a8-494e-b9a1-be7bf19b0e1c","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":76,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"8cdf602b-c225-4d50-9836-0aff81a11fc8","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":76,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"2488efb5-7d3b-4e36-9a94-191911a225c8","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":76,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"36d00e2f-d035-495d-ba19-d43b905f0aac","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":76,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"ba7e4178-b39a-4ccf-ac9d-56b1942cfe00","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":76,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"69a25b14-96da-43ad-a9c0-da5e43cb7bb2","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":76,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"883224b9-68f5-4d34-8501-75795b72f02a","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. 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In addition, if a","page_number":76,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"d957ec7a-26c3-4f1e-b2ea-2fada9b7c1c5","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":76,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"0ea81e1e-f76c-4127-ba2c-c3d381451a11","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":76,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"dcbbadb5-a0d6-4e3d-9a8a-14dddc51bc1b","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. 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The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":77,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"c3232465-5580-4e9e-b412-2dbd6e538b2c","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. 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A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":77,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"55f5cbd5-d4e5-4ee4-9096-985e4ace670d","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":77,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"9c46ed81-a004-4495-88e2-aee3a5ff4b90","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":77,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"fa3185f7-7862-4120-b221-0035eab8adf3","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":77,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"c1c7edc5-84c2-4190-bf77-aaeeaedbe405","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":77,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"85f4fdca-4146-4286-b15d-dc7b1489a085","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":77,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"44d8de66-e785-405c-8f69-99559f23bac0","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":77,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"e962d18a-006d-4a8c-8319-6db63d4883f5","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":77,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"9a130cfe-5a8c-41a8-8dd7-fd0bb37fcd60","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":77,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"c924e3fa-af31-4319-b9c3-94b16cc52f6b","block_type":"box","text":"increased market volatility or other unusual market conditions. 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If the securities continue to be included in the index, the Manager may underweight or","page_number":77,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"515dc18f-4eb7-4432-a9e5-4da591970a8a","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":77,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"05cef85c-8266-4256-90c4-30ae87498734","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. 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BofA is","page_number":79,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"1dcd05bb-dfb3-40b9-a1bf-e3f28dac6783","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":79,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"3cb31cdc-7687-4bdc-96fd-442513de5cfc","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":79,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"76e21ae3-47e0-4a5e-a881-4a17d4fc3cf2","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":79,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"756c2a9c-78cf-4438-8ca6-39ed00c6ae60","block_type":"box","text":"completeness, or otherwise.","page_number":79,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"34f05ffe-5319-4db6-a1c1-fe742cd5ee69","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":79,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"8e846ff3-b8d5-4041-b076-fcd4d754d4ef","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":79,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"5ed9224f-a2a0-4da4-beb2-2134a8b822ea","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":79,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"a969d104-f814-4106-8195-fa06d97589dc","block_type":"box","text":"Indexed and Inverse Securities.","page_number":79,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"2cd561ae-0b67-4827-a83c-1757304bc5fa","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":79,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"2dc59408-6492-4fac-8331-3b4a1cc4f32d","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":79,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"4f5be3ef-8b6a-4322-92a3-f910d847967f","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":79,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"52f1f910-cb04-440c-b157-317400c7aec4","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":79,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"df05ead5-fb4b-4cd7-a2d0-4ac5146711eb","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":79,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"657bf303-827e-4725-a9b4-4b49ef096a74","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":79,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"e618680f-26bb-4773-bd3b-dab213857d3c","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":79,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"06c805a9-8686-4075-b8b9-5c3d30211e66","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":79,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"aea48b34-74c4-43df-b224-3cfa16c76e28","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":79,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"d9accef2-97e7-44d2-9992-8aec485d5797","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":79,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"7cb2a106-b4ab-460f-a2d7-3ccaf0c697a3","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":79,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"4e765712-786c-4fde-b066-a6ffbbe41763","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":79,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"3d3564c7-cba6-4bba-b9c8-5d70329dcd6a","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":79,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"99ff22bd-cbe5-406b-bf23-1498a62294d9","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":79,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"f30cb80d-2d79-412e-b286-2325fe7d3e9a","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":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"d50d1bfb-2f88-4f6c-b3c1-29c17902487f","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":79,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"06879ff7-d49d-417e-b646-eacc1822a985","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":79,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"d8419e52-180c-4f61-9b33-be0bed3b36a9","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":79,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"fdf5f5f7-c51d-49ce-825f-c79b23af7ced","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":79,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"f36f38e1-fa40-45a8-991b-a4b2ac5edfd6","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":79,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"50ec4860-735c-424b-a0ee-eb52a4124373","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. 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Furthermore, where such a security","page_number":79,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"a3397495-1d1f-4960-851e-706ee0c1586e","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":79,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"ff1105bb-e3aa-4c36-ab18-85b3f024e8f7","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":79,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"08192d7a-3665-4771-bce9-edb37322cfec","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":79,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"5fd3f631-4c87-4c8a-8d07-514538931e4e","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":79,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"d50374ee-94ae-42d2-926b-5969059534e4","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":79,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"4d74f821-e437-4d9e-a9eb-8c0f0ea38b11","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":79,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"dda8ba5f-8fb1-42a8-91af-fb9e3e5cde65","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":79,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"59a2e2a2-f55c-479b-aa32-adfa06c08d3b","block_type":"box","text":"Inflation Risk.","page_number":79,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"e61936f9-aee4-4a7d-baef-d13ce58bc67a","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":79,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"24be7502-2642-4fe4-a0ff-6fcd8a88edbd","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":79,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"ef43033a-7bbf-4c49-9561-d4b448186c57","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":79,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"314ff452-953f-4b6b-bcfc-36470b7d6925","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":79,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"a31aa0e9-277e-477d-8d93-d0b7f2f23e34","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":79,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"49747ade-c3ba-4130-b265-ae1529a91bdc","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":79,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"b7825bf5-4ec4-494c-a8ba-3a13338714fa","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":79,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"4f3f2636-5385-4544-bec3-a84cbd5ec58f","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":79,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"d9efdfac-6e51-4bf9-8deb-88ea0a96fee0","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":79,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"d57db931-ff75-4f05-87b4-7ad44d2d3bae","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":79,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"30b42df0-8bc8-4fe0-9f2b-9e8ed545915d","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":79,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"0293859e-df6a-4ec0-9dd6-9b8e8173cf4a","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":79,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"e6410b85-bc16-4c22-bd2e-23ef6d63575c","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":79,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"75c121ee-c73f-4a45-ba0f-79e464e46c57","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":79,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"45b545b3-8887-4296-9d0c-e5198fde73cc","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":79,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"b54819c3-7e3f-4f73-a7a2-c71fe1fd5e7a","block_type":"box","text":"II-34","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84f45f5d-bb26-4b59-a7ba-e0d4dfafcfeb","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32a4f6d0-5d1f-44a3-bb68-f4c1007ea8f7","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":80,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"a72a9df4-34b1-4164-a440-96a3d90875f9","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":80,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"d0d9eadb-cd15-4506-8107-2715c176f40e","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":80,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"343be331-6fb3-41be-9928-52aa4fcf129c","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":80,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"c4038037-2e39-41df-be3a-26d987f62d26","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":80,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"9047adc2-ff11-44ae-a229-5b5475d2197c","block_type":"box","text":"be available for very limited periods.","page_number":80,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"99073c12-690b-4d64-b3bb-68741f9279ad","block_type":"box","text":"Investment in Emerging Markets.","page_number":80,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"9c7389da-127f-4726-bc95-952a02403ed5","block_type":"box","text":"General.","page_number":80,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"f6107fef-7d38-4710-bf4b-0b411cdd4544","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":80,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"873fb6fd-b94c-45e4-abf9-8aeb8d1e4b32","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":80,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"c0ce4bc3-14f7-4bc2-b8ad-6e54cb5ebd28","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":80,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"069fb5db-ba96-4001-b828-864ffba641de","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":80,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"8e49239d-12d4-4f1e-973d-c35f351ce8be","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":80,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"8ad3763d-0c3d-4c90-85a9-1168f9c9509d","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":80,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"9e39f419-390c-4157-965d-9b44134dfbb4","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":80,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"c4cf8141-d207-4477-bb84-e40d792ba733","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":80,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"d08516d7-ae75-4fc0-a00c-827f534de7d0","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":80,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"e334f004-7ef9-41e5-bfbb-373b09641ebc","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":80,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"27a9d12b-9e4e-4949-ae8d-7f11f0c080ea","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":80,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"c7e1cd15-a3a8-4985-8c6b-942c9e7a45e5","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":80,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"dba5cac1-07e8-4919-9e95-f38b6ca3de35","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":80,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"cdffbd31-a578-47a9-9f10-534fffa2419b","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":80,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"9b4566ab-c4e3-4810-8c9c-82d77274d7ec","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":80,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"96551410-84f4-444f-ac0d-639fe48088ba","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":80,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"c6f11f26-f130-4939-b490-4817fccc8107","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":80,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"b7138d2f-edf0-4fad-85be-43562ac65887","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":80,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"2d2c36f8-808c-4417-91cd-15f51d04dc1d","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":80,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"543bbe6b-e843-48b8-b468-bd938f318e04","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":491,"width":767,"height":11}},{"id":"1e4d4b93-810c-4b87-b7d8-b10e7ca0277d","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":506,"width":814,"height":11}},{"id":"9b382af4-176c-47b8-8fb9-bd15b7ba6872","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":80,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"f96c023c-eb60-4eec-b668-06ce29051132","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":80,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"c5cfd9ab-0f54-4d43-af67-b24ff847448f","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":80,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"8255d889-afa5-4d35-a0c0-10fdd6e89a9e","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":80,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"e0edd0e2-1d4e-4ae1-9bb2-cc8d6c9c3c9a","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":80,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"7fc3b136-0d75-493a-82a4-3e77f9ec167d","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":596,"width":838,"height":12}},{"id":"fe800258-f63b-4190-9b7d-308af2d93fab","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":612,"width":788,"height":11}},{"id":"55a9b700-ebf0-47ca-b2af-616e75208070","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":80,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9bd8667e-2eb1-4a4b-90d6-89a4b6758544","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":80,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"f964a82c-bbe6-496b-8f7d-be4f8a3d53ee","block_type":"box","text":"volatile than investments in more established markets.","page_number":80,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"c655ae3b-f7c2-43dd-8420-ca56bde4cf5b","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":80,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"0865c7d8-7674-438e-8e7d-587a9de5e404","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":80,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"fe268d8f-a9dc-4936-afcc-b6b23a64e3cb","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":80,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"e6afeda4-98b5-48a1-8e1d-412051c21034","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":80,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"2ad24a83-9928-4b8d-84b0-3ff9f0b4d383","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":80,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"e8628129-894e-4208-8419-8be6456d2d36","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":80,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"8c87b51c-abe2-431d-9c35-8391bbd0cc11","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":80,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"ea3287b2-5f2a-4262-a87b-3a54f1871a41","block_type":"box","text":"acquisition or disposal of securities.","page_number":80,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"d581e43d-5789-43f1-ae1e-1be506b5e23d","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":80,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"87116688-7cdb-4b23-a947-57deaa200506","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":80,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"53781c84-506c-4118-bc2d-ef104a9c608f","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":80,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"5f1df60e-5c7b-4a44-a48e-e547f8fd86c6","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":80,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"09fbf964-34f3-4746-87e6-4d01bc55ed91","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":80,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"8f1dd3f0-2097-4d17-8cb0-45ffd764f0bc","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":80,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"1f50b59d-0f30-4708-a768-cafa49a8945b","block_type":"box","text":"II-35","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ebcccfba-8bef-4f10-b295-f276f71c660b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f96e2a20-8d9d-42db-b8d7-d4acaec29533","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":81,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"c06e1e0f-2325-44af-b9f2-6ec02d4fb518","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":81,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"1f40ea56-2c3d-4857-a964-a40175a9cc0b","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":81,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"618d6479-7b17-4f24-bca7-0f401bf675c9","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":81,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"30b5c9a9-4f73-4880-beba-39fa4644bce6","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":81,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"0b063ad0-3b27-443a-9438-787472537c07","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":81,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"17a01ad9-fb68-4fe8-ab76-11be07a84816","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":81,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"21a3c9fa-3eff-494b-97fd-9535b043eee4","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":81,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"30bca141-5814-4795-bab7-bf3e63c8bc6f","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":81,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"a7585dc4-fc82-44a6-871f-8cad66fac8de","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":81,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"58ba7827-7458-402f-8da4-3e6ac20e02ee","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":81,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"2d32ca29-a707-42e2-95ea-cfa4546fc691","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":81,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"db2b0a32-fe3e-4513-b871-e3296a7f13f5","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":81,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"ea41c7b1-7a91-4f5d-9845-2b21ac28ad43","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":81,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"a2d2cb2e-c7d5-4b09-aebf-fafe5297d8e3","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":81,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"92bd4ae7-a244-40c2-9010-13c4c6add2af","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":81,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"9e275aca-5794-4014-bbaf-ef878f9abf29","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":81,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"70662745-09bc-4718-9136-4bcf73c2a4cd","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":81,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"a27fe170-5112-44ff-983b-2aa782b7caca","block_type":"box","text":"performance of the Fund.","page_number":81,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"2fe16dc6-1136-45b1-9d11-36f2d136542b","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":81,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"80fc2df9-c025-47b9-9976-9a9c9e3add5b","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":81,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"810c7375-ebcb-4db9-9c59-79ba83d4a029","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":81,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"87efb826-fced-45fe-bd1e-87a43398415b","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":81,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"ec8a2012-db64-4ffd-a0f7-fb15b3cb1fba","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":81,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"9730d14c-f353-4dfe-9c1e-59e2cfb9a631","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":81,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"85ab2468-0caa-4400-b314-0ed7299ccc4d","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":81,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"e0eff621-cac9-4fc3-8f97-91580050cb4a","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":81,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"e5a35954-ac8a-4284-a833-41c3277f7aa9","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":81,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"c058e9ba-cd3a-49bc-90a6-9f6423729304","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":81,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"edbee29b-cc20-4020-92b2-9c547ac2a2d9","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":81,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"cd819dd3-bb32-45d2-8854-eeaddb0138b8","block_type":"box","text":"affected by a variety of factors.","page_number":81,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"4a5ed307-5c91-45ca-93bd-9403a2f1fa60","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":81,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"6a97633d-9e5a-41c7-a08d-73dbd4bd6c01","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":81,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"95c2ab08-2525-4130-b84a-fb7c8e221418","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":81,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"d01d9c2f-5580-4457-a935-a91ec7142f65","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":81,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"3efafa3c-4563-4a2c-8d62-b6b53b536995","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":81,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"5f1e035d-ff7b-43df-8203-26640c29da83","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":81,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"c741599f-aefa-4df0-95dd-febbdc4094c8","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":81,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"2a2bdfee-d912-4715-ae6d-aa8dfd85727c","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":81,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"3cb8c379-b2d8-45c2-80b1-37f11cf0cd5c","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":81,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"5aa59b29-e964-4864-a281-fddbd1e8b45c","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":81,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"6fa0bdaa-ca42-48a4-a5d3-f4df4e8eb12e","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":81,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"e8b87ba3-91ab-4a09-8f97-ca8372852c84","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":81,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"e0914d0a-4b6d-48b3-bd83-ca82cc8d3a5e","block_type":"box","text":"nations.","page_number":81,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"38118563-aa1c-4731-8e48-33d5b16160b7","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":81,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"c6897b35-1068-42a9-90ab-999bf62a7cd3","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":81,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"752e2540-3f9b-444c-8eee-992329bf3f9b","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":81,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"efbb06f9-1961-4871-9be7-c2a6bf82c32f","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":81,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"c6c88c5c-0bbe-4124-a4fb-85b8fe77ae23","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":81,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"c95a6d69-87bc-4d93-90cb-64c4450f6566","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":81,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"eeebed1a-a8b0-4abd-87ef-28b06175b014","block_type":"box","text":"market Asia-Pacific companies.","page_number":81,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"89bed8ab-e4c1-4374-a79d-e040ae54dd12","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":81,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"74c75730-16c5-4a8b-89b3-1b346bc035fa","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":81,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"193a93ae-4a07-406b-846c-adbce1d86f1e","block_type":"box","text":"services for such securities outside such countries.","page_number":81,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"c6554d8a-f62a-4710-bd11-729678e714c7","block_type":"box","text":"II-36","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eb731a95-2700-4ad9-b3d8-53e786ba1790","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"89613811-3763-4cec-8a2c-f68f9d73e991","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":82,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"e6d29dff-9a49-4879-86cf-4da7a752f2b1","block_type":"box","text":"to commercial banks and foreign governments.","page_number":82,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"3a5dfcff-1c63-40b8-8e7c-b282bb851cdb","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":82,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"1d90dce0-f533-40e3-8493-e7ad34072827","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":82,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"c1fd8531-bea4-4ed5-ae95-82f17b317f05","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":82,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"62014b62-1e70-46ea-b50d-31180aecc3b2","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":82,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"5b24cf7a-3a6a-4dec-bdc3-1c2779c611cd","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":82,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"7e7e704c-a3a3-4190-acc2-0b604455e73f","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":82,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"f3920464-1aa9-4080-8857-07954b9900ab","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":82,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"c897aef3-813f-44fb-8b5f-a853feda3712","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":82,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"45778126-5d7e-47cd-b409-f92e71111c09","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":82,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"100330dd-5b1b-495c-9fb1-a4f4627e469c","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":82,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"f8486b3d-fe9d-42e8-b8d3-67efc079c696","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":82,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"c0f217f1-cbd7-4004-adb6-69bc2676e6e4","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":82,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"d606e316-22cf-4c41-a1bf-ff355be1c88f","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":82,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"41d41e6c-5bd7-4d14-a4cb-af6dc60a7598","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":82,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"6fc0322e-4132-4e38-bc07-7d4dfcafa6d1","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":82,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"c85cf3aa-cfe3-4cb7-92f6-1ba2d85c7f03","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":82,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"bc45a0d9-c35c-40f9-9a51-34e35a00b791","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":82,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"661a48d5-4526-4750-bc63-cc5de934be7a","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":82,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"0c006433-69bd-4749-a643-bb890ec940ba","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":82,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"4eba5c49-2503-482b-8eb2-69b488a8509b","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":82,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"13662937-71de-4e98-a9f7-62934379cf72","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":82,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"f67d1fe2-7e2e-446f-8a81-54c8b0766012","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":82,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"c6a381d9-1c36-484a-a067-818bab6190fa","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":82,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"bd394bd3-83fd-4431-80e7-9182ac9c81f0","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":82,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"51e82814-920c-4141-b8d9-6c2b37c1db8f","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":82,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"f91f0e85-8f58-47da-ad8a-b6a2c70cea59","block_type":"box","text":"investment at that time.","page_number":82,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"093c13d8-2e46-4b01-8696-8cf8976dd3c4","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":82,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"2a059bd2-0bd0-44e3-90ad-a22e741595ea","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":82,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"f8b1422f-1466-4584-8bd2-fa4b502405cd","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":82,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"f939bf33-9a3e-4b81-b76c-5e29a79fa949","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":82,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"06549f0d-a50f-4176-8e9e-3151c4407c10","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":82,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"f1c2ff52-d330-4c39-a2d5-50feb59aa189","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":82,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"9abd1075-670a-40b7-bb07-9b88cca2a453","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":82,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"8f0670cb-13ed-41c7-b6c0-0d4b9d995929","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":82,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"17170813-b9ba-4d31-9f8c-98b7ac3341b3","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":82,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"4e5ecbdb-1d9c-417e-8109-1595f4637812","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":82,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"afcd93f8-0100-47b3-8b95-566d001a62d7","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":82,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"5a8284f7-58e8-45ac-a0d7-b88f18a74df7","block_type":"box","text":"government).","page_number":82,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"ecae1de6-947d-4466-aa17-bc6fb0b20874","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":82,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"2f5ac2dc-d1d5-4a1e-92a1-cad924f22ce8","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":82,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"d28366ad-f01d-4c18-a916-0f9365134d98","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":82,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"40d93450-4634-401b-9d85-91fdfd3f3aec","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":82,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"c7ee6c9f-1f19-4c8b-b510-59882a65ba8e","block_type":"box","text":"foreign banks and other financial institutions.","page_number":82,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"dcaa9faa-e125-4f64-b8cd-ebe0a6107d43","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":82,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"8c80b5cd-62b3-479b-946f-56d8030db3a1","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":82,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"a8467c55-1959-4679-a711-51e6d0c88674","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":82,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"4a8b7dc3-4fe7-40c6-b671-3085688b51c9","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":82,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"73df935f-b247-4f34-a966-b3aff1a9e8bb","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":82,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"f8969ef8-1264-4a4f-a647-3322235cd70f","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":82,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"bf82a072-b63c-446d-a49a-15b4afb5dcc1","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":82,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"d8bc1771-22b7-49bf-8ece-b3d3b0581e34","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":82,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"70b1de74-c46c-40e9-8e21-8a8be2e955ef","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":82,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"db288c18-3032-42a9-9dfd-18f262c35fb1","block_type":"box","text":"II-37","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aa3cf0db-f777-4118-abbe-292697e777a1","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bab73c71-9310-4f87-a10f-3390da02c027","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":83,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"90c448e1-f6d4-47ba-906c-7929f1529490","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":83,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"018b48dc-7d40-45c7-8606-88648ae727e9","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":83,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"118b04fb-b298-412e-8100-0e93f2a8bd20","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":83,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"2211d39c-b84c-4f3b-9f91-44f1b8d2ee97","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":83,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"e7d7e8de-2c78-4b3d-8f5d-c92601628ac2","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":83,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"d395d117-1bbd-4044-9f00-e0a1e6c89519","block_type":"box","text":"foreign securities.","page_number":83,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"cc64e8ac-515d-44f2-ab4c-752d36b01332","block_type":"box","text":"Risks of Investments in Russia.","page_number":83,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"291cb99f-b700-4268-85db-66bb63ecddf8","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":83,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"4fe54863-b5fe-471b-8c79-11fa7ca76113","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":83,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"41844e79-3caf-41be-af44-6478deadd750","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":83,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"bc585991-9d40-43c4-8a12-8456199a2e88","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":83,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"dae62b79-524d-4f4d-88d6-5765cbd723e6","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":83,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"d9080750-2294-405f-9978-976cfa2fa5b6","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":83,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"5c6bb4c8-5f48-4781-9a56-0500f07703cb","block_type":"box","text":"developed markets.","page_number":83,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"762e8dd8-fa06-4eb9-965f-088f8a1b7b67","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":83,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"0dbb7b6b-5ddc-400d-9227-fd75592e3b8b","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":83,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"e169ef57-3358-4500-897d-e5e30502bc4e","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":83,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"1aa35128-2b6b-4fad-8271-9b482c0e9355","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":83,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"d70701ff-7af9-4106-813a-5e398dc7367b","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":83,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"4153dacb-2c3d-4c1f-b56f-2904c76e840a","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":83,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"72f9dd39-f56e-4177-95e4-d9fdebd67a30","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":83,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"75145e69-c894-44de-9772-d12184b77f26","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":83,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"79e333dc-0d9e-4d78-af9c-eaee0c50a031","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":83,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"8efd26b8-586f-4933-ab68-81b2d36bf8ea","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":83,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"b8307569-07e6-4db4-9882-380333a460fd","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":83,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"8e86286a-15f0-4568-ae74-b402bb280b2d","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":83,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"f0d637bb-2d16-4883-9e2f-d636ed715d28","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":83,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"241735f7-280c-4691-8596-2a7c15fa2cb3","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":83,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"1318efa6-21c2-4e06-8c60-7b16aac14067","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":83,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"2dd3cd50-4212-4e0c-927c-ebee828861bf","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":83,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"d7e5f463-f9a8-402d-a6f8-fa2f81760cea","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":83,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"1f18066c-7ee1-4772-8416-43803970eb52","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":83,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"a1071bcb-6a02-4afc-89f8-e89797a5c09b","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":83,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"e085912b-fb05-4550-a8fe-c802a36a7d5c","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":83,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"f14901ac-4f9f-451a-83de-5a3a2f32e5de","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":83,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"ff475949-6573-4ee2-82e8-057d424feb4c","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":83,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"e998975b-1cc3-4c51-99a0-474d5adbc7f9","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":83,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"9d69d0c4-fa79-45de-acca-663849c60a18","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":83,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"3b249218-14b1-491a-84cd-c271038f79b5","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":83,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"d7b1f842-26e5-408b-b7c3-d9af1f7d573e","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":83,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"e274e221-3b6d-4e95-b5e2-1ec592549501","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":83,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"dd627c9e-590c-48ef-b4f0-aa55c7666214","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":83,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"86287695-a357-4e3c-b828-dee464edf688","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":83,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"dd861289-4e97-429b-9096-0adcd03a63ca","block_type":"box","text":"sectors globally.","page_number":83,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"7d133214-4fdf-4aee-8834-0ef4f2896e41","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":83,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"c02d1edf-2eb3-406a-b938-6cfeaedb656f","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":83,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"8257a53c-0077-4a07-8196-f4d0e7dfda18","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":83,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"d3105bd2-e884-41dc-9ca2-8843d0aa050a","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":83,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"0f0448fe-7fa5-4886-b9b4-2ee6af9329b8","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":83,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"eebfed5c-0519-4acb-a59f-536b9bfc56a7","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":83,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"fec6cfb3-9388-4ce1-be19-d3a9019b9599","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":83,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"56536393-a124-4f02-aebd-81e10df62351","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":83,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"988b0be7-32bb-453c-86cc-61adf4da1a50","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":83,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"18346488-e917-4176-bcfd-c2324c3ba67f","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":83,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"daafe2b3-054a-4ef0-9919-17d7f53ff114","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":83,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"9485b077-e34c-4515-9272-2be2b66177a1","block_type":"box","text":"II-38","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"84636338-7964-4b6e-ae62-0fbf9cdbf49d","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e6144a70-cbe9-4d35-aeb8-44bfd2144c8d","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":84,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"796bae83-5cc8-43a2-ba3c-7a9394aba82d","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":84,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"b7c8402b-5c7e-4d9f-af0f-aa5f198fa929","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":84,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"0e7cd5d7-b688-4a99-87a8-b6eead400950","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":84,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"0f6229f4-7f61-443c-92f6-49ba5c0a2c93","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":84,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"dbfb4444-f97e-429d-b33c-c814de47084a","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":84,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"5daaaf23-5504-4655-8f6b-2db62bd78455","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":84,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"7a4d9819-6562-4893-99bc-6b7146053544","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":84,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"6afe68d2-e0dc-46c5-87bd-7015bede20ac","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":84,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"bbe198da-8a41-47ce-a6a8-bcd7be5ea97f","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":84,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"07510327-d8ca-466e-a0b9-09c9af85c6c7","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":84,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"2a70b0d3-19d7-461a-80b9-37fe093e1cd9","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":84,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"0742348a-6c55-408a-b3de-f426bb4c6135","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":84,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"73b8b6fb-a78d-4269-82a5-4560a95cde99","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":84,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"415f79e3-984f-410d-8852-4e1bf2a152e2","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":84,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"2e778ded-f8df-4a5b-8582-48806f69298a","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":84,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"21fd4d77-8db7-4777-8800-e53541bd8644","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":84,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"02d8a565-b2f5-4776-92cf-8f0b6bc9c838","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":84,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"ac051130-453c-41e0-a047-3b470bbdc97c","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":84,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"eb94abf2-636a-4093-a2f2-b9eeabb4265b","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":84,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"fbd5b99f-4ab1-4a46-9eb7-5712cd00c888","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":84,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"7534465f-3bd3-414b-bf0b-dc3ca52260a4","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":84,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"4fc1b80f-03e1-4fec-9392-07876aba6513","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":84,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"a8c12276-41cb-425c-9296-e66c6531e812","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":84,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"711f2603-285a-4ccd-bb15-9dcf1a094268","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":84,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"d071b13e-e5ca-475d-8626-b20713ecacb3","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":84,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"9ae46c46-a44e-4d30-8e5b-d51f71bd3986","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":84,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"d4e1886b-c00f-454f-b32b-ebab2e38953a","block_type":"box","text":"impacted.","page_number":84,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"13edf8ec-9465-4f27-97e9-6fea27a5279b","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":84,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"a99374ad-1353-40b4-aa02-dd6d90407724","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":84,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"4273085d-198a-404c-ae61-22c6c1cd4f98","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":84,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"0140a127-17e9-4e0e-b592-a3336a433fcb","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":84,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"1882b97a-e3a5-4366-85d5-ccd64af26759","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":84,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"9d2f62ac-0656-4aab-8c5e-dabf5384095b","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":84,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"d80645db-b0b5-49ab-adf0-051a2fec8ad0","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":84,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"72261967-fb95-4843-9a32-0c09c02a1b2b","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":84,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"ab56b46d-4eb0-4e32-9e54-22a97f274c7c","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":84,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"915212f8-4df2-4951-b7de-0a69ef10339a","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":84,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"05aa1399-b5a5-44d1-929b-6d21737c0993","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":84,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"e446f08d-a524-43ac-a7e6-2006606ff123","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":84,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"0d4b97f6-799f-45c5-8e8b-8d42d3ac2a25","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":84,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"e81f3f78-e4a5-4b44-a8f0-cd3ab477b7fa","block_type":"box","text":"economy.","page_number":84,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"4ecdca3d-9dd1-4c49-b1e9-d4203d0bda8f","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":84,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"09025fc1-1c5f-40b3-8971-39c20ce3de4b","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":84,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"b51510be-7bae-487f-b8a5-e198f45c8e43","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":84,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"b2f6592d-5657-4430-a450-883b9687cf4b","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":84,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"f85e7a21-1bf3-4916-a5f6-994be5c2ec2c","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":84,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"c27f34a7-bfa6-4a73-833f-f83d5d9a420f","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":84,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"47ad3d1e-c35a-4524-a1b0-2a7571752639","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":84,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"09503862-0fdd-4780-9ea8-e69549ba071f","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":84,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"9a484744-3d01-46cf-99bc-802cf7b7efab","block_type":"box","text":"typically the case for investment managers.","page_number":84,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"7b537bfe-9e4a-4b66-b2a3-3397bff851f4","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":84,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"07b7bb87-ead8-4043-ab3d-5267674a979e","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":84,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"d1b9d010-e1c6-474c-9581-8eba0bf4e5e9","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":84,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"5093ff29-7484-4228-bcd3-b89000b74562","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":84,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"7fd2b89f-8c58-4137-9e99-1b7c1f697763","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":84,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"99495cd6-08d2-4e2f-b7f2-d60ee8838688","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":84,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"9fb99297-cb8b-48a2-822c-61b0115dfb6b","block_type":"box","text":"II-39","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fb5eebd5-c0db-4883-986c-f04a27661552","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22d99b23-0e80-4828-844e-3f55c4851989","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":85,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"1d9e1b71-1643-42de-9503-9fe147ac3169","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":85,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"3150ed29-aa4d-44d6-b474-a6a1613922b2","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":85,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"11365f16-2d2a-424f-bd12-fc511b8fe424","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":85,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c037b6fe-c4f9-4fe3-836d-72e48666fc3f","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":85,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"5cb28391-59b5-4c17-9843-a1b6d9b22137","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":85,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"632b5072-1a3d-48a9-a3a1-e2ac268a0c79","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":85,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"b3a9ef40-b20a-4e54-bc3b-3045a12f5c0e","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":85,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"ba8a8c8c-d887-4c00-a10e-5123fbd2c458","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":85,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"3321c85f-edac-45f4-9cde-b5f0e65f1567","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":85,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"bc86bf9f-b99d-44cd-8dd5-57981ffffdf6","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":85,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"ca3aaf0e-f5de-4b66-b0e9-d49cb2a7ebec","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":85,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"37600ffb-e7c0-4ace-84e1-0e8e02dfc601","block_type":"box","text":"will be indirectly subject to those risks.","page_number":85,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"cf8ce4b5-daae-46f7-9173-493bd38f1468","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":85,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"f402a860-44d2-49fd-a461-8a76e36091cf","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":85,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"49e7c1e7-c8c9-4ba4-b4ce-b89fc4b9ab1c","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":85,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"a322c799-0714-45ff-b733-fe863669a69b","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":85,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"3f4b9b51-bc66-40e6-9392-43b709e3ea62","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":85,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"a3081086-dec2-4c94-adeb-d515c84f4aea","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":85,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"70091db4-684d-49bb-81a8-619c5210d25d","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":85,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"e3a30ad5-5c1a-4e21-b9f1-fc3414cc9616","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":85,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"c721bc2a-e559-475a-b8ba-cbcdd392c73a","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":85,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"41d4ce4e-dc37-4813-aec5-4b7d97300ff4","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":85,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"584ee948-0e04-4020-999c-ae3922466b25","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":85,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"535414eb-fb65-4075-b6f0-288df3604a34","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":85,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"db70629b-d226-45dc-b089-c43f9e754d36","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":85,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"504f151f-a113-4114-a6bb-8dcc4bbfd2d5","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":85,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"cd640292-91ab-4c5e-ad81-83d620704c6a","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":85,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"875e7f13-352d-48a5-a109-049ba553fbe0","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":85,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"ca55f206-aea7-4ed3-953f-acd917024747","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":85,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"e24f9c9d-8477-4194-9857-6a062b7043b9","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":85,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"74ebf0ba-7510-48a4-ac2a-d8bb5ba351af","block_type":"box","text":"impact on a Fund’s investments.","page_number":85,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"c4a211a9-2584-4b3b-8f06-81ca94e249be","block_type":"box","text":"Brady Bonds.","page_number":85,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"b4eefe8f-26a0-45b4-813f-2842ea4242f8","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":85,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"be41710a-621a-48a8-b9c7-adbad605b656","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":85,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"18c490bf-289b-40a7-ba19-7d57654e6186","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":85,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"c988e5f3-3f14-44df-95cd-5e3d77ac5ab9","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":85,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"8b36a049-576a-41cc-9001-aa91479e2708","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":85,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"17b1e879-d50a-4d16-bfa1-ba8367d64faf","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":85,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"79e15b74-bb74-4999-995b-3e58eca64837","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":85,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"eacb4e5f-f729-4fd0-8db7-bde30bbff3c1","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":85,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"2d82a5c0-0bc7-4f8c-8e0a-f81bb823d54b","block_type":"box","text":"Venezuela.","page_number":85,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"c99b7900-e402-40ab-b688-bf7eed98edaf","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":85,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"82d44c92-7681-43fe-ae71-bb30568d45db","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":85,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"70d05040-6504-437d-8323-67813bb3f269","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":85,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"035efd2e-168e-43df-8a5a-bc628015eea7","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":85,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"729c8e85-5a28-46bf-bd33-eac219a8da56","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":85,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"4106ea84-d969-488c-becc-cb0fca0766b3","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":85,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"a8fd8c8c-397e-46dd-a6a1-25ae2dbdced4","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":85,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"f1e3c0db-451f-4754-a32c-7188cf51137d","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":85,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"fe9cbfb3-721b-4518-9f18-883ef074d377","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":85,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"bac2d2b0-18f2-4f6e-94bb-558086d01119","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":85,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"0cb5104a-96a2-49a1-8fdf-55d2ed9e8e7d","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":85,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"c32d38fd-06b6-4cd7-bd8e-03b8f178cb35","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":85,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"3aaab248-3c65-495d-97aa-ecf4b4f23a34","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":85,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"7ca286af-9837-41aa-accf-1efbdb7ff7ba","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":85,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"4548924b-dbc8-4bf8-a391-984bc65f996e","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":85,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"54659b12-e952-4a8a-974a-370524091f2f","block_type":"box","text":"II-40","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a266e91-61eb-4ecf-ae6f-2394ce2f5c4e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a3735bb-d7e0-4ea5-bca7-244668e40154","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":86,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"2815752e-dd51-4a93-9545-d073d2eff00a","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":86,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"35bc3586-a6bb-467e-9abe-ee1324c35a84","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":86,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"daef22d9-902c-4fb2-92ec-58961a97ad48","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":86,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"f414e5f6-3345-4fbc-8830-3056a9f8d9d2","block_type":"box","text":"China Investments Risk.","page_number":86,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"cc6fd795-1ccc-4aec-bbe3-fc8e35188a96","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":86,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"00867786-087b-4a3a-b97a-ad1fe91f7a95","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":86,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"a8482f23-a493-49e2-906b-019552428088","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":86,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"9f7e48d6-e1a0-4983-853a-de99fbd7f5d1","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":86,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"20863927-ed43-4f56-81e2-b3cb45d43fdb","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":86,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"fb5d7d82-39c8-4c9c-8ddd-2071ab61b65a","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":86,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"b1a59a9d-1482-4d22-8071-8327d7a23a52","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":86,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"b9f43d16-094d-44f1-83b7-6b4c6f17941a","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":86,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"45d89a0e-3c61-4928-9f33-b754950d4274","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":86,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"d7b8a2de-fdfe-40ca-9387-45845cb3d6d9","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":86,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"15f653d4-1856-4599-86a7-254c8d758438","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":86,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"6df12645-e59c-4737-bc45-83684b7d4853","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":86,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"12b61058-58a1-40f8-80a1-81daf72d864b","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":86,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"4fdbc31d-f0e8-4889-ae28-ba96a46d6415","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":86,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"571fc05f-38d9-4913-993e-eede768cc97f","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":86,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"90613396-9f0c-454a-b1cf-f54397e37eb4","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":86,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"376cde27-2373-493f-87b5-c44f81fde80c","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":86,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"fd8bf4cb-1a8a-4ce8-8be1-48992507da44","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":86,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"60212b46-0feb-453d-a8a0-8426b2d2b0c6","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":86,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"0112e4af-7f30-4475-8ed8-c4c4ced77295","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":86,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"a3f54d70-2eb5-4ab7-84c0-f56fd0468d90","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":86,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"db392652-9ffb-4fbd-bfe9-cf759a3d299f","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":86,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"a962513c-b02d-4bf4-8ab3-7d3397a30578","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":86,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"a3aaaa8f-d52b-463b-a2f9-9297c7561fc5","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":86,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"c57fdcb2-214d-46ca-bc0b-fc2b204f5c9e","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":86,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"dcd81c22-80a6-4d79-95e8-c3ae0229dad9","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":86,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"79217c81-edd0-490d-a04b-396df6f4517a","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":86,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"e4e99da4-d59c-4a1b-a9bd-0fc171f0604d","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":86,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"252e9d93-b479-4c79-a078-b8ac0fa43d36","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":86,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"3757326f-3531-46db-a081-522107dc1642","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":86,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"06a3b9db-9d79-438a-8d8c-1d3fd76d274b","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":86,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"fe4a445a-7982-4914-9a4b-88d50d9f35f0","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":86,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"41ae3a1e-31b4-4b46-9a33-84af7778347d","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":86,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"89aafd52-42b2-4670-b153-1180f3a83a8b","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":86,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"88a87226-aba2-459b-8ee2-1507f611dd08","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":86,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"c9034eb2-4b84-4bf1-9371-2beb5acb3544","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":86,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"2703225f-22ed-409a-9049-ad55d53b343f","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":86,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"498c4112-9b82-41ea-bbc7-0112d06314b9","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":86,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"8d8b1793-c5dd-4773-9d8e-7da642b33cf0","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":86,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"b2ae19cd-7c25-4236-bdcb-6d52f3feec69","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":86,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"873e5153-efaa-4862-a396-8243ad5f2988","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":86,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"c0ba688e-118a-4434-91a6-6c6a09aa82aa","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":86,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"7c9bd5da-2c2e-46b4-86be-c56d3034cf0f","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":86,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"15af3c1f-c6d3-47d0-80fc-b419bc1fbeb3","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":86,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"8ab0c83f-5bc5-4f08-9899-8bae18846255","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":86,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"05fcea64-daac-4959-8f55-a1b0adc84bfb","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":86,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"00da47d5-9fbb-4ffd-8df3-a19a34f8c3c0","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":86,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"249e8858-79a4-4c5e-a9b5-e790d505b3e4","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":86,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"b0bdeca3-7c6f-49ed-aac6-539f5d64a258","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":86,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"9e249648-7b0c-4d1d-9fc7-d28aa5609c5f","block_type":"box","text":"sub-custodian.","page_number":86,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"97b9d83b-5ec6-4b2d-b401-cbefc2799006","block_type":"box","text":"II-41","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c4d6d6b-a439-44a0-9eb9-6fe727ab1d6f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"15083d39-3ab3-4e88-9479-13418a867616","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":87,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"0f47a3ca-17f4-4424-9435-bf0654f1b96a","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":87,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"08a55871-316c-454a-b02c-148a0f2859d5","block_type":"box","text":"on investor protection considerations.","page_number":87,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"aa5874c6-4ceb-4e0a-97ac-5d0c6fe95922","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":87,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"ae763a76-b805-45ef-8713-5d26155c42e8","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":87,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"7e432d21-d411-4fe2-856c-1d0ea70b299f","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":87,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"a6e0a9f3-79db-4c7c-957b-faa2d36ed1b7","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":87,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"e8d16ed6-10e9-4bb2-9ff2-2ad11a95cc44","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":87,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"6200cc2c-950c-416b-907e-6917d57fe719","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":87,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"07e152af-92dd-4bc2-837c-b87f7169a7d3","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":87,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"10f136b2-cb89-496c-bff7-b0b799f2eafe","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":87,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"0adda4fc-7a5e-456f-b653-9c24d016bee6","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":87,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"d59ded60-955f-4f10-ae9e-187e04f33910","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":87,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"5acb0452-9bd2-4bda-9558-666f6c39fcef","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":87,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"9a2e0f28-19af-4e9b-96ba-1a30a836f707","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":87,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"20a7a789-058d-4178-8d5c-e3a7dc4fe54c","block_type":"box","text":"accounting firm.","page_number":87,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"30983b85-a62f-4a84-8b98-e834917dc76f","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":87,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"127a6849-027c-4a8f-a440-5f6a0b077efb","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":87,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"75e70c4c-0a8a-4b90-b90d-68d136666674","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":87,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"8c5dfdda-cc08-4826-9a6c-1c9c94d6d420","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":87,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"28d57d7a-7c0f-4aaa-a75d-dd79b30f75a7","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":87,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"027d4251-de20-46c1-840b-4c1d92cc4cbb","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":87,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"adc867d5-42be-443a-9575-2c537d15c8b9","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":87,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"bc75ee3e-b385-4e1b-840f-097c50949b23","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":87,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"28ebc75b-baf2-40ae-ab13-7b8d80a08f01","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":87,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"f2a9a1f4-814e-4571-adfd-6014d3849e1b","block_type":"box","text":"RMB (“CNH”).","page_number":87,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"d4e3946e-74af-4e35-9681-2484e1f30707","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":87,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"3d4005ef-0678-488b-b5a1-7e4688ab44b2","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":87,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"e43f12e4-1467-42a6-966a-5b7151498cb7","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":87,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"eeba93cf-83d9-431d-8a3e-981124671e0b","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":87,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"d1f01340-216d-4504-916f-ebe53f8459cf","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":87,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"8657779b-019b-4047-810a-02a2a8537c8f","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":87,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"971a523d-92d6-43c0-ac85-899f62f71510","block_type":"box","text":"represent equity ownership in the operating company.","page_number":87,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"f9ee46c3-6685-4ca1-af62-f8a20d5b27bb","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":87,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"1f881b61-a711-491c-afb5-cb9873f1be47","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":87,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"e6491fcb-890f-4aa2-a65e-69a267adf063","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":87,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"d70efc63-b8cb-4cb9-b0cf-f4fa4f2b4178","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":87,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"a287fd39-832f-45ea-95f4-a371bc1957c2","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":87,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"a2f3d11e-f067-4f98-bc63-cca19c3fea8d","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":87,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"cb9c30fa-d9c9-41a6-b637-f0dfa2e0e417","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":87,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"537ef971-d224-495c-8764-17b851daa15f","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":87,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"c5b6e7c4-e8fc-4a35-8ad6-0f2ef55dfb3a","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":87,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"a1f222f4-733f-4474-bf01-fd44c7858fa1","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":87,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"88ad7953-8f0f-4335-8501-45206d33f5bf","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":87,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"a1577000-cbc6-4548-b210-058cef079aff","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":87,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"5f8c47e1-5897-4373-bd6f-441f013e9818","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":87,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"1f14f155-7a18-40d0-8212-8f08f6305f0f","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":87,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"474bdf8d-0b92-4beb-a0c7-9786c96ba0b0","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":87,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"ad8458f6-efec-4b96-b5f0-02c716a6e9f9","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":87,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"936baec5-92b3-4f36-b66c-804e85c7769b","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":87,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"b9077973-eb5f-4779-8a98-cea4852208ef","block_type":"box","text":"losses to a Fund.","page_number":87,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"9db8acd2-54e8-4aff-b1e8-4e888f26d7ea","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":87,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"1a5e4252-e77f-4993-8023-450560849e4c","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":87,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"cffc9249-c32e-4dbd-bc9e-1d8524d03c51","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":87,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"402768b2-5f63-435f-abb1-38e9a43d3b2d","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":87,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"2b1d527a-a458-4223-a718-dd0af6ced666","block_type":"box","text":"II-42","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4745b22d-575d-4cc4-b920-0da9493de0e4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97b505a3-e625-4619-8869-78eb754568e9","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":88,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"034eea76-fa5f-41b3-99a4-5ee4fc1bade5","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":88,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"bfa74ca8-e0bc-4fd5-a4b6-878a62160dc7","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":88,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"4a15fc40-369e-4fc7-b84c-27866df25f58","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":88,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"65fd38fc-709f-4cef-9d0d-13cd6687099f","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":88,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"497caa26-1e56-40a4-b877-3d9301c47f6b","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":88,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"aba63e29-1c5e-40ad-a093-1b2e2cdc23e3","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":88,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"98d5b038-52ab-471f-9377-6abc955d728b","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":88,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"f992bd09-9406-4da8-9cc6-f298a3abd98b","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":88,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"9280d44e-10fa-449f-9a00-7c2a1c67f59e","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":88,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"2af45a7c-d549-46ee-8427-803d25e1a748","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":88,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"ea78f875-5c79-40b5-af40-a1d031014fe5","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":88,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"a6f4a1db-3945-41aa-beb3-447fd0e7d9e5","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":88,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"258eba3c-e74b-4aa1-97a0-97bdf7e510e4","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":88,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"9e095ccf-68c2-4090-92ef-94d8778356f5","block_type":"box","text":"such companies.","page_number":88,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"06bf8f7f-20cf-4761-b4ab-d27e4e5882f1","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":88,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"29f63af3-cab3-492c-aec3-ed9e547dd552","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":88,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"94c852d9-b504-4dd1-9e48-cdfa5c78ac28","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":88,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"91469b41-84f2-48fb-8604-88542659766d","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":88,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"def1232e-b714-4f73-b993-7db2bbe7ee3a","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":88,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"c85c731f-1512-48bb-8b61-05b3b816cf76","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":88,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"2fbef8f8-6027-4be4-bee2-e0e440542c86","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":88,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"259c0b0f-0166-494f-8992-4063014ab67b","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":88,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"d3483f7a-ec41-447c-9f93-fe0a6f83fb51","block_type":"box","text":"standards.","page_number":88,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"90ebf927-a628-4d8b-8eca-b5eae3b41013","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":88,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"f1d1ffd3-f492-4690-aa01-dfed754853b7","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":88,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"8e2f4151-b726-473d-b4d4-0ab632992e61","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":88,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"fc03af02-e635-423a-bd6b-5721a307dd31","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":88,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"0b9d3117-d6cd-4ecb-a56f-390c069be9b3","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":88,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"3feb3acb-7004-45b3-8046-cd1682f3d640","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":88,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"d8ce5d87-a3eb-49ca-adb8-fd9da6c43544","block_type":"box","text":"General","page_number":88,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"46072487-9426-48d3-be0b-6f4e52180b77","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":88,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"707f30f3-f1ad-4af4-985f-ee7814521306","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":88,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"29d7c3dd-a01f-413e-bbb6-9579cc08b38d","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":88,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"bc633811-b7f8-441e-a8fa-898a3067bf93","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":88,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"880f5640-7738-478c-8ca0-b35f5b58eee6","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":88,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"aa24ff5d-34b3-4456-9771-95fdef4d7afb","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":88,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"7311a117-d3ce-421c-a8a8-e04c37a019d0","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":88,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"56177213-cec8-43c3-9668-b258c3e82541","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":88,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"6e724dc5-4006-4025-aed6-d42f7cc0e290","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":88,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"e7e8e2d9-c3eb-4b2b-bf11-20804951966a","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":88,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"27c1c7c0-2945-41d6-a0c1-c28a197c1f72","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":88,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"1ca7f9e2-4722-4ca6-9928-89196b30690b","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":88,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"2ba46c25-de02-4f35-b92c-8563848f7aa9","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":88,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"dc7eebba-80d2-48a4-b615-d545f03e10d7","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":88,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"94838177-3ff8-4627-b41e-825be03c2cfc","block_type":"box","text":"company established by SEHK.","page_number":88,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"dbb55805-288f-42f0-b7f9-9168e8900136","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":88,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"4396aa42-fed7-4d50-ab3a-8e507ce7c3ad","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":88,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"47419592-cf29-4e16-9484-3d59e2d25cd4","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":88,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"22df892a-2969-4ca5-ae97-c018a5a7fd60","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":88,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"1eb53d7c-489e-4a39-a95c-e6ff46457bbe","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":88,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"93d8d921-a4d8-47fb-85f4-ef54f5d44b29","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":88,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"2a8991e2-a161-4a7e-ac12-26d855d38d56","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":88,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"6272709a-f917-49c1-acca-a1971b138d4f","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":88,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"0fd5f44a-af2e-44a3-b33c-510245c3c3d4","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":88,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"b15b4714-83a7-45fb-b1e2-88614f30ed9f","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":88,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"acd87562-5685-4405-b317-8d3974d6782a","block_type":"box","text":"II-43","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8096486f-4118-4549-9ceb-cace89811fa1","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"819cb5be-640c-405f-9f9d-a818d90a74d8","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":89,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"53742b68-01ac-467c-b58d-2975c50ab413","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":89,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"f6579f2f-52f4-45fc-911b-09ef587107a4","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":89,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"6564679a-308e-476c-b398-24171320e8bb","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":89,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"9d25dc15-1746-4499-bec7-12a0c974d22f","block_type":"box","text":"i.e.","page_number":89,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"83083c86-0222-4b4d-990c-53b193e6817e","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":89,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"6660e304-6172-4a95-8ad0-ff7527824b1e","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":89,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"b24e9a6d-588b-4a20-a496-f18607424e98","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":89,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"e68d8a1c-dab4-413c-8329-05d4e37e7d0e","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":89,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"930070cd-13b7-4717-8246-2f7d5a225882","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":89,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"cff9c645-e5f2-42c7-9584-b099e03968dc","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":89,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"19570ead-3074-4413-a7d0-16811f734f29","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":89,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"00b288fb-690c-465c-bd7f-2eced28f73a6","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":89,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"e13a08e1-58b9-415f-bd81-08a637031f17","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":89,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"e900f1d5-7a4c-47e0-a1b8-27b2d664bc7f","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":89,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"e4c45343-497b-49de-8ca8-36ebea08f326","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":89,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"8356d9ba-1c57-4100-a8f7-f8feb86d1ecf","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":89,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"e4153948-fbb1-479a-bc54-25db18fc053a","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":89,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"e04e6ca7-b0f7-4e11-9e02-b17e28661920","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":89,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"94eef6f0-5ab4-44e8-9a9f-eb2de0174311","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":89,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"dd2fbafe-dbe2-4002-b787-ec43db274ab3","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":89,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"f452e4bd-f27b-400f-a826-03edb04ee330","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":89,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"fc7fffbb-ceda-4c15-971c-383e02c65dfe","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":89,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"fa08b17a-6bad-4372-a8da-cb8974c0c44c","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":89,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"046a19bf-3e01-44e3-b17e-4d30d0527491","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":89,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"78ca1ca5-eace-4558-bb1a-28766615651f","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":89,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"0ac7a22f-498b-42ef-a5dc-07c062277fa6","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":89,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"7b7708f9-9c78-4eb2-a3e2-2da52075fa7d","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":89,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"fd55ce2c-ea46-4fb4-ab74-5f1f2a389d56","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":89,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"ce5399a2-2d46-462c-9c2a-af6bdeb1dc60","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":89,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"f4cc7fef-f502-4976-92d9-62d12ff86ece","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":89,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"5fe948f2-cdb8-4940-bde3-391a1fc7b2e3","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":89,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"c18da273-548e-4c8b-84ee-325f006415e4","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":89,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"88952adc-a9c5-481e-b017-c62749468893","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":89,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"bf803850-eb16-48ac-a53b-b122e3e70a6a","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":89,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"93467929-e0b1-4687-8422-af3b54011650","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":89,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"6e7a79c5-d15a-4638-8b3b-75deec103834","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":89,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"55428a61-f728-426e-a88f-6f8bd4b9c776","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":89,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"b1dfef4b-6557-4927-ba7f-272572bc2cd4","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":89,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e4309d76-a3dd-4326-8055-f9563629a2a0","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":89,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"7e8b3846-9fa0-4629-ae42-7c5cb8431d5b","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":89,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"31660240-af4d-4ecc-a4d7-9ec75bcd6975","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":89,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"e3911f78-fde1-40f0-8aa3-d0ae4d9998fa","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":89,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"baaa9795-fa58-4a74-a17a-052eb52ab43f","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":89,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"cf1114af-a389-4981-aaf9-602a3c849d4c","block_type":"box","text":"PRC.","page_number":89,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"b2b22288-000b-4089-9f81-928202a57878","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":89,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"d89d10de-3ee4-472d-8a77-4d4e2943e599","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":89,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"ee99436b-b59e-46f0-96da-1da88ff59816","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":89,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"1cef9480-ec59-46fb-8340-657f36eeb663","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":89,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"e34ce7ce-f1fa-444a-af96-caf9591c704e","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":89,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"f022a41b-cb3f-4e9e-aede-27fd9d9855c2","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":89,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"383f7d83-9a3a-4788-b42b-369611098050","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":89,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"7a8b0a94-8a56-4669-ab75-7aca00dc56ee","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":89,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"ce0452a1-eedf-4c54-b2d2-2b1095f6aaa1","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":89,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"d97daece-9cd0-4f0f-8c4a-9454e689c61d","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":89,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"052be8b6-3fbc-4fb2-b654-9fa94e03cfa8","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":89,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"38bb8ca5-758e-4674-838d-1f318d95d6ab","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":89,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"3b8660cf-1a06-485f-9069-4d7d2ff6f946","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":89,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"c4c5fc7f-429d-4ac1-b3e6-97ce79debdf9","block_type":"box","text":"II-44","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"81f5390d-1d63-48a0-8f84-f3c0043c94f3","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1ccfd2da-d6a8-4d4b-b9df-7ce83bd0ccd1","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":90,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"dddccf17-8929-46a8-87ca-b9f667e415a2","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":90,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"98df934a-6845-4b5d-874b-896d25c4c363","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":90,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"dc58c789-d2a3-423a-825d-402701854a67","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":90,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"4fd0c946-235f-4512-9f7a-c2c70f3c28e4","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":90,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"28516ed3-0707-4ec6-a54a-0f281a96892f","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":90,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"104f5f0f-13b4-40c3-8196-823ec47ced06","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":90,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"1a8a42b1-e0d6-4378-902a-3ad1ab13e6f2","block_type":"box","text":"Suspension Risk.","page_number":90,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"55619d8b-d5b1-4125-b712-b48b8c643b3b","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":90,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"c442b555-e753-4bd6-83ea-562417af5c8a","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":90,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"3a5bcc1a-60f7-4e4e-8a14-90b5d39910ae","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":90,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"855a7f72-7933-454b-b9c4-a7f35b80208f","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":90,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"f9608284-7524-4c63-bb79-b6b8060118cf","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":90,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"7acc434c-8378-4c99-8895-9514ef61054b","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":90,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"8b453a57-cac1-44ab-a601-86dc139ea4a4","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":90,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"b1725fcd-b524-4e2d-a23f-ab55393e4e5c","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":90,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"acd1e7cc-82c6-4926-8add-0ada3d9d2c6b","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":90,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"855bc58b-145f-498e-8ce0-b43ee8c4be95","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":90,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"cc86ab3c-da66-4010-a66f-d062e42cab41","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":90,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"062dd1dd-b52d-42c1-8fd9-506006c3b6f2","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":90,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"6f19422a-a055-4f75-bf4c-6aa006d698ce","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":90,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"0db0f744-a079-4d6a-839a-3a9c747cab3f","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":90,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"8f99bb76-1b54-43e4-b373-1e9e5d78c7c5","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":90,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"c6d170af-e346-4c9a-950c-51ffe0464c64","block_type":"box","text":"A Fund may invest directly in the","page_number":90,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"6829f8c1-1a19-45f5-b342-8b37f51d82ee","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":90,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"f6bdd5af-fecf-48a9-ba71-2523779058b6","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":90,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"ee7e8015-f49b-4c61-b7ca-be3dc5445c22","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":90,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"069b3af4-2aca-4eff-a9e0-885547434a10","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":90,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"8ead4ca9-c424-4e38-b1f6-99be542d0e83","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":90,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"1a018d05-393a-4da2-b892-b39d62af022e","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":90,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"d476b29f-4f78-492d-9e0c-dcbc286f0248","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":90,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"46f8ae85-f597-40c2-8f3b-8fbce29d1ef6","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":90,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"72684805-6a25-47e7-82d9-ad0faab433c7","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":90,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"40053d32-9a40-4910-991a-5e7068f5068e","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":90,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"d5c124a7-4eec-466b-8f2c-95d4b3730b27","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":90,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"e22042fa-137a-4d9e-8fc0-4032f9d57274","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":90,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"cebede9d-5af8-4a66-ac4d-fb1db04dca3f","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":90,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"ece680fe-8e76-4530-98e5-51ebdc835284","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":90,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"00e4a170-0a4c-4d55-b38f-875834d69c70","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":90,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"18934bf6-6c6f-4e4c-b615-9c216ba41676","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":90,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"998dbec9-b2c0-4543-8822-70568ab7c51e","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":90,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"932f7daf-1c27-4ace-b2fb-2e2e113c37af","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":90,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"fd2080bd-da95-4dbe-be28-0d81e1dd664f","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":90,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"b61860b9-af41-4cde-8e75-cb4296cebfba","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":90,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"d7e61653-def0-46d6-a7ba-f543a71d53ad","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":90,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"2a2d9873-1668-47a0-8599-f2adbf190a87","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":90,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"849ac8ef-f0e2-4afe-bc0a-ab58c68969e5","block_type":"box","text":"i.e.","page_number":90,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"3fbf3112-7c61-4eb6-8e61-fbbd808fb410","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":90,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"ad1728e3-a7ae-4783-8561-bcdd9a952c33","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":90,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"b1c99f66-93fe-4c7a-bf39-d5b277e8e3ee","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":90,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a51f1c36-fbf9-4dd2-8c90-74bf068d9e51","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":90,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"cd58ef46-1646-43c1-aa0a-295d53d1f35d","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":90,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"83da1508-2881-434a-a376-62b8b7ec4934","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":90,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"f4a8833b-48fb-45f2-8c64-dafe8170d91f","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":90,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"0c2bde82-ad36-4643-a8cc-35b582d58066","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":90,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"791d094c-40b7-48a8-819b-31391dfc96de","block_type":"box","text":"parties.","page_number":90,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"7d8f8165-94a0-4674-bb50-3e8eba1137eb","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":90,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"6e7ab04b-4298-402b-968c-a0655a6e5336","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":90,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"72980a0e-dbf8-44f5-b54c-4b42df70865f","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":90,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"4fa57253-65b7-46e9-a1cd-0f7893c2411d","block_type":"box","text":"II-45","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"03a4ddf2-2186-4e0a-9d8d-5612b03df7d0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ecb6ca2a-0985-4443-85d3-04b3bc7e857e","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":91,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"1b0fccc2-b869-412c-ab8e-878e84910d35","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":91,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"ce5c2771-61f1-491f-92b7-7caed17c2486","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":91,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"ab87c84b-4f38-40ed-9270-02947c624c65","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":91,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"5a6c42c9-d0e8-428d-b1a8-d4a727916357","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":91,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"518baf07-b9ec-4d0e-aca5-b9241de191a5","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":91,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"fd094f71-b504-4b7d-b43e-307b2661094d","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":91,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"eb9568c8-49b7-43c0-9688-3b573f2f0239","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":91,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"b35a8c59-c15a-4c89-a109-7629e1458438","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":91,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"368f1c25-b096-4492-ae84-d94620313968","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":91,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"5e04c80e-d3d5-4842-913c-3fafbdedec39","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":91,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"7980236f-96ff-4b37-960c-c2b5ac89bd9b","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":91,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"d25d4726-1355-4a72-a7b5-3b7a03f4e5a1","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":91,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"84adbd40-c20d-48ea-a3ac-d2bb551a9e55","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":91,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"a2146783-7cab-4279-9c56-9b4933c3ac7b","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":91,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"de193f2c-8a63-4eef-af9c-e87678e35ac6","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":91,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"ac0f6d4a-1518-479b-ae6f-fc7143da789f","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":91,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"9dffe5f4-8c1d-484f-ac42-112a17d89033","block_type":"box","text":"performance.","page_number":91,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"4aa4faa5-fb5f-4e31-93a9-dcf5b9c6a18a","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":91,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"f3e63c6b-033f-4775-ba68-4eef05c2931e","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":91,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"30f2d48d-bec3-4a79-8161-fa24f77ff4b1","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":91,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"148e5be2-1c30-45e1-a37f-f1ee39379ad9","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":91,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"8e99bb82-ebc9-4f57-a890-36e7ea6af690","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":91,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"62abb78f-e480-4089-95ca-e89885edfb34","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":91,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"43739d0e-f51a-45d0-b64e-4d2a92fec041","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":91,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"823cb100-8f9a-46e4-9db4-fd0f29fb2050","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":91,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"949bbf21-ccdc-4ef8-a5de-dcb156c4533a","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":91,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"ae609e9a-4587-431b-b0b7-2e72334a2870","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":91,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"7c8a01e1-b337-4094-82da-816df59b29af","block_type":"box","text":".","page_number":91,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"f18d6d41-74c1-44bf-8b7a-80751c33a0fb","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":91,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"cba3b4c2-c234-4def-882c-e24b3079363c","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":91,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"c08da5a5-22a1-47c8-a1c8-b49c0c7329e4","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":91,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"b3df83cc-0561-40e2-a568-24e36118037a","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":91,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"f856a3fb-0d2f-499c-b663-b2ea31675602","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":91,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"c3572b5f-41c5-4dcd-a215-12cc5bde31d2","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":91,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"e8b02f78-3174-42e5-b407-5aded8097795","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":91,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"e53249a4-dd0a-454d-8869-6814e2535e34","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":91,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"4b108196-39b9-4cd0-9566-2a7d2f510c86","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":91,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"55bcf743-d217-4d1c-8a9d-2f94fd443ca8","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":91,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"e5d9d920-3ec6-4553-bf8a-4346175ed4f1","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":91,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"25c1d05b-79d3-4946-b5cb-4c0a0d111a51","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":91,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"149c9b58-6128-473d-aa9a-4d1fb3975848","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":91,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e49e30b2-e35f-4ba6-ac66-df05ecea6354","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":91,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"9fedf872-dc59-4a4a-83e5-90000fc28473","block_type":"box","text":"without notice.","page_number":91,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"29eabaa3-1ab0-43bb-8c36-35e326c635e2","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":91,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"89e4aa57-6604-4065-baa2-722c794732cf","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":91,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"90e87662-3ee1-4bcf-8d5f-660a3ef9e784","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":91,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"7c8d2fa9-7961-41b0-9b7d-deacb75d15d2","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":91,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"2c876442-45f9-4e79-882b-76c72e7ce679","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":91,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"29c57668-6c5e-472e-be80-7d73b43205a5","block_type":"box","text":"December 31, 2027.","page_number":91,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"f43e7c5e-f7a6-4de1-bc31-be55a2fe74e7","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":91,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"f6d10c89-2627-4111-9f16-5c8b644c2d01","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":91,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"92fd926b-40b0-427b-844f-b27c8d0bf352","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":91,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"240fb737-2571-46d9-8356-e1626c38e524","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":91,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"64f08682-01b2-4b6b-972d-dd173220edc4","block_type":"box","text":"II-46","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f0f3df0-53a3-4c28-a0b1-cbe0b480df82","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"304f1d86-f61c-4a14-a183-ae8a3c17fc6c","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":92,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"77a9421e-a50c-4b3a-b1c9-95f9a471c8be","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":92,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"07c5034a-1139-4700-ac3e-cf3bf82f703c","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":92,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"2b3e7023-f8a2-4bd2-a124-262d643ede33","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":92,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"4612e034-1519-4490-abd0-5869ec833e71","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":92,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"f11a7f1e-1ac3-4be0-b32f-b74d6fa65dda","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":92,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"0b3594c8-4842-4d65-af17-af602ae2b4b7","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":92,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"9d3cb26c-ce46-4824-89db-95dcd202e404","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":92,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"e802cf98-2307-4769-94a8-7ea5e5793acd","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":92,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"935a7a4a-56be-4c17-a882-2e6592acfaf3","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":92,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"81209040-e322-4ceb-a918-922dbf1423ad","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":92,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"44d7aa3a-473a-4402-a233-d717a8491b47","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":92,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"64e5182e-e2a5-4475-be19-47a2a86cad18","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":92,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"96a426d1-fc92-43ec-8ca7-ac5da77f53c6","block_type":"box","text":"PCR sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":92,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"faa7d7b9-83e0-4dd5-afb9-27f164f7c05e","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":92,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"f25e27aa-d366-4c0b-a3a7-2cf64fe90ce9","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":92,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"45fb6c11-3c6a-4f08-af35-140b8069cf0d","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":92,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"ad6e67f6-c50c-464c-8019-c2c2b29681e0","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":92,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"066c4189-827b-4f3d-82aa-9a4a27352b57","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":92,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"96f9f0b4-0eff-4a06-b5bb-af95321ada3d","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":92,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"4b92f0a3-cfbc-4fba-a610-11ad1aedf37f","block_type":"box","text":"the PRC in notifications.","page_number":92,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"31fa2126-04b3-4dc8-a5c5-4fee783f31eb","block_type":"box","text":"Investment in Other Investment Companies.","page_number":92,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"97e1f8da-9e3a-4f64-b94a-e4117f101835","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":92,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"a278cdbc-650b-4b90-901b-2c86990723e1","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":92,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"1e9a0ef8-4cc6-445a-87a1-f8afc716ae21","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":92,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"b6085c21-8e06-44fa-a21d-2a759ef1c995","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":92,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"4e8fd281-4e5e-4908-9fd3-1128ba8f57e6","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":92,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"739a8e8b-a9f0-438e-b173-f07b2ee2c44e","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":92,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"62d10590-6b08-4153-a39e-94f9ca166033","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":92,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"a51e9db5-2b38-4472-afa7-bd49b0f24938","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":92,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"8ff359f3-30cf-4f5b-9cc6-2425f47433e3","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":92,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"22150cca-53e4-49cc-8d86-d6b8356a182a","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":92,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"c9e1dbdf-aa8b-4650-8fe5-26ab23e1009b","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":92,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"741b56d9-1ccf-4d33-a43a-77b01ff67a44","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":92,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"f21ee9ec-29ba-4875-9c85-8d7d019b97e3","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":92,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"9400c01f-9aaa-4e7e-af5d-8a5f06033cd4","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":92,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"2c10dd6c-4e0f-4e7c-97ec-2ab73e193a4e","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":92,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"e21bcb73-6dbf-4ee3-b1de-070cb8c4fb77","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":92,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"baebbd5f-e9ff-4a1b-aa67-0db5ff2cca0a","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":92,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"170263bd-fde0-4b13-993f-ad9658e4b7a3","block_type":"box","text":"subject to certain conditions.","page_number":92,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"0b06871a-6689-46d9-802e-4c97749f581a","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":92,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"74eddb8a-4101-46fb-9d98-42c76bdc8ee2","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":92,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"3237f2bd-7d1c-40a2-880a-ff92068cc520","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":92,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"8f363f09-a5b7-47c9-a680-b492b4d6c9b7","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":92,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"fc7911cc-8e3d-4f16-bae8-8ac411d6b769","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":92,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"953dfb93-aac5-4d7c-aac3-addd25cefabc","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":92,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"b19b4ead-cc63-4c11-8792-fb690f563322","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":92,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"e7e26315-03f2-4149-87d6-df5820136186","block_type":"box","text":"loss.","page_number":92,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"28cd17bb-2a08-49d2-b4a3-f8898d5fc85f","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":92,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"bee67f47-b545-4ea9-8508-7d15fda166a8","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":92,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"3b90f235-4469-47d2-85f5-39766c02349e","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":92,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"1bec85cd-f3db-482c-bc15-0ef4c2179ced","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":92,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"273c20d9-77f8-4358-a304-7e348f38f150","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":92,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"f800af69-3683-4a68-a7b3-3db6682dba6c","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":92,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"55056ad5-3cfc-4cea-b061-136816539b01","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":92,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"edf3916e-065c-4bbe-b638-871014d32736","block_type":"box","text":"II-47","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c7cb1627-3ff5-43c2-94d1-b35403912fd0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33b17196-2952-4f82-ad37-da8b6f0ecc24","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":93,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"8b9eb40d-2ab6-402c-b706-0f03aaf32d50","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":93,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"970407c4-5e5d-451e-8163-f4632ccc4b92","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":93,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"9ebaa04e-5ccc-49cd-be85-5a8542871134","block_type":"box","text":"assets.","page_number":93,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"3715634f-2b88-4322-9efd-964b82f01ca0","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":93,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"61d39c65-ad20-4aa9-b08b-9c734a42144e","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":93,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"87befdf1-f122-4900-98ca-5f1f9f25540b","block_type":"box","text":"e.g.","page_number":93,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"2792dd2c-6533-4909-878b-fe0fdf3c8173","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":93,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"762179cc-2bf3-4073-9d3a-42988ec74a66","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":93,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"842180b6-9de5-40aa-a5b3-134f8aaa543d","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":93,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"5a000e9e-d366-4435-a5a5-6e019e8abaa1","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":93,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"7e536338-1804-4cb4-9036-631fa7c947c3","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":93,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"43468a3d-ddb8-42b7-8826-63081df08365","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":93,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"0e424e84-1075-44ef-9f53-532fbae0738a","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":93,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"49a10ba1-0c08-4291-86c8-182093b994c9","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":93,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"9f632bd1-792a-4aa9-aca0-425396f150ec","block_type":"box","text":"countries.","page_number":93,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"027104ad-2096-484c-979e-324e6524ae0e","block_type":"box","text":"Issuer Insolvency Risk.","page_number":93,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"03635bdf-6b6d-496c-a521-2773f02e84dc","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":93,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"bb1dfc1b-adba-4248-b8ab-b0738b5bdf51","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":93,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"ce9c9e2d-f178-4791-b714-e83192322e4f","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":93,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"c9cc1076-66ce-41fc-85f5-2beff786e4b7","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":93,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"64e068ce-8bcd-4bca-9e3a-989c79379a1d","block_type":"box","text":"issuer uncertain.","page_number":93,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"019f1a49-cb5c-4ceb-a955-1fd6a5e7cba8","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":93,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"89372078-6add-4e70-ace9-dbd41be1f66b","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":93,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"a54394b4-ad95-4ccf-861e-43471a1eef3d","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":93,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"4c03ca5f-dfe0-4ea9-9bd9-95aad80f7399","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":93,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"f7f5434a-45a2-4d3a-af6c-8d81481724be","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":93,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"240e3bf5-d7c4-4082-bfe2-2322de2fd4aa","block_type":"box","text":"eventually be satisfied.","page_number":93,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"4fda7be4-b923-4889-8e78-576d4fbe4471","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":93,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"b034e663-3555-4239-8cb1-69e78e2dad5f","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":93,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"66f7f55d-d993-4791-8315-051aebf5d175","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":93,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"3cdfded5-f09b-43ce-b983-80b40144e9fa","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":93,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"0e3030e8-2e38-4067-8da2-0d9606d7460b","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":93,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"75597e47-57c8-4dd2-98fe-89a0174cf98a","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":93,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"e7426e8b-312e-4497-89d6-3b385df977a6","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":93,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"046b0a8c-670e-4e8f-838d-e867598efca1","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":93,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"44d93bd1-2b4c-45ab-870e-cb4783edb8a0","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":93,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"2fb49b3c-e718-40e6-8dfe-6560ed68ab89","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":93,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"126a8e58-d4c9-445e-b319-a0f23c71420e","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":93,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"133d30f4-e8a5-4c38-ba92-4ad66d967c42","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":93,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"cd5f18d6-dcf5-4304-b0e5-3e5c9154fcfd","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":93,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"7a3ee3f5-8d10-4a52-95cb-14840844a0cb","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":93,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"9c2b3eae-3eab-40a0-a498-008eda7754fb","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":93,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"9bc5cbd9-1473-4517-b651-6bc34749ce95","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":93,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"cce01828-12df-42d7-84ed-d6fadbad8b37","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":93,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"46e5ba42-e564-44e4-8b27-a9df8cbbfb3c","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":93,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"a3ca8d71-4d14-4655-a325-96f9234c15b0","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":93,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"3fe1c7a5-96d6-4b21-a46b-9a36a3f69179","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":93,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"eac16134-24df-45b5-ad50-c450e6658915","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":93,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"13db4aa2-021e-4b7b-927b-085eb27df7c6","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":93,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"8e73f02f-a574-434c-87f7-7b6ba724c63c","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":93,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"437085dc-b085-4fef-a806-925943031e1b","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":93,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"27bc7167-ebcd-42db-8317-a88f4f767a87","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":93,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"dc88ed99-3630-4e04-8032-90f22baa72f7","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":93,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"d621c4cf-ff43-46d5-8b67-d1a5a1c3ef2f","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":93,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"cbdfa393-488c-44bb-95b6-0c13b116ec24","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":93,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"394d599f-2792-4f2c-a7f1-6d370dd8ac45","block_type":"box","text":"that assumed generally by an investor.","page_number":93,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"f02c0c12-ac28-418a-aa55-a3646ebeecec","block_type":"box","text":"II-48","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1cba038a-ac88-461a-b97e-842b013c86d0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd8dc643-04fe-43b2-99f0-22e95beb5c1f","block_type":"box","text":"Lease Obligations.","page_number":94,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"94b8d7a6-f895-4e62-972f-b5fda611ff46","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":94,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"5f7db97e-b5ff-43ba-b5f6-35db6e994411","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":94,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"6ce6a937-af03-460f-a061-1b22b18bc9af","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":94,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"4a264d60-2b3b-4bf5-81f2-4d3f55d63e12","block_type":"box","text":"Life Settlement Investments.","page_number":94,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"643871ff-e5ad-4eca-add5-79504b0c0e00","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":94,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"41d313ec-17aa-4c4e-9e59-1c29b9e279e0","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":94,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"28551ea3-48a0-4d08-817e-776028f76d1d","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":94,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"95f54c30-03ba-4a02-9d2b-3513600ac482","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":94,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"502bbcc3-0b6f-49ff-b188-d780236b9a3b","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":94,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"7e63a500-7295-4047-be59-3e8e6099fedb","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":94,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"7e671a97-d929-4a89-abe5-d34602511762","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":94,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"d1bb9c40-ff27-4e3a-9afa-028f80bcd990","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":94,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"0dcf3f48-8d9d-4c9c-8437-bb9810339d2c","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":94,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"d027730b-1c85-4f6b-bcc4-d95404034bb3","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":94,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"46de8fae-b30d-4ebf-b4ef-ee39e6e5634a","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":94,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"e2787b66-dc1b-4c34-ba47-8147e8f20243","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":94,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"7087d3a0-e51d-4569-9276-a987236f3d9b","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":94,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"0e02bc41-3886-4a15-8cbd-0e4e23d0a58f","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":94,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"e1266798-20d2-4f9b-b0e9-0f335b36ba7a","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":94,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"bde6cc36-9093-417e-a1cd-603010864b8d","block_type":"box","text":"Liquidity Risk Management.","page_number":94,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"922ce1f7-ceba-4cf5-a674-fe373e82a340","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":94,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"18b0cba8-7961-436c-9f2f-cdf60ad0d433","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":94,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"d12c8c45-187d-40c5-89e4-d313b1190a32","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":94,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"e85bccbc-7053-4e67-b5f7-93d9d72647db","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":94,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"3160fabd-0173-422d-b8db-5f8e253b527f","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":94,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"c3996c4d-92ad-4220-8fa3-1520a136233c","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":94,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"54937c52-95d5-4522-96d5-bfae0dfa3eb0","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":94,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"2b05e04a-3fe4-44d1-a7c4-8bc6266822ad","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":94,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"2b1d0e80-d001-4524-85e5-4e23071f1290","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":94,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"d69c048a-d5e9-4082-bd16-8a5d8a8b99d2","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":94,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"f7dc4e33-b1ba-4fc8-8bb5-e69601569727","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":94,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"fe75180f-4ba4-490b-97ea-1dae9f7a3ef9","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":94,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"3de43a51-f8ab-4403-9516-9a2e2d7d2687","block_type":"box","text":"Master Limited Partnerships.","page_number":94,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"62c04d69-7c01-4fed-8fc9-2aae567ab36c","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":94,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"e4ae1c10-babf-4e0f-8737-9457457db999","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":94,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"b4e27051-e01a-49d7-8dcb-a20fb54cf0ba","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":94,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"1371d006-66f8-4f06-b9fd-bff55a53306e","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":94,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"8769a23a-d03d-4d68-8078-664af4e24d41","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":94,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"829883ae-14c0-4cb0-9268-0148447572b6","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":94,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"9cfc88ae-1631-4475-9d8e-14d44f219560","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":94,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"cfbc16ad-612d-42b0-becc-90ee67624b61","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":94,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"6e1533f1-fd2d-4fe1-a928-f5a52b709a57","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":94,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"3bf31172-6a79-4234-8dfc-46c8a5a616dd","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":94,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"bc834626-09b0-4cd2-9a30-8b923a81d5b7","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":94,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"fc37db4d-5ceb-492c-b7e2-9c2e91b2e082","block_type":"box","text":"in the partnership’s operations and management.","page_number":94,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"4feb35b1-7712-474d-99e4-11f5d57e4f73","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":94,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"254513c9-e549-4696-8201-6bc184380672","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":94,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"a913c3e0-c1fb-4895-9dd2-c4e0a41e514b","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":94,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"51d13952-2487-40ad-86ec-de21d9ac227e","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":94,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"e581a16a-52b9-4b72-a860-aac605a2d167","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":94,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"79c1c1db-62f0-4054-af5f-c4cb15967680","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":94,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"27ea28be-2127-47d7-8f01-0b0c5bd89c84","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":94,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"8126107e-6a0a-4e67-8dfe-1538fa56e3a0","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":94,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"03b3e974-6f18-4472-9852-40b993811caf","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":94,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"3ca4fa4a-05e1-4eae-9887-c1be1b757bc2","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":94,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"f0d68955-4ba4-4f5c-aacf-6fac93345b38","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":94,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"b6f7a217-74b9-42f3-96a3-1c8d730d0955","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":94,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"d5617396-db6b-4fc5-bc5e-28f7d5e18e2c","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":94,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"f276edb5-edee-4dd0-b7aa-b40eafac9b16","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":94,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"2d8c26af-6148-4167-bf5e-1129b453ac95","block_type":"box","text":"II-49","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f79a5e08-a0c0-46d8-b247-933739b62718","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbf7699a-842b-4ceb-b100-d6ba3116ed23","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":95,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"d396b082-f23f-4e0e-ad1f-3e968da3e537","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":95,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"e95e9d3d-6d33-4921-a435-80698a463622","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":95,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"4ddf2b5d-e39c-4900-ac0c-ceea806b3355","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":95,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"b749acda-d894-476a-b41c-9344fb0cf527","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":95,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"fe40450b-1cbd-498a-8d6d-dd9e779de17b","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":95,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"2e58cbf9-828a-454b-8fe8-b271c0991e0a","block_type":"box","text":"Merger Transaction Risk.","page_number":95,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"d88d2b78-bffe-406c-9cd6-d79b14c32c22","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":95,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"6ad9bb40-bec8-4b7c-a37f-c102a7a2a318","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":95,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"c3e0a045-2871-422d-ab6a-4d7610aff6f8","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":95,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"d8da5428-5abe-4dd2-a6c4-1d59d49a7009","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":95,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"8e0c870a-5aa7-4d59-acd0-1be475da34a5","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":95,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"32a12a5f-afc7-4d07-b428-14cf93eed9ec","block_type":"box","text":"the Fund and may lose significant value.","page_number":95,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"d75a058b-0a09-41bd-b530-43df7d08181b","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":95,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"7f99e1c3-b029-4f4e-a3dd-0cd700c4924f","block_type":"box","text":"Certain","page_number":95,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"5beeb93e-f9d2-4d7c-a295-844dba224a03","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":95,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"6770fe24-55ff-4c91-a8a2-c1d0c6f5f38c","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":95,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"7b2b39aa-01b0-411e-967f-e24efb4e3278","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":95,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"fd1a4133-8b09-4234-ba0e-6fd851995883","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":95,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"00a85687-b7d0-4b57-b7f6-4c1648aa9ac6","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":95,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"1412503d-640c-4d6c-939b-3f411c0110a5","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":95,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"b07a7f95-1f83-4656-b472-4835f3653725","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":95,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"a587fdf3-1c4a-4f06-8de4-5daa3d247989","block_type":"box","text":"branches of domestic banks.","page_number":95,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"78b6bc4a-aec0-4273-af38-a4260bcf0bdd","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":95,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"da62314f-03f8-41f9-85e9-61dc18f9c78d","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":95,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"59401b68-cc53-4091-a138-31a5882f043d","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":95,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"6058fe58-1ddc-4e9d-a54c-81f697387a92","block_type":"box","text":"paper of a foreign issuer.","page_number":95,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"c666bcd6-59f8-482b-87ab-e39267dc1676","block_type":"box","text":"Money Market Securities.","page_number":95,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"fdf21258-bc6c-421d-ac4c-ea20cd741e2b","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":95,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"b32a5ca2-3633-4dd5-b02e-a650e53e11b6","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":95,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"b1d3a7f0-0ed6-447a-8812-ba050627711b","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":95,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"3c24fb4c-54c1-4cd6-a71b-b32eaf17eceb","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":95,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"704eab52-f3a5-44f6-bfe8-3d4d53cded41","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":95,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"6c344509-2a8b-490d-93e2-fd2a82a7233b","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":95,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"80486d38-5f19-4af8-947d-97aab317dd9a","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":95,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"2b2041a7-c9f5-43c5-82a4-d0c72a65ea68","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":95,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"808c0c6c-2217-47c3-bbc6-f96dae44ceeb","block_type":"box","text":"agencies;","page_number":95,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"55c82481-b249-4ddc-9866-eb3768b76f5c","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":95,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"9aacd7db-c383-4adb-a061-88f2c44a6688","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":95,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"f176785c-72a6-41b5-a5ca-124c17447b38","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":95,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"25992856-7620-4ddc-ba81-cd64996e8cb4","block_type":"box","text":"obligations and credit card receivables);","page_number":95,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"53c63ca1-62a4-4977-879a-8fc80ae9037c","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":95,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"8378a88f-c8b3-4a4b-a1b7-e5dfc9b22c5c","block_type":"box","text":"authorities and related custodial receipts;","page_number":95,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"bb05da67-9356-48cd-a2c2-d2b76b31aa97","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":95,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"fde65994-49af-43c2-a1a7-20ad3117cb03","block_type":"box","text":"agencies or authorities;","page_number":95,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"912a5d01-6a87-42f8-92dd-efdaae6376c4","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":95,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"e8b4a03c-fd55-4a02-95c4-2c816ef9debc","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":95,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"a3bcf9e3-7d69-4f56-ac5f-440e4108d9fa","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":95,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"a2318a99-4e69-4450-84e2-36af255f153b","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":95,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"29a5ef7f-bcd5-4f02-b9f4-ba5999a75777","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":95,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"cab04c9a-ff02-4738-90a0-9700be4042a4","block_type":"box","text":"States;","page_number":95,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"328c3af1-659b-4280-aa6e-502f4dd61897","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":95,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"16d0460d-fd0b-4c63-b1c5-56a8b14ca506","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":95,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"924156b7-e28d-42a9-9f2b-229fcb321c8e","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":95,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"4a5f4bc3-aa0a-4f8b-8b28-479912767504","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":95,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"f617a9e3-4117-43ca-981e-282fd84d7fe7","block_type":"box","text":"II-50","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2b66befc-5aa4-4add-ae25-1a504ddfd7cd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"957b18ae-5c1f-463c-af4d-c71920407c7b","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":96,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"4c60ef77-15b4-436f-890d-26dce3002c4b","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":96,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"cc8d9988-761b-4868-9189-1a5b20fcc442","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":96,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"1bfcafe2-6a6f-419f-b26c-cc01594f3b44","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":96,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"cf8e3b6e-dc61-469c-a85d-0619a4b13d45","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":96,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"39ea5a12-0aad-40e2-a000-66580e2ccf9c","block_type":"box","text":"States.","page_number":96,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"6ddc581a-b329-4d08-9590-a22ab7ea66c3","block_type":"box","text":"Mortgage-Related Securities.","page_number":96,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"4451bbab-1de5-49f2-86a5-62f14eeee03d","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":96,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"608a7235-2cda-4da0-8fb0-e035c8359fd9","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":96,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"d7257432-5a58-4146-82a0-d459f3330bcc","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":96,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"893b4b60-9d8b-4b8b-a2c3-80941a04f901","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":96,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"8df2c9ed-21e8-4e73-a318-98059172710e","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":96,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"c1b71a83-2047-4cdc-a4ef-66bd560c644b","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":96,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"8aa67cc1-d0c6-42c6-ae5b-738e9dfce847","block_type":"box","text":"maturity or specified call dates.","page_number":96,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"bae4cea1-917b-4d80-88de-3ca8908c9533","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":96,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"fc730034-a409-4230-a87a-fc8533f18b98","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":96,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"6ba36f0e-7d95-4d90-97bd-b08d584a63db","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":96,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"d3e7ca49-0b54-4e1b-a0e1-dcb255d1c00f","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":96,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"5ddc93f3-6142-4918-9574-43848644272e","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":96,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"dd8ad27d-5b81-4a93-a641-822a78411f96","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":96,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"30ec84b5-2c28-4b00-8d64-abf90a1eaa89","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":96,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"0911b87a-9d3b-4a60-b756-e0165c52da94","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":96,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"f8f56106-5b44-44ff-8da2-fc14886b420d","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":96,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"5f6f1893-8a8f-466c-ad29-f609d1c2b4b6","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":96,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"7598579a-f413-407d-a7d4-2fe0feb9b77e","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":96,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"e7ecd821-97b4-4d53-b0d7-94830f3d9228","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":96,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"7f7795fe-eb0a-444d-afb0-385ca7ed6a5d","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":96,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"1896e529-ce38-4488-8e39-52680ce4aa3f","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":96,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"dc4631e6-46d1-402c-a9cc-0d5367ae8557","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":96,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"ba91e0a8-acfa-4ddf-84ee-0c4cc72faa28","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":96,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"4c87decc-7158-401a-8c88-84da257c6d54","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":96,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"e7df7968-679e-4efe-9082-78e986ad1891","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":96,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"28749bb8-3f5b-452a-b61b-38bab2edadf5","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":96,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"41e15550-1b7e-4172-8e91-cf27391be9e9","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":96,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"c918e5c5-df08-4180-be79-e1b82b63b76a","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":96,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"0d9616f2-503f-4fb3-b8eb-6b286736b5d0","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":96,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"3b3815c2-1617-46f8-a61b-5b199d20a1e9","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":96,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"7719d088-c2a2-4012-8a3b-1711e33539d1","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":96,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"6dcd155c-85f7-4510-a8bf-bdf7fc2fa0d2","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":96,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"0df5bf53-3be5-4ce1-bcf6-d198c0e58116","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":96,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"0dcf3ab9-9bd3-43eb-bad7-445129226a41","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":96,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"ccf95e10-35f9-4f72-8e8e-4b113e958055","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":96,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"50fa1ecf-1804-48ac-9149-e29217cc11ec","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":96,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"42a7d44c-a622-47a4-ba6a-9dbf0de7ca3a","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":96,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"7db48def-8c91-4a99-9629-08bdba202438","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":96,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"711e11bd-a3ce-45ed-9bea-f1f9ffd3ae08","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":96,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"649319bd-c321-4643-b97b-8b79f4ce4eea","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":96,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"af710816-01cb-412d-94cc-6b734addc20a","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":96,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"815ff699-9e5a-439a-8bb4-2888437416e5","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":96,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"accefebe-2434-434e-a67b-8d511e3b89d2","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":96,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"eecfd489-b679-4465-a54e-08ce72f7678e","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":96,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"3edd65a9-44a0-4258-9b53-370b14cb28bb","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":96,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"f3e75a11-0af7-4417-bf8c-2b640763626a","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":96,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"e1d9a4e6-045b-4405-8c02-ae7a6d24779a","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":96,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"246142da-0a7d-491a-917a-46a4d080762a","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":96,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"2ca200b7-bd4b-42d0-99ee-4d3ce575e998","block_type":"box","text":"II-51","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"33d37c07-e048-4ef4-970e-5eceb9915c5e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6628b65d-0b98-4e51-95df-4f327a929e82","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":97,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"4cccd166-70eb-425a-9878-fbb42da420a5","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":97,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"c7ded72d-c2c2-436e-a813-f84fab25c907","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":97,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"29c2c29c-98ab-47f4-8026-bf5f40a8485c","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":97,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"5338ad47-b7ec-47e0-b840-915c1cfc8e54","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":97,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"98757d1d-9249-40e7-9b74-583f82c6b85c","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":97,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"648ccb75-fdd1-41ab-917b-ab97bbf0af6f","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":97,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"d3a50595-94e3-4023-ab1e-06889d93770e","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":97,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"30f5073b-3536-4369-95da-0643d1090f3e","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":97,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"25347920-d3b9-4750-b8a4-152c12fb5ba0","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":97,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"2da4cca6-d6d2-4c8b-83c8-07e160e83e53","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":97,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"b8c74278-b6af-4254-ab20-b44df5813186","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":97,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"640beb20-b86a-4857-8458-14a10a341acf","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":97,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"bd121a33-ed6b-47f2-b07b-078eb997707b","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":97,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"417ba181-3348-424e-9637-5c23af390cc9","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":97,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"f8d786ee-631b-4509-bf19-cc5691065da6","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":97,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"3c59a10d-5657-497b-bdf3-7522c49b53cb","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":97,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"2eba4bdb-d24c-489f-964f-eab753b28a5c","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":97,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"476de922-30aa-43c3-ae5c-2e2fddadb15f","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":97,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"377f95f8-e423-4c3a-94e2-c7cf4175e727","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":97,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"fd4cccb4-f9ea-4d99-ad72-46676486b210","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":97,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"77fb1faa-9453-436e-89f4-d2053962b3dd","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":97,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"52cceac1-58bf-4f95-b0be-f2b9904c0b15","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":97,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"22ddefb8-5d18-4336-b485-c65bc6071559","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":97,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"e52dfffc-c12d-494f-a7d8-c5c5b860d37e","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":97,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"0c4ea94f-f33e-4604-a3de-12d53014e8df","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":97,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"df0f6dac-4780-44b8-a320-502d2b642cf8","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":97,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"3ca47499-c8aa-4fd1-8ad6-3ad10a2b0fc4","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":97,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"524e06bd-0bdf-4b57-a1c3-2fce12427ca1","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":97,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"2ff75c99-53fd-4aa0-a82a-c2bf76f52416","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":97,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"afed0a44-4ca7-42de-bd85-02e12aaddff7","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":97,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"86af0ba1-26dd-4683-982a-664a5591b24c","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":97,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"554d6f71-967a-4bf0-87fa-3ad40ffb50d0","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":97,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"0598401d-7a3a-483e-835f-e4d62ed65a27","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":97,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"893770a8-4d92-4677-9eb8-541fbd306f5f","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":97,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"63eef118-ce10-45a5-af39-57f6a6af50ea","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":97,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"12f33525-dbad-4f16-8cba-71918283d9ef","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":97,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"4ddb7d73-38a8-454a-b55f-6c7d118b0265","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":97,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"f940bb1b-ef58-4bf5-8da8-cc34208c4b96","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":97,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"9700a2d8-73b4-4f5d-b263-9f69c2b88527","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":97,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"2dcc27c1-b91b-44ae-a4f8-b66c5c6957e1","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":97,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"c68dd14e-d917-4cff-8f49-bbc805f8583b","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":97,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"a1ad7fed-443a-4cd8-b301-bc557b17c2bc","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":97,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"179bf4fa-6cd2-4e67-9f5f-0146f6588c51","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":97,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"4c10253e-6ca9-4900-9733-003d509ee69f","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":97,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"f819603c-2137-48d7-8d89-6cd1bd2daa81","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":97,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"539eadbf-da42-47f2-a204-0e52027553b6","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":97,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"ae5fbf17-d5b3-44a8-8d6f-bac374b02a68","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":97,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"9e5d33bc-35d9-43ff-83cc-2f5a8236c39c","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":97,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"6efdb16c-a313-49ad-9aa7-2069ed648345","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":97,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"b23c07c2-d26c-40cd-8480-332e476a7032","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":97,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"cca6d2fb-2593-438c-a407-81666e21a027","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":97,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"52883b26-d7f6-4dfe-854e-3196f6341151","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":97,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"265d98ca-e7cd-469b-b8f1-b7523eb7377e","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":97,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"178073cf-1094-463b-a74f-caf9084edf52","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":97,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"1de75430-076d-4d41-89e0-4ad68a7366fe","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":97,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"9eb57f41-53c0-47c0-bfe6-9710e49f2322","block_type":"box","text":"II-52","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d7a3e0c2-8060-4281-b60c-c209e9fab624","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e681073-912d-429a-851e-1a2c8c254ffc","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":98,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"70a2d93f-2260-4b2a-9722-d27e1e853304","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":98,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"d7a4bec5-63cf-4032-b1c0-6b6e4358d572","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":98,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"4657eca5-8ce9-4692-a170-a53a28e6fd28","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":98,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"b6d87904-d234-4df9-be68-32266ce5abdf","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":98,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"43a1f958-4927-4510-8567-a4831d796970","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":98,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"06a15b4d-67d1-412b-8124-669bf75e0344","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":98,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"7cd3c37c-ea17-4a50-aa87-76853df3a9f9","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":98,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"334ded58-37b4-4ff0-8846-5f15b24ceca5","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":98,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"f9fccf56-0006-4c07-8c81-84319b98bce7","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":98,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"5726e6d8-bbb5-4282-9ac0-5cc012bc7ac0","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":98,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"58f4ca8e-6c17-4703-b5c5-ac070d14d875","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":98,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"c326b7ca-433f-4ab1-a7de-5a02a86d34f6","block_type":"box","text":"of principal because of the sequential payments.","page_number":98,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"8e5300e0-321c-4118-a45e-ccc662c4c847","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":98,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"066c768d-b2ba-4ee3-a535-d4c085e9535f","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":98,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"4cf5c7ec-0070-4409-930b-08c4bf1579a1","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":98,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"09736f64-9432-43e4-898a-4c71914f3cee","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":98,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"bdd3ae75-9f2e-4290-be0f-0a67d5c3510f","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":98,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"193e2fb3-c6b3-4073-aa26-cd7145bfa9ce","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":98,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"6f277855-971c-443d-8967-790f363d0c3c","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":98,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"31040092-5ac4-4ae6-8544-d52746d27b5d","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":98,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"0f76270d-ecb5-4657-a06b-9ae73cc2523d","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":98,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"7aeda087-3c29-49ff-8ecd-7e947adc4dd8","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":98,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"bde08591-4d80-4b97-9349-fa551013ed06","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":98,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"a9d68bcf-d8c6-46ff-8145-74a33a24c79c","block_type":"box","text":"securities of any single such entity.","page_number":98,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"1c949b8a-119d-4a64-8eca-fe62b87ad03d","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":98,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"d099523e-a7c9-4959-b5bb-950d9683c5aa","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":98,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"204ffecc-9759-4dc8-89a9-bdc1f9a23ac6","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":98,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"4bcfb6fb-8686-4268-beec-3b55949eb01c","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":98,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"a3a50bdf-38d0-4cee-9dcc-11df14deb6e0","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":98,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"e7fb7dd0-dec7-4255-a847-45684b36601e","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":98,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"41cd49e6-8a62-4981-86f0-e3ff12591400","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":98,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"8bda9acd-a1a4-411d-9207-fe2ede386f2a","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":98,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"14318083-8d53-4db0-9ac2-93c9f7fd57c3","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":98,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"a58ab1ba-2490-48ff-b713-2b8c317380fe","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":98,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"86a750bc-f297-4bf7-b715-8fa2abf611da","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":98,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"58753d55-52f2-4169-b19e-d2397e656125","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":98,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"1318d1e1-fd42-453b-82e4-b6b0c8d0a73b","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":98,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"7ec33f23-a21a-48cb-aa81-833a522de6ac","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":98,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"e9e6644a-ef55-470e-992a-d0f0cb02842b","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":98,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"08d369ee-2367-4f2f-bfd8-3696220cef3f","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":98,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"55ff5860-16ff-4493-86e3-8e5c58c8e842","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":98,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"3f03d305-426f-4710-9ce3-78718657d644","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":98,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"98698c8c-0858-4855-8593-5e2f5f32366f","block_type":"box","text":"classes.","page_number":98,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"53617df1-e2bf-4984-accd-7927dafe0c0a","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":98,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"546bc254-ec4c-4006-aa2a-52e8e4a4bcf4","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":98,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"7362f8be-1e23-4a19-bfcb-cea40456e3a3","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":98,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"2191589b-7f9a-4b16-9cd6-ae520fa31402","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":98,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"1f46878c-1494-467f-a61b-c146238b9646","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":98,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"a018061e-c1bd-4dd4-801d-5f6c84e081cb","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":98,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"dc2c6b19-616d-472f-883e-6a58a9b8f7d9","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":98,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"f8460a8c-7ef1-4290-b0f8-85f2bc2c3e5c","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":98,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"d94392fc-c15b-492d-b29d-86e39b8786b7","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":98,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"ac0e9592-9e70-4936-b9b9-b6a18a5a3f3e","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":98,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"59cb7ead-3775-4bb3-b083-0b543b33221a","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":98,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"312f9475-dc15-4b1a-bd0c-47ef06243ef2","block_type":"box","text":"to a designated benchmark index.","page_number":98,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"f63c6ca0-481c-4b03-80ce-b5349d0df506","block_type":"box","text":"II-53","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0b62e0c9-1adf-4fa1-9240-ddfd7af3561e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76408934-6f3c-426a-bcb7-47f5b54f598b","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":99,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"606877d3-c3d2-4bbf-b010-20e4c2650e7a","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":99,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"9fed45b1-a209-40d3-acca-7f29e65b8725","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":99,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"2372088b-671c-4f69-ac1e-11e4d702afb2","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":99,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"2080c8cc-8afc-4949-9530-f733b98cee03","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":99,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"f8979f03-d1a7-4fa3-a8b1-de111da551dc","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":99,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"1b533c29-ea0a-4745-8182-4e06c8abfce9","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":99,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"40806968-b3c9-44f6-b818-f2d2927e06fb","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":99,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"c1a930ed-3ef8-46ad-b27c-e3ed50f618ad","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":99,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"5811167e-5dad-4469-ac3e-5964f6f45fc7","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":99,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"3f63c279-38dc-455f-98b2-c332d277d2dd","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":99,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"1f857fbb-94a4-4cb1-b86d-c54bea30f9ab","block_type":"box","text":"CMO Residuals.","page_number":99,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"6de577cf-fc1f-460c-80b2-8ccf7461eb40","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":99,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"3290f781-61e5-4f03-a7a9-63c94cb751bc","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":99,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"a24926b4-865e-4cd2-97af-913fa98ea6ab","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":99,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"08cdc069-2486-47d0-aa36-7b713116a5f1","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":99,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"40ed549c-7a19-4f07-873d-e1025bf9c072","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":99,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"c57e8e5d-73bb-4ac6-8862-2c72fc1432d5","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":99,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"d13d5bd0-adf5-46f7-9ad0-633f30fb8234","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":99,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"ccfd185c-99cb-46a1-afb9-b51f956c1d71","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":99,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"17d01413-8908-45be-bd19-e1c55a860185","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":99,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"74544c76-6f0e-44fc-b144-ba0c621810cd","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":99,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"752ab802-5b73-496d-82c1-c0baaf7a62aa","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":99,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"bf830040-b665-4511-abd1-9c2f8385a572","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":99,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"6876f772-1df1-47a7-b470-11bd51053f49","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":99,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"ecf9b8f2-9bf1-41f0-ae8c-3715ed042fb9","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":99,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"e14d260b-05b3-4d5d-8b0e-68f114b88c48","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":99,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"b3b1153e-b82b-46cb-b823-85ea61d65465","block_type":"box","text":"a CMO residual.","page_number":99,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"74b8f207-6760-4968-9e9e-b96ea2931a88","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":99,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"f7329784-d649-4eb0-a379-a9ea613089b3","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":99,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"e225a121-0b29-4711-9750-ec01598bce55","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":99,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"48cde9a0-f31c-4a78-bca5-49384184d56e","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":99,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"6f9fbd30-82d7-40dc-8b9e-043dfbfed398","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":99,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"b988d9c1-583d-4fe8-a824-c3a6b505bcc8","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":99,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"56accf60-0543-4597-9f17-13f67657d934","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":99,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"a50e25d5-524b-46b9-913b-800ec86c835e","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":99,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"1a59325b-6b25-4bad-bd72-d3535ed46364","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":99,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"02c95633-44b0-4f30-9dcc-a48e3b6b290a","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":99,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"fcbabf5b-00ac-48a8-be69-443f32e667a4","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":99,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"d574d639-4e1e-43ed-866d-439604dc0251","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":99,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"55fa4b35-ee2c-4052-932f-8e6f149a7982","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":99,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"97b968cf-611d-4dac-95a3-af6c015e33a6","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":99,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"327fe205-5080-478a-8471-a800fe23f7b9","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":99,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"79c7e4a1-2271-41c5-b314-d1200c7c2f8d","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":99,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"2366231d-b8fa-4629-93a7-09117338f5b7","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":99,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"e3d351d1-3483-47b1-9082-19d360dbaa40","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":99,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"7dbf271e-5066-4f16-9096-91a37dc9d88d","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":99,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"6bbd5639-82f9-4099-8160-4084588ad457","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":99,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"84d17719-14e8-4273-b076-44c5bafb44b7","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":99,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"0897f749-b7ad-4732-9f4c-ce96b0d0a0af","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":99,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"42e8dc76-1e19-45f8-ad66-b420a3265fc6","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":99,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"662cb8a9-86a7-49a0-b6bf-8284f6a785ba","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":99,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"e48249d8-d84f-4698-a025-08ba43c68cef","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":99,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"a708b425-e2ab-4f54-990c-3d6e47bb7c39","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":99,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"38540e72-f9b6-44b3-8bb6-5ab833fe0fdf","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":99,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"7f66d969-16c1-4e65-b879-e84cd84e813d","block_type":"box","text":"Tiered Index Bonds.","page_number":99,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"a56ba94a-4e61-42f2-8fc9-e127f8837075","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":99,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"ac25f617-4682-479c-950c-bf44420d2860","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":99,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"3765fa9d-e78b-4a28-a701-232109145264","block_type":"box","text":"II-54","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"111a78b3-57a7-4181-84a4-08c0747fc05e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40fa521e-eada-454b-a512-f8ddce654eec","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":100,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"f3fc42ba-256c-4de0-93fd-bfbceac94770","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":100,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"349725a3-12e1-4cdf-9a67-00d874c3fb15","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":100,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"c818ffff-6aeb-4e80-afaa-7ed91ba9043a","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":100,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"f70cf136-3a99-4af0-8b70-365e7375435a","block_type":"box","text":"that of a fixed-rate bond.","page_number":100,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"58bbbd39-7bc6-497e-b877-87ee6d08ff87","block_type":"box","text":"TBA Commitments.","page_number":100,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"53ca55e3-da57-4764-bfab-d91091d04f92","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":100,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"c96b5681-02e7-4e40-8204-1ef1177b42be","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":100,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"50e1b852-7e4d-47ac-a3f3-8f4b88fe1cba","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":100,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"bf0a0e1a-8d5a-46c9-ad95-dcd22eda4d3d","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":100,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"51ca543a-2f97-41eb-ba63-746b55207c17","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":100,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"4e0d6934-51a3-4895-8f31-1c6a62928519","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":100,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"79878a2e-0a3c-4b59-b92d-853af73d9769","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":100,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"04029fd4-fc5d-45c1-99a7-7dc9bfface24","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":100,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"a2ff7b8d-c094-451e-8e59-00db6ab08a75","block_type":"box","text":"below.","page_number":100,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"aab1ecfe-8f0d-4f03-9e10-d493bce92bb1","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":100,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"135d82f9-6bd4-4131-a072-2f93e346b3cc","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":100,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"525d1726-5b58-4531-9a6f-08219accfbc4","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":100,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"7601530c-ed77-4e4c-ac55-b6b11df32091","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":100,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"b2de0792-61f3-43a9-8d9c-2907917b27dc","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":100,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"9e14e6a8-253a-4808-9742-3f460f96a990","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":100,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"a031e04a-839d-45c9-a624-b58adaa96211","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":100,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"5064687a-2011-4339-b27f-6823bc9c4bee","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":100,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"df2f521b-7ea7-495a-b414-216a451e1063","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":100,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"9e30b112-ed8c-470e-b73f-52ccc5e6fcb9","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":100,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"c4fd3e6a-8ee9-4d39-a0ec-b90015e30aee","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":100,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"48530a1a-0926-4d3b-a359-0ac922f94b6b","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":100,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"b74eba34-397e-404d-be16-0a8094c7d5a2","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":100,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"2688286a-ec79-48c7-93b4-fdea5e86c1d9","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":100,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"ebb0583f-0b6c-48dc-b8d1-1bb2a527f811","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":100,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"471f1880-2bdd-48c2-b76d-2e12a4a85d32","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":100,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"b069b2b3-227c-4dc8-9053-95eac246caa4","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":100,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"649c9910-880c-4957-8d34-ee9523af7ad9","block_type":"box","text":"securities in the forward transaction.","page_number":100,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"e97b3133-3308-4899-9292-a0423d488ad6","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":100,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"bb537c84-1d6f-4494-ab5d-de61e55dc259","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":100,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"78739137-efdc-4685-8eea-35526662d283","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":100,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"b0c7a475-c88b-4c0a-bbab-2ea2f5bce0b4","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":100,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"15964d26-29c3-4b59-9884-06a9e68d7a06","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":100,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"edabe3f2-9f83-40c9-a58b-ddd97d962d9c","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":100,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"d14085fe-8d97-4fb9-96f3-d1b8822d2a66","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":100,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"daa1c34e-ced9-479c-a3d0-ece2702493d0","block_type":"box","text":"securities (","page_number":100,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"c5316f2a-354a-4eb1-9103-51f960ada0de","block_type":"box","text":"e.g.","page_number":100,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"5740034e-7a2f-40cd-8a91-4638eb2cdf64","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":100,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"cc5e1585-ff52-4258-a6fe-56a8ed230cf1","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":100,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"06162073-7aac-43b0-9d86-f8c9cd6e1556","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":100,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"57082751-75ed-45c3-8f7a-7659519fce44","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":100,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"00046f89-78c9-4d1d-a0c9-0841b3d64727","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":100,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"2e8068a7-0206-48b7-8567-713880712628","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":100,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"9c08171d-765d-45e3-ad4e-5708fe2356ba","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":100,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"0501013c-7020-44b6-9597-84d5c1573d54","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":100,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"e3373dc1-abc8-45a5-bcbb-140fa5871ec5","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":100,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"77f3b320-6c12-4d74-9ce9-46d72b9a56a5","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":100,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"99930076-dbec-49be-a7e7-fc86a4e34474","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":100,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"1653ff74-d8c5-42d2-a204-a9e646f0a2b9","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":100,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"858cc6c1-c547-4c82-8e9a-6d31682f3bd7","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":100,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"64cb7166-4f8b-4222-a626-972957bf9a2e","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":100,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"d330f5e8-77e2-4f87-9cef-b46f9c93f7f9","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":100,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"a60f0109-36f9-4a43-a7b9-bd4db0768480","block_type":"box","text":"Municipal Investments.","page_number":100,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"b338b7fe-0495-4eef-a7e3-c34ad3ae88a8","block_type":"box","text":"II-55","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"91aa9486-281b-4983-b8ca-3cb9a9813ca8","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a0c8e9c-c72f-4dbe-b8ac-e94ae74e3e83","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":101,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"c7eaf6be-da99-4999-aa6b-ba5e7ecbe6af","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":101,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"99fef94c-b84e-4216-8eb4-84a63df6374d","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":101,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"9c89ea7a-96ad-4afe-aa8f-204e83a8723e","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":101,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"ccf8a974-ef21-456e-9f2b-d509edfb90ce","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":101,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"ac626c7d-5480-48d7-9067-b21bcd113a65","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":101,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"e8059f87-b046-4655-bbc0-070f97a512e0","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":101,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"40c3e27f-3b8e-4056-89d5-0e66f92c9c85","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":101,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"0c401fc2-cf2e-4424-88d5-288030c87b80","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":101,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"e94235c3-7b24-46ec-b6f8-7ffed978c5c4","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":101,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"897b6898-3eb1-4c42-8dbd-d6477a65f872","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":101,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"097bd0bd-12a9-4d7a-bb23-91548da3beeb","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":101,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"403a9468-aa57-42c9-a83f-d0872c784ec7","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":101,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"34eebaae-f3f3-490a-afd6-b8a835e660e5","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":101,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"a0847b07-5512-49d7-9dad-fa23f6f91907","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":101,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"bae3f90e-cba4-4e36-9288-7a47b2ef0790","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":101,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"06d439ec-7471-4c45-98ff-2a526ce1d2a8","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":101,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"668e7905-ef03-4837-9d51-6219a87c9f8f","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":101,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"f69dfc78-42cf-43bb-a125-5c661a9d4ca3","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":101,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"3d4143c1-98a7-4514-ae24-69d03f733e67","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":101,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"9758958c-1aca-46fe-bef2-07dc6e18f318","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":101,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"113d5801-0cba-4957-8348-2f0951a6728a","block_type":"box","text":"The risks and special considerations","page_number":101,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"dae86f6f-e39d-4b3f-98dd-194aa7ed9755","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":101,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"f6e13617-dd70-44f9-810a-fdc6f0d2d9a4","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":101,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"fa2571c6-9567-46e7-80f0-65bf221d35c9","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":101,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"4b48f836-7c70-41e0-a989-492b1175c760","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":101,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"5b149c54-4f0f-4c93-8943-a3dcf3747e4e","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":101,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"2f316994-b691-4c38-b495-5aa3b1f2b913","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":101,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3a22f54c-35f4-4741-ad50-6640b1a780fc","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":101,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"c312676b-be1f-4d5a-8836-f87998cbffb5","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":101,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"6f9b670c-5d40-4271-a29e-a5992b22ac5d","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":101,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"9df4cc7b-dd76-4b53-862a-21c39496d5b3","block_type":"box","text":"II-56","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f8fed863-0aac-41a0-9957-09cb7c8c9b40","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2bc1b3b7-ed92-43e1-ae4f-99d3e446231b","block_type":"box","text":"Description of Municipal Bonds.","page_number":102,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"c56f11cc-70bb-49ae-9838-36cc8df0e440","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":102,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"0bc5c379-6534-4e0c-8e53-b95906103d0e","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":102,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"60402fa0-4266-4bef-91af-89f445cc6e37","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":102,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"d196f345-6818-4c69-87d0-fea6b6bdf163","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":102,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"03ad17f1-3669-4b2c-9a4a-50790b049c0d","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":102,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"f3128b3b-ddcd-4859-bb1c-a2cac9e42fd9","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":102,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"7ad648de-8315-435a-b9bf-4cb2dc44ab52","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":102,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"d7b99168-879c-4321-9e13-ffb5c1c582d0","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":102,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"15661cba-27c5-442f-8b7f-8a17cb965fd1","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":102,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"167e1ced-d617-464a-ad2f-79b988d3a9e8","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":102,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"e33305ea-e99e-425d-aacc-2dab70f82048","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":102,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"dcbfdc33-20e7-4c61-977e-e00506531f78","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":102,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"b0f42b54-d8c0-4497-84da-bee8caca204c","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":102,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"0334305d-5ddf-4593-8ac7-20e5fd093408","block_type":"box","text":"General Obligation Bonds.","page_number":102,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"2c3f514b-aab3-4977-b1df-fa942794618b","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":102,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"5a2f7666-31e4-4ed2-b24c-81e78b19777e","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":102,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"81cae7fb-cc50-4aa1-b142-52666ba024dd","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":102,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"b3dff2e7-901f-4485-9389-5bfd13502007","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":102,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"b2c7668e-80c3-43c1-bd87-1a664eb08f65","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":102,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"07e30c20-5892-4b67-bdb6-f374c1bb0b56","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":102,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"77a71c74-91d2-4b11-acb7-e4564088d87c","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":102,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"190e90d9-f3a4-4326-b48a-00353700ed6f","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":102,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"958aacec-cd85-42ca-9fac-8d416eb26ebc","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":102,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"85365408-69ec-48e8-9d66-e5d5e2a9b791","block_type":"box","text":"Revenue Bonds.","page_number":102,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"fbcfe737-dd64-4fab-ac3e-3ba723200aee","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":102,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"d8ae0646-187b-4659-b916-1f67f264de56","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":102,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"fe7e6304-c300-4c97-ab00-ec0509157de4","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":102,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"18fd06d1-1eec-4f97-a392-31e69c41341c","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":102,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"4121b5a0-42c2-4e69-8be8-84ade2fcbf90","block_type":"box","text":"viability of such facility or such revenue source.","page_number":102,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"03f4d5d8-0bdc-427d-99ee-74f0289c05d9","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":102,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"4b23443e-f85d-4acf-8ec7-e0e9942b60a3","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":102,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"cbfc54e2-fe28-422f-b2b3-a9294ac4fc6c","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":102,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"c7e0d485-cf4f-44b9-a5f7-a0258798635d","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":102,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"e618b798-56ac-4de3-83c8-4bbe407d9cbf","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":102,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"10a90ba3-95f9-4f15-9e5c-a520804457ec","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":102,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"895f1ddf-ddc9-4701-a54e-8035e9e792a7","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":102,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"eb9956bb-edf5-4994-abfe-996d76340592","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":102,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"ec227ee3-4b17-44ae-b208-3c71c4d99549","block_type":"box","text":"PABs.","page_number":102,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"bab14bf7-cebd-4e14-b91a-219dd686c12b","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":102,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"d5574a0f-abd6-4306-8ffe-428658ec6e72","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":102,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"d6cf1488-5bdd-4835-9784-b5e2f2663096","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":102,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"f6b8e987-cdd3-47c7-b996-ddc13ca49640","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":102,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"d20c04a8-ca50-4761-aad7-47261e0ed1e8","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":102,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"9ebec13b-51f6-4de8-9288-15f3cdea4ec3","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":102,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"08d91e6a-5d0b-40fd-bebd-20ae72f14a43","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":102,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"de475eaa-c0b2-427d-89cc-7b8f1d67a858","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":102,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"2e54f2b3-d8b8-424f-9281-9131e1f414b2","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":102,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"69d1cc94-d9be-4cb1-beb2-ebe2e48c4533","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":102,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"584612f3-6251-481e-af0b-6a7a7cf86e36","block_type":"box","text":"the particular facility being financed.","page_number":102,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"2a444597-9ef2-42ae-9a0d-6718a8fb127e","block_type":"box","text":"Moral Obligation Bonds.","page_number":102,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"d51c5d59-25f5-44f4-abc6-4aa5bec8b394","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":102,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"a8856b1b-163b-4189-9bc4-1e3a187c0a09","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":102,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"921cb80e-5caa-4fc8-ac0c-7118a4445bbf","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":102,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"3974c19e-3860-4982-a3a0-6dd83acb4555","block_type":"box","text":"that issued the bonds.","page_number":102,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"f573ee64-d5ec-4c94-b1a8-d118299307f0","block_type":"box","text":"Municipal Notes.","page_number":102,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"3292b43f-e3f7-4c49-9928-912100e893db","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":102,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"99202877-b9ae-4584-9c7e-02a5ad38881b","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":102,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"10922c30-2bef-4ac8-887f-886d2b3b6b03","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":102,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"0254787a-4354-4c14-ab7c-6f8ef28d0f8e","block_type":"box","text":"II-57","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a83bfcc1-abd4-479a-a7a2-7e20dc1c210a","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"805fad7f-972c-4884-a361-674a21ec3388","block_type":"box","text":"Municipal Commercial Paper.","page_number":103,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"9b975a53-62f4-47d3-97c3-3a8d21ffdff4","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":103,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"a5ffbb9a-3386-45c9-aef8-71c1d285c509","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":103,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"f4efbb12-7f04-41db-bf69-ee9ac6e3e40c","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":103,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"deeb62ee-44d5-44ce-a791-3c81f8096e2f","block_type":"box","text":"Municipal Lease Obligations.","page_number":103,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"f9929b3a-284d-4753-9d9c-77e927adb369","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":103,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"f0bb49c8-6543-412c-8a92-b8a3e629ed4b","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":103,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"243a7074-8a37-41de-96cc-04a094cb44b7","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":103,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"eccb452c-de4e-4618-8f25-cd9aa3b4d68c","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":103,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"9ffe0871-2482-4002-b54a-d7d79452f587","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":103,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"007f1dfe-256b-4cb5-8040-8b176f4d686a","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":103,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"994fb94a-c604-4d85-b48e-e6dfeb8a25af","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":103,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"8d5cdb27-5bd6-4c62-a5e1-7db2647b95cc","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":103,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"912375da-2019-4888-8732-aa9b8d740621","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":103,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"e2f7a8f9-6e4b-4068-9ba7-248f4af9dd27","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":103,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"6122e13d-6d74-4005-b85a-af4472ca16c7","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":103,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"18d3b202-9e0b-4561-8341-67a34df913c5","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":103,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"af2b0a5f-e747-45df-9a88-2090b03a6f66","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":103,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"e22a5b40-915d-4f9a-a7af-0320dd9af7ba","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":103,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"acbec1d6-abf4-4327-8ee8-eda64f4ded0e","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":103,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"c039fae6-9ae8-40a2-83f5-3c1a0f5a4819","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":103,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"7d3ec4cb-7152-4c3c-b408-998889cd0d20","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":103,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"34c44c68-14c8-4e73-9459-9648ac091522","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":103,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"a858a1e9-fed7-417d-9c87-e659520b2dcb","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":103,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"8ec830be-4ed8-491a-9744-b4d588b88e27","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":103,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"2989bc24-b57a-4c63-ab64-e3f27582f349","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":103,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"8b8e3d8b-f1eb-49a8-b00a-873c0a018b7e","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":103,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"c4c03216-f5d0-4577-ab5b-56a87df3bc55","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":103,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"76512289-0830-4dcc-b68b-49248d1fdadf","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":103,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"ef04d756-d83a-44b8-bb8c-89e985e4699f","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":103,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"5220ec8a-b5ca-4a80-b17a-1f24a920e137","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":103,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"efac8e52-3977-4fc6-ba79-2f3e844b5b87","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":103,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"2c9819f6-4ba6-4a77-bbb1-9a7cd305d9c2","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":103,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"5bda6231-8f2b-4bfb-918a-ab95b1533582","block_type":"box","text":"Tender Option Bonds.","page_number":103,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"67e6456d-e50d-43aa-9e39-b3d1680a1a8f","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":103,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"059dd902-8e64-4ca2-bd5b-ff2c3351cc33","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":103,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"b943ede1-86b6-41ab-bd34-b73147308186","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":103,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"9ef24bfc-3347-4c44-98d3-e6c672c4facf","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":103,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"ae477b68-de8f-4997-b04f-a5fbc375402e","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":103,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"50450d07-2449-49e2-9985-12b96882ed5f","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":103,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"37da2ac3-3dec-4304-895f-34580e03d9d3","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":103,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"6effa60d-6e9f-4a5b-bb78-0205e3c378d0","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":103,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"e837d262-1cdf-4554-9b38-4e594220a3b8","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":103,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"480143ba-afbe-4137-983a-096d795cab93","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":103,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"412b829b-8c21-4a62-9acc-9d2e85344db6","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":103,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"807fc0f0-3681-4a90-808e-cc749138bd8c","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":103,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"de70821a-113e-4aec-a18d-0d7a6ff19bd2","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":103,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"288c99ee-bef5-462f-b701-71316ee8da48","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":103,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"c535c7af-f5d4-4fc5-a41c-d75a1fa2584f","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":103,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"8cdd332b-6b48-48ae-b883-e5c2993edc72","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":103,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"245208aa-2e13-421f-a48f-d7bdca406e46","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":103,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"fd7fff41-4378-41ca-ab1d-2d42cf919483","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":103,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"c7c5f42f-48ce-4281-a1e6-ad406256286a","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":103,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"402ad371-689c-401c-bcb1-4b7c935443fe","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":103,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"3e2e9d35-6af2-493f-9a48-c32ef572b433","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":103,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"f762934e-8ca8-40d3-904b-9027fc7dbb6b","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":103,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"e1d2f534-ae8d-43d7-8ff9-49502128b4db","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":103,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"3085ca4f-026b-496b-81db-5dbc39753c71","block_type":"box","text":"participation in the TOB Trust.","page_number":103,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"00e0ba27-41c4-46c4-b2a6-2d16186978c8","block_type":"box","text":"II-58","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ca511fe6-665f-4af7-861f-43ae77c47947","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9e2a074-bfa4-4579-965c-2114542f29eb","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":104,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"82b3b898-9486-48f3-8c1b-c0f79bc92340","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":104,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"366e4a92-d21a-4e84-9c02-dc0a68064779","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":104,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"014112bb-7d29-46f8-9893-8b994d3a4705","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":104,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"2971a5bf-42eb-4e20-8e9c-c4f436240f25","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":104,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"cf32f8c1-4fd8-4cc5-8647-18f005bcaf7c","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":104,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"df1db961-289b-4415-8028-950ccb16375e","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":104,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"0fa3601f-b884-4b20-a168-70ffad540f75","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":104,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"12b52dfd-8ee1-4e04-bfd1-08d4104b2d5b","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":104,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"efa9cc53-e92b-4708-8d50-c5731b635935","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":104,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"5ba7895b-388c-4b63-b542-21c30f98abd6","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":104,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"40373c9c-b2be-42a1-8492-d25edafd9fab","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":104,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"f82c6fe8-bdd9-4026-bff4-b3a886e9bf10","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":104,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"3c3784bd-8749-4ce3-856f-8958332e3c31","block_type":"box","text":"issues.","page_number":104,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"70c1116d-4e43-4b74-8354-e14b41cc03da","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":104,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"e8cfed96-f2de-463e-9fbb-93c6184dfe46","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":104,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"425ffff4-818d-478c-ad58-fe479e62ccab","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":104,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"01bee0b5-a661-449e-a779-ada3ba96cef7","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":104,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"83448c22-2f98-4a28-8018-e6fc52cc692f","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":104,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"849a9369-1409-4c22-af0d-9bf965c31a73","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":104,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"090f3dd8-1412-4043-9ab5-3b5ca31e942b","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":104,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"aec2da53-9472-4d59-897f-37c6c481ccf9","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":104,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"05e9b97b-7d22-49e1-af1a-05693a0b0d7e","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":104,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"23645d6f-69a0-4009-bc14-8d6d6eb4f4f6","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":104,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"3b08ca92-bd36-4d95-9fdc-793f24e02ae9","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":104,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"03013251-fcb4-4737-8b35-e05bb976527d","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":104,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"d0a86e8c-1ea4-4e4d-a87d-6b6deffa455c","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":104,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"0a981a79-0217-4de8-a187-13fa9be4937a","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":104,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"b7df2ca8-dc12-4fb9-869b-77a90b05ce2f","block_type":"box","text":"i.e.","page_number":104,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"bd3ef5ba-08a5-41ed-863a-961282188d4c","block_type":"box","text":", the Fund). In contrast, in the","page_number":104,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"391c4b04-52a5-4d99-8e3e-6e11bf4fd4a1","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":104,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"b3375a11-d214-4262-a13d-857b2062177d","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":104,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"f7868281-82cf-4a7d-8a92-0c93ef861951","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":104,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"669adae7-0126-4c0c-afa6-745b24c7964c","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":104,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"947e71f0-9bf6-4a4d-a0ae-b09bfa14d710","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":104,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"2b6d288a-c6e0-4481-8066-d497a3de9b8f","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":104,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"16cac54c-997b-4c93-8d3c-392fcc903f4b","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":104,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"9f09b1df-cedd-48dc-9cea-818438216d91","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":104,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"625c4b64-7cc4-45f6-ade1-d9dffb4b29ae","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":104,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"b869c32e-613f-49ec-be6e-ed947b1f1ad5","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":104,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"e535c1fb-fd4b-423a-9243-832a22e6dbaf","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":104,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"930d8fbc-7e1d-4d54-a4fe-d56af7469775","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":104,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"770d25de-8c09-4f9f-a79c-98158a81a6c5","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":104,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"e2b89c76-46eb-42d1-834b-b5dd8c8b1ab8","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":104,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"08272fd5-82dd-4e73-a794-d012eb5907af","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":104,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"0efb3dbf-5537-4fd6-a114-e42ce6a45f0f","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":104,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"fe17b078-35c7-467f-9c98-250000bbd38e","block_type":"box","text":"Trust.","page_number":104,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"862049f6-40c8-4e78-b90b-dc81facf6776","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":104,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"40d811a5-7079-4975-94a0-ca81b8c715b7","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":104,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"3d3f7cc0-64e4-400e-818f-5ff6646d7dee","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":104,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"cf064eb9-d229-4fd7-97f9-917bb58e5f04","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":104,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"6f4b60b1-b274-4688-8685-11647a07e218","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":104,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"f7b4d510-ee91-4e89-a34f-3f70000f922b","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":104,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"7516ddc2-e36a-43a9-96f4-6cfeaea30715","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":104,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"98bf3335-c53f-4756-939f-dbda1fde71c7","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":104,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"df384490-f23f-49e1-bde9-aadc59b61798","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":104,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"ea23e16b-6a13-4827-b017-b6da01b0e371","block_type":"box","text":"II-59","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da91b69d-ffae-45bd-8953-b43718572ac7","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6ac35aa-e411-4d58-80be-35a0c43e965a","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":105,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"1d08936e-e372-4c93-b132-a074d0c47531","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":105,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"b22f3ed8-866e-4dfb-9ae5-ab173406527b","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":105,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"4bc94ec5-4d2d-498d-a868-a633500d43ff","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":105,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"faa5b4ff-210c-4216-b887-9f00c1d1f0ed","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":105,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"2ab3f41d-3f1c-4db1-af33-900e26e0f9b8","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":105,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"cd930373-6937-41b8-ba1c-3e64cc638c53","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":105,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"a1fa2d22-e1de-4911-aeb6-1c56fc40e753","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":105,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"0f8caae4-d655-46dd-a205-fc2bbbc9bbbf","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":105,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"30c78409-1a8e-4680-929e-bf63f0a78415","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":105,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"264a249e-44af-4c51-a23d-78e8de738f27","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":105,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"fce11763-1ee2-4075-a938-c31c0a2b0fc6","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":105,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"88990a86-b623-4aac-ab0e-2ce3be02bff4","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":105,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"106e1055-3bd7-41a9-a0cf-53959a0b72d2","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":105,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"4ebf7661-5b45-4fe1-81d1-68e5811b2360","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":105,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"7df52527-b6ae-44d8-b1cc-055267df4075","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":105,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"c0c036d2-2feb-4f82-a8ad-56449324a013","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":105,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"6075c3f9-b2f3-405d-b7ab-491458be41b5","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":105,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"5b627efb-89c6-4374-bf7a-03fb82142879","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":105,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"c62ba21f-b102-4945-bb0b-aa9dae3237c0","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":105,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"2e3d5a9c-618d-4cab-ba51-76c53a1970ec","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":105,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"cd68b843-77cb-4084-9c3b-f8e4f6173d24","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":105,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"8833f14d-105a-47dd-94bf-fb2fa4e3cfe0","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":105,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"7172eedd-88cd-418a-8055-ba82876618c8","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":105,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"557297a9-6642-408e-8226-49dd735ec1f0","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":105,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"6b06e8f0-ade7-4114-829b-c10b10c51d50","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":105,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"ffaeb307-7f6e-46aa-8656-2f6a2e84cc90","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":105,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"941cdd31-01b0-4380-81f9-5422ac137334","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":105,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"64725525-34ae-453d-be0d-cb2da08ad08b","block_type":"box","text":"i.e.","page_number":105,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"0f3b0abd-4c4e-4fbf-afb4-05b98ec3497e","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":105,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"01c69325-90d2-4732-a159-a94afac4de0a","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":105,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"61bc17f5-6af5-49f8-baa9-c2147203f692","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":105,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"fd15949d-7a4f-4d04-ada9-de65bf330f0e","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":105,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"4682b687-8cd0-44c2-92b3-cff37027a454","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":105,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"f228ab11-0afb-4fcd-963b-d51d62cb405d","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":105,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"6cef3206-da6e-4162-82c3-bbb7aefa9935","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":105,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"b87b2acc-e90d-4f85-ae62-7ff5cd606157","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":105,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"5daa3323-42c8-463c-905f-a399dd2d926b","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":105,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"95d43c3a-6674-4030-9cb6-9cf554ebfd8f","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":105,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"5b6bc19d-15e7-49d9-82bd-ba3aba27ee76","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":105,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"2c6e0e2e-3624-49da-bbbb-0a84f5f3d053","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":105,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"cc342433-a6b8-4df7-bf6b-470950bdd735","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":105,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"3e209329-a122-4b1e-b4aa-26b78ea4c249","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":105,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"f38f2686-c61d-4c34-a0e3-6a2d9228e334","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":105,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"0b57a7d0-ed72-47a6-b7db-b3a7648da23e","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":105,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"a08d454d-2ac8-47fc-a128-1597889c2b56","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":105,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"222123ca-3601-45be-a13c-ba01bca327fa","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":105,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"60764b39-cdf5-4487-ae5c-13ae7114ea9a","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":105,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"9b047fd7-7779-488f-8067-aba77a951d85","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":105,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"e07cd777-7a19-482b-bed8-e645919a9628","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":105,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"cf2478b5-8794-4ed8-9f08-82dee60467c4","block_type":"box","text":"market is not yet certain.","page_number":105,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"968c954f-90d0-4698-bb57-9c1027179624","block_type":"box","text":"Yields.","page_number":105,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"d7af0bfb-bd00-4c30-8672-f1cf2d10dce3","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":105,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"87954398-3da8-4465-ab9d-ac8f24b114d0","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":105,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"ca26c152-9300-4320-b128-12ef4556685a","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":105,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"56fba5dc-2020-42de-9cf6-517e123b3bea","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":105,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"a0fd6bf2-104e-4926-912f-8a6d87173ecf","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":105,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"6ed4ddd2-63ab-42d0-8d29-8ee0d253ce29","block_type":"box","text":"II-60","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"435c6214-38d6-4f30-ab2b-ed0abd203c09","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20277e76-6940-4126-90e9-b826a02fc613","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":106,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"fb113d38-97a0-486d-b4bb-ee6177a3d543","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":106,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"17a05431-b291-44c5-9b52-42f31ea01200","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":106,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"5d2af311-a2a0-4390-ac9a-08a0db082799","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":106,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"c9025c12-236a-49ac-bb90-678115213cd2","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":106,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"2d93bb6f-3735-4eee-a166-8b38f414bac7","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":106,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"58c98d17-9d9d-45a0-93e2-1bb701d6e39a","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":106,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"587d44e6-9b65-4a8f-923b-269c8869e1f7","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":106,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"210732d6-25bc-45b9-951a-dbf23b120584","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":106,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"904417e1-5d43-4a29-b2a4-b72f3fc358ca","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":106,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"9045219e-618c-45a9-a4e5-0fdb1c0cce9e","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":106,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"cef49295-7d13-4407-a0db-295c57e5794c","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":106,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"3434f39e-6a34-4517-9d0e-dad04b9f9cb2","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":106,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"68d30c0a-12f3-4827-ad75-4a5cbdb7d40c","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":106,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"5f431cec-8259-4131-a6ec-61edc8fe5e9b","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":106,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"690737fc-0593-49d0-836f-37a1d17c3fe7","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":106,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"748545b2-597a-4fa0-aaeb-3eabd2c28b4a","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":106,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"22870aa3-33d1-491a-af15-0dcdd31dd14d","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":106,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"614c70a1-1783-4a6e-845e-358ce4bde6b6","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":106,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"e3c405c4-f690-4e6a-b910-a48e9e7de82b","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":106,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"9663e60b-c42f-4bb9-9f28-8ada1045e93c","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":106,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"a57eaae7-8d19-4fe9-b71c-6b6f4a29eb69","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":106,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"d1faeced-9f8b-46ea-8f89-6176e0b17379","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":106,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"b43ae4b6-2a56-4ce0-ab47-e747f60c3bd4","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":106,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"78852ab5-e1e5-4d66-bf21-805bc3061729","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":106,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"111b217a-0d19-45bf-a6ea-2d7cd2fbec2f","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":106,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"0ea6aad4-a05e-44bb-9763-16e876d0918e","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":106,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"180e110d-4a27-4ae9-a634-46abe940c1e9","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":106,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"7db5737b-b808-4ad1-b9b4-47eef096f3c3","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":106,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"e218bc60-e93d-46b6-8ff6-da9357fa38ce","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":106,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"02bf4973-b027-41dc-92a8-77a1183e2e9c","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":106,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"8a9d6177-d198-4b59-965d-2302e183671c","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":106,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"55b8a9f7-3d6b-4746-bf1b-eab8d5229b77","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":106,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"43726d49-def2-4929-b65e-589e18953d23","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":106,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"d5fa2454-8e4f-4adb-a04f-9baaed729dab","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":106,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"2f447147-5893-4f85-ae29-6c58152fe67e","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":106,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"71360094-ce6f-42d1-911c-4600861b0cb1","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":106,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"9a1d9a86-ef67-4ed2-b9b4-98614ce426e8","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":106,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"cc99af5a-32d9-4625-b602-0ba70746d795","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":106,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"7f7635e1-0147-4891-aa01-57705772593c","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":106,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"5383d10b-e2b2-4699-a430-0992ca5e36f8","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":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"a4444a9d-e9d5-4bd0-b80e-79bc9c882a81","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":106,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"96888884-d055-498d-a200-d7e02d3ce01e","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":106,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"e916ad44-bde8-4df9-b89b-2ab9a9e0b547","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":106,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"5a20879d-fc12-401a-8e1c-9a266185b328","block_type":"box","text":"Call Rights.","page_number":106,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"6dbd8845-e4ab-4921-88ef-4237b2373eaa","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":106,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"5504e335-e908-434e-a844-8750fd75eb59","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":106,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"1337eccf-97ab-4399-9285-42e0b36d322b","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":106,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"851cb691-9bc8-4723-b03e-78d31ea5c49f","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":106,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"ea78dd2d-55ff-4909-bc3f-cc340002b6ea","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":106,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"3bb1886e-8eea-4d42-a7ae-996b43b278b2","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":106,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"980971ae-1057-4664-9e2d-ac38a83a3a2b","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":106,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"7c21c321-ae67-44df-a949-3a748c1d8bb5","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":106,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"4ad21ad3-6468-49d6-b1c0-633ae7eb73c2","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":106,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"be62975d-5e10-4078-b517-42af5ea7b96d","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":106,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"02e620df-a13d-47f4-af71-9d5a3b6fb2a5","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":106,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"f982246e-dd82-4d14-873e-e0d751c72eb2","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":106,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"b38b1322-bf08-4d99-8361-05d2a820791a","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":106,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"0a73a861-6dca-4678-ae95-a8034086e491","block_type":"box","text":"II-61","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"971d2881-986f-4159-a16e-4dffc8c1bc43","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b7978008-4af0-412f-aa46-1a0243ca218a","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":107,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"cd5c89aa-2485-42aa-bc22-b6003d834220","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":107,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"663273f6-acdc-40fe-a0e8-bece5501c682","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":107,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"82eba434-f7a7-47b6-9718-c274e60a9385","block_type":"box","text":"i.e.","page_number":107,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"133a7b04-aab9-40e5-b170-6fd7919cbf03","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":107,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"5a28068d-80f3-43ef-94d9-bc0252bc6e4e","block_type":"box","text":"rates).","page_number":107,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"2e38b5f7-0caf-4fd4-9ea1-9a87956af173","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":107,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"063e2440-10ce-4f2e-9e37-0e97ce9590ac","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":107,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"f18b3659-dee6-404c-a256-91f40ef12837","block_type":"box","text":"e.g.","page_number":107,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"0e77eb73-e9d5-422a-b148-7b01f59192a6","block_type":"box","text":", an exchange of fixed rate payments for","page_number":107,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"3e28d8aa-eb2f-4c1c-bca1-02b4b4a1a181","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":107,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"bafa830f-555b-4482-8e56-4fd5519bfacc","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":107,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"a310525b-f3d9-4ea4-8d00-667d5b26db5c","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":107,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"412b388e-b43f-4419-8c6a-68b15e4c1bc8","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":107,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"f7c9bbc4-7d26-495b-bbb8-7e6e3d0519c1","block_type":"box","text":"with the same attributes as the swap (","page_number":107,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"e8eb82ee-cff8-42a9-9cd6-830c33375c5d","block_type":"box","text":"e.g.","page_number":107,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"ff2e2ce6-4036-4761-a976-b31ed7d4e93c","block_type":"box","text":", coupon, maturity, call feature).","page_number":107,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"3fe37c00-c55d-47eb-a8a5-c4d40151914d","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":107,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"41979f86-e994-458d-8099-3ab8fdea3b3d","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":107,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"43d0264f-e783-4466-9898-1dfc96fe2ecf","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":107,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"0d6ea205-c983-4922-9e36-92eddc25fb04","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":107,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"87084371-094c-435e-9e05-885fb64cac57","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":107,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"26b5cce3-207e-4303-acb5-02e387e87070","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":107,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"66e211c9-a87d-44bf-ba93-0bcce7c0a782","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":107,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"4dce5bac-8d79-4721-9d99-9d5dd3d61c47","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":107,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"ad7d6a3f-643e-4d98-8b28-b4c09b087775","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":107,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"708ccf51-6b35-46b1-a846-6a954d3147b8","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":107,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"d0858c81-c424-43a7-8e19-440cb6b21284","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":107,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"a64625e7-3ebf-48c0-bf8c-378726f9ddba","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":107,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"26885625-7807-4b81-af5e-d391398afade","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":107,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"5e5cd371-f513-4414-b58f-5eea1effef5b","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":107,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"9ebc4b2f-8f7f-4096-8a2d-148d49e5bbb0","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":107,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"6104f51e-6702-4c18-b458-30773c70e250","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":107,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"e1c003da-a2e3-4756-adf9-9df401a0e711","block_type":"box","text":"Insured Municipal Bonds.","page_number":107,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"6c95825a-717c-4683-b91d-37d975a40af1","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":107,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"0fb6ec33-d18c-420a-8566-43489eecdd14","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":107,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"692282f9-b5d2-4cb7-b62b-dd509a586c1c","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":107,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"8d6b5e8f-1407-45bc-8d99-30549e609370","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":107,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"e8152f17-d22b-433e-9178-7358010ba21e","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":107,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"21f61bb8-ff8c-4ed0-b9ef-690f59c8e3af","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":107,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"da86c34f-1887-4d6d-b285-db070b3b558e","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":107,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"a82e263a-bc5e-4aa5-af33-5d28ba72beed","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":107,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"6315bb3b-e62c-4cef-9545-03a2bdc3e5f7","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":107,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"8c58d453-7c7c-437d-821d-406433152c74","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":107,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"01ec6664-0afa-42f9-88b3-f239c9ec8990","block_type":"box","text":"bond could drop.","page_number":107,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"35e75a6e-c3ac-41fc-9b7d-d97957c623f2","block_type":"box","text":"Build America Bonds.","page_number":107,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"40557858-243d-4839-98c7-852b25de10a1","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":107,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"d4be5174-a4a1-48fc-82e2-5c8da5fecc02","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":107,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"b8b87536-73b2-4dbb-a7ad-6e67aca21cef","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":107,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"64050691-7d21-4b35-aa9d-42076350f07f","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":107,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"35291eeb-dad5-46ae-8071-bec766e2c813","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":107,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"6506783d-cccd-4826-92e0-5ce64b896bcd","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":107,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"cc9717d7-d4f8-4410-89d3-60061929b19b","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":107,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"5590ba15-cc4d-4448-bce9-e0d4ae55ab8a","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":107,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"9d7d96a7-3b87-4c3f-9d1e-7f76a00b3ec9","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":107,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"e095d407-d560-4194-a444-09d154de21a8","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":107,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"f33fdbb6-500f-4f93-b903-5aa1016df80d","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":107,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"22ce93cd-7408-4d51-8a6e-7de5e0c7179d","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":107,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"ad72e7c6-c9ac-4a00-b87d-8812e3840e26","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":107,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"bc39b586-bcd6-485f-a8c2-b748c870cb93","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":107,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"1cdca93c-8b89-4eab-a284-bb337f1de2d4","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":107,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"fc6ea367-1a80-43bc-afbc-18f85f83281b","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":107,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"947fe4eb-51b3-4194-bb20-6a241f4ef211","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":107,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"56c8762d-5d13-4b4e-bde5-ef2f1ca7a893","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":107,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"4ffe5157-36a7-41a8-9f05-0afac3ecef4f","block_type":"box","text":"II-62","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acf6ad45-2214-4de6-be48-e11842c5d5c2","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dd52f4ee-b898-4968-b021-710af517c3c6","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":108,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"3f012444-1b04-46b8-a547-c5d3bfb72c8c","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":108,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"8e06e97e-7a6c-43bd-81f3-1cd1fc307076","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":108,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"3525012e-705d-4e0e-a509-2ef7d17c9db3","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":108,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"8a7df08d-8b2e-4194-9f77-02ac300d5ad5","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":108,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"ce9c4a01-58ec-484d-94e4-9d80a64bd4ce","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":108,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"a22da505-1a6b-4904-bfbd-67028b64f9fe","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":108,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"b5b352cd-1dce-4089-b567-eb851e0e5c95","block_type":"box","text":"their face value to the sponsor (","page_number":108,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"a28412f5-fc23-440b-8a2f-7b8261027e28","block_type":"box","text":"e.g.","page_number":108,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"ddea392b-a736-4e2c-868f-0d33e8e32047","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":108,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"35c27355-e9a0-4ef2-9543-a270a45a301c","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":108,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"1bb2f223-6f9e-488e-abb6-beaaa9c43b25","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":108,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"a5fa14f0-f338-4e47-9a96-f9304cbec6a4","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":108,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"85b0cb26-51f1-443a-b49f-b876de759ede","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":108,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"ea8401fb-e7a3-4566-8bf6-27f00ae723c5","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":108,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"eec68704-5da0-4428-8672-830092217b85","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":108,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"be1bfbaa-e84a-42a5-8020-db65de3531b3","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":108,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"6d58b2e5-a9d9-4acb-ba3e-1be6d4e499df","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":108,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"f1ffec09-1743-40bb-8839-198f246fd1de","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":108,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"1bad6da9-a021-4214-a765-683eb8d5a861","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":108,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"2eb5fafe-63e9-42fe-8e74-b3936b002702","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":108,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"cc927796-63d6-403f-8569-6a8dccaab3d5","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":108,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"07ca0c79-5920-4858-9cc4-c3057cc6b7f2","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":108,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"9c37a919-b2c2-484d-9451-297346802571","block_type":"box","text":"such opinions.","page_number":108,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"9980d7a1-eb81-4023-96d8-2f28ad278cbb","block_type":"box","text":"Operational and Technology Risks.","page_number":108,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"53d9bcc4-8f75-4223-a9a0-9b7b5cc8938a","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":108,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"983f8c5d-17a5-4073-919d-f7bb34c316e9","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":108,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"255310b3-51fa-42e2-963d-3b3f0ad53cef","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":108,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"318de9bc-b654-4d0d-ad8b-b4d364ef7746","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":108,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"a141eb6d-a27c-48e8-9dc7-1b008871dfe7","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":108,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"1100d4f7-9ffd-46f6-8d1e-d997dcc6f1c1","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":108,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"170094a1-b3ab-4998-874a-73d8f2452f81","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":108,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"4b8b415b-a33d-402f-afcc-d0efb679f78b","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":108,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"856b5433-2293-40c5-9e45-bedab343f240","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":108,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"e1fa061b-9970-4a3f-8ad2-55caed95d3b2","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":108,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"d4fdc5f5-cf1d-4883-8fb7-3c75d48830b8","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":108,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"e5c21563-de06-42c4-866a-7b42b99f97c4","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":108,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"01e4e750-b11c-4fbb-a6ee-0cb19a0601ab","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":108,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"29d890a5-f11c-4c39-bebf-586a05aa05f7","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":108,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"1ca7513f-c225-45a1-96f0-42cda4b7dce0","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":108,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"13a3a4c5-1924-4eb6-b0f3-dfa9624dcd0a","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":108,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"4e2e0c45-a27a-412f-a77c-69bc8f0bb204","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":108,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"c9433894-f5dc-44a9-8c28-943bb415ef76","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":108,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"7acb7916-2f3b-4f3f-afa7-28064ba2b8e9","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":108,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"8f7e1949-1e37-4429-b9e1-ff16cdfd83b3","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":108,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"2982e43a-e702-452c-a521-c3a5ce9a9961","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":108,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"cdcd1bb5-228e-4498-8ef7-a4cb5ba01506","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":108,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"e65ee803-f9ec-4b49-bec1-468ca4356911","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":108,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"ecca9e45-cacb-49be-bb2f-7406763540f1","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":108,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"36e9edd0-f489-4e5f-9625-986c9fd7e30f","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":108,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"4e9b6b32-a53b-4418-8bb4-7f4e957ca91d","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":108,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"7ba4d3c6-309d-461b-9475-6fd9d7b660a6","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":108,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"8e2c3207-1121-4b9c-8371-94f80fe21e1c","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":108,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"d937f57a-e067-4ef3-9e8c-7b00cccdc1dd","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":108,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"c774a4e7-d77d-41ae-b573-7dd9550abec5","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":108,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"b63ee578-58ca-4141-a509-66d4812aac3d","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":108,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"31248444-712b-4d07-a248-d328f1929511","block_type":"box","text":"infrastructure assets.","page_number":108,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"ca0e6759-ec32-40d9-b2aa-26a626f022c8","block_type":"box","text":"II-63","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6920fee4-50a7-4813-8483-ce73460e0f9c","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7cebfb2-b24b-4820-937f-55f55b237f21","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":109,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"953eb514-ed49-4d3c-91a5-5d46e9bc9ed4","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":109,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"26028e0c-c60b-406b-837f-308a35d925aa","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":109,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"a757ed06-7601-43fd-875a-1b09773c3b03","block_type":"box","text":"or services.","page_number":109,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"73f7dd31-0959-46cf-b4c2-00179d1dc4f6","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":109,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"efe3c7aa-1123-4b11-853e-2a11cc5a7f7e","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":109,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"1f22b315-ef48-4945-b78c-6869bc620e6e","block_type":"box","text":"other third-party AI technology applications and users.","page_number":109,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"07cb1a8f-9e92-49e7-8ad6-d872c360f5d0","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":109,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"a22ace93-0eef-4716-ae77-4a9935a65c51","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":109,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"3626b422-8b36-4b4a-99ee-2dd6c4103649","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":109,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"a1772e51-483c-49c0-984d-066d48a40d9d","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":109,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"473c49ed-13d9-40c6-9c21-bf9558679f10","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":109,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9a386ba4-9e72-4eb1-93a0-cd3f485a0c5a","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":109,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"ea8f1877-133d-43f5-8873-49b5fba95c61","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":109,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"df5f328d-d5db-4460-8e2c-d791eef7f4fc","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":109,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"b5afee10-1e5b-48a0-b8e2-506d55a4e6ae","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":109,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"48df1e6c-c880-48ba-9e05-f1462668092d","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":109,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"8bfd76bd-972a-4dd3-a453-234975af35a2","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":109,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"b77015b2-aa4b-4f47-8797-191b0d0c0aa1","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":109,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"555a99bc-6f80-479d-8c7b-880d7da0251a","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":109,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"4316d837-7676-4d1a-a0e8-9ee01e0e55ce","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":109,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"1ecf5235-0bec-455d-b477-661bbb36a4c0","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":109,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"068cbd6a-1e22-42b3-94ca-bdea50a9613d","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":109,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"5564ffa0-025a-4771-a4f3-c02ce379f03f","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":109,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"eecf1bf2-1297-4041-9bc4-cf270f6f3ee3","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":109,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"c83fbdd9-229c-406e-b676-533bee3d0f8b","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":109,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"e05b7f1a-bf1a-4a0e-914c-a3f1ee00de95","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":109,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"651ee088-cf95-422d-a4b2-078f6cc6aa66","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":109,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"0a2318c1-11f7-4fc3-8e5e-c8e29ed2485a","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":109,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"8cdf1814-6537-4b99-9a6c-27037ce0ec3f","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":109,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"8d8ba246-63ee-4a73-a6da-feb5c4d08ddf","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":109,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"1c4088a9-a7ca-4098-92f9-185c80cd7aca","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":109,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"8f83efbc-05af-4926-b8c7-ccb763d3d548","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":109,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"c4c62234-2b74-47ee-ae18-b91a9ef85947","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":109,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"c73d13b4-b30c-41eb-adca-32efd94b2416","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":109,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"bb3632b3-c8d6-40d9-9009-a11efd484f58","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":109,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"6a3952b0-c504-4470-919d-2bbcfd13b1b1","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":109,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"1e801abd-0333-4099-a27e-f19a3c692cb8","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":109,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"e95559ec-9d29-4e56-a6c1-d1d7ae14c089","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":109,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"3af8281d-b34e-4996-9c48-3e7ddf7e3cdb","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":109,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"b5619b0b-797c-42c9-b113-29549b8ca09c","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":109,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"cf2101ea-0bf8-448b-900f-862ba2d0555d","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":109,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"4fb1313f-55ac-4413-9cc9-970795eca1bf","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":109,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"380df4aa-ef6a-465d-b840-1fcfaf869cc7","block_type":"box","text":"resources to monitor and implement required changes.","page_number":109,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"a489c10a-0508-4a14-ba1c-928b1351043e","block_type":"box","text":"Participation Notes.","page_number":109,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"eb38b710-3d0a-4f66-b61c-17e37236aa1f","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":109,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"b50717a8-1cd6-4d12-82cb-1624ad68fcae","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":109,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"33b1395e-9d1b-4f86-9cde-c0c99ccd7ae1","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":109,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"f89ad74a-a21f-4664-97d3-aef668309ce7","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":109,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"3bcbdaf5-8975-46dd-8139-8e04145bd439","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":109,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"78fc0cba-ed01-48ef-b402-ce228d5bf77a","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":109,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"91659572-90f6-4d81-b53b-ce9e1ee7a77b","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":109,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"73d4ed24-a9e4-4563-adef-ae271468a3b2","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":109,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"b9747ba3-5d76-46ae-adda-75acc4033931","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":109,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"1a051ee4-e0d2-4121-b80f-159e0de496c6","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":109,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"cc5f7e45-3ccd-4bca-b03d-229da89da235","block_type":"box","text":"II-64","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b29d2259-622e-41d1-b337-e6a108e620e5","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8c5e2f9-2a2a-4c38-bb1b-e9fd96a8b963","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":110,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d4ebec6b-c70e-430c-bbb5-b11c388d0a7e","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":110,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"74a8b06b-94fc-4f62-b433-9f7a1b730d8b","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":110,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"358ab0d4-637b-4dd9-b1fd-0e5188c01dab","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":110,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"5626a162-4756-4f8f-a504-384b986d75ac","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":110,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"81f6bd1c-1629-4c7a-81f3-1373462bcf27","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":110,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"edf43010-ad83-4187-b544-381587003277","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":110,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"052183d9-d466-48af-ab24-239885125b2b","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":110,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"2063bd44-c15a-44f6-b576-4392e6a4477d","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":110,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"0791257f-e24f-4348-a016-c279a5789f5b","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":110,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"74cfd55f-3fa1-431d-8935-540d2a4b6c6a","block_type":"box","text":"Portfolio Turnover Rates.","page_number":110,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"08682a08-736b-40a6-9ab1-01268f49788d","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":110,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"fcda7735-99e4-4b0d-9bf4-40692fa26e20","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":110,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"3d2c4c41-e430-4c2c-8f57-1b540276dfa3","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":110,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"161064ed-daae-4da6-831f-8578b3a74450","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":110,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"8b301e34-570c-4439-adaf-b71e623d0c65","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":110,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"0a3d550f-4baf-46e7-af7c-c85361fc7db8","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":110,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"eb67ebc1-6c8c-408e-846e-a3db0f13b899","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":110,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"ad5ba1c6-1a0f-4f46-87cd-1f40376bd6e4","block_type":"box","text":"i.e.","page_number":110,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"ef8e682d-85ea-4e98-8623-ac4bcb08274e","block_type":"box","text":", 100% or more) may result in","page_number":110,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"943d8fc5-1571-4ef9-9302-1603d08ad363","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":110,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"eeccc71e-f8e1-40ef-86ad-e4c648ea8f22","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":110,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"b1d85f1e-28cb-46cf-95a9-6eab0e040571","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":110,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"960885ca-4113-49ac-acd1-7e6fa01b1b25","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":110,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"bc89232a-8fa2-4a40-9d9f-8b6f6a041740","block_type":"box","text":"Preferred Stock.","page_number":110,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"0d7b3848-331b-45f7-9104-b8e577782cba","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":110,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"669aa66e-3baa-4e48-a64b-d85719724ff4","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":110,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"07aa6ae8-ed6a-4c6b-8cc2-08c3668c3255","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":110,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"01108602-5011-4b5e-b713-48626729dd78","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":110,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"81b647bd-8978-4bfd-a23b-6045b35a0239","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":110,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"e6b2ef6a-2e48-4258-a6e3-c434c3ae1285","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":110,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"d20bf62c-b006-4d26-878a-33f88d5bba29","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":110,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"56fdd2c7-2876-495f-bb9c-2586d4ec238e","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":110,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"17da5356-fbd8-4732-a32d-0fd793b886bd","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":110,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"931d84fe-8161-42cb-a8c8-6d2d06f987db","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":110,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"17fb3a8c-6b1b-4c3e-833e-c5b18bc84726","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":110,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"f65ab430-fa63-4565-9b40-600eadb6880b","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":110,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"0b992412-3559-4e94-892a-ed4a638dfe48","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":110,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"8c8ed7e3-aca1-4951-aa64-2f35355c4671","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":110,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"9cb7c37d-ae08-4af8-b9b3-844800a45226","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":110,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"a78290f4-12d5-436c-ba23-da2f9aa7a4c1","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":110,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"71ca5029-b250-4a62-a71c-ef132364d972","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":110,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"4b2fd108-0f58-4db6-ab7e-85eae6ed685c","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":110,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"9d3f9c09-0ce8-4e10-af09-6389ea4ec4ea","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":110,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"a2f092c2-17b4-440a-8155-8e15a74b1673","block_type":"box","text":"Trust Preferred Securities.","page_number":110,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"1ed61e71-d2d4-4275-83d4-b09f06056901","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":110,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"382cb750-8180-466d-820b-104070ca474d","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":110,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"e5c45e1d-e7af-4b14-a770-b7872c60a286","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":110,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"521dd4ea-9f7e-423b-907f-3f4c60321874","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":110,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"5912c715-84b5-40ec-a45c-44fd2b370a44","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":110,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"8d05359d-a20d-4931-b477-ac20ab70bd48","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":110,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"731b9e85-4b50-48bd-ad7a-aa6ceccba0cf","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":110,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"992f2d5e-3550-46f3-897a-2814527f8f3d","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":110,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"5954736f-6510-48d0-a3cb-a04d9020198b","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":110,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"b19a9be3-d80c-4b6f-8ef6-d0eff5df6580","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":110,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"dd33c448-165f-4400-8b43-8cd3ee156cdf","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":110,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"a49abb96-c947-4715-89bc-d546042d2ca5","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":110,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"2fabe614-b97d-4042-af91-64500817d3a7","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":110,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"85b63201-65d7-4aaa-bfc1-265a8f2fcbcd","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":110,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"30541aaf-1651-4362-adb5-a1bfe600759e","block_type":"box","text":"®","page_number":110,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"93375a70-7030-4cd2-9cca-bb01ecce46a9","block_type":"box","text":"”); monthly","page_number":110,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"77b6d0fa-83a7-40e6-9ee2-f7b538ef896f","block_type":"box","text":"income preferred securities (“MIPS","page_number":110,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"f1d66a81-87b4-49c6-843d-2672671cc292","block_type":"box","text":"®","page_number":110,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"4c93eb77-1edc-4ba7-b4e3-a541e54de87b","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":110,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"d6f8bb45-6475-4bc7-95bf-38784f766344","block_type":"box","text":"®","page_number":110,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"b681766b-730a-48e3-9358-df4eeaa4436c","block_type":"box","text":"” ); quarterly income debt securities","page_number":110,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"78d08060-e348-4776-aa5c-d2ebfce2f591","block_type":"box","text":"II-65","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a8be4c1-4f63-4c44-9dee-307d8e5aad17","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10997de7-69dd-495c-91c8-eaa3998c32f7","block_type":"box","text":"(“QUIDS","page_number":111,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"333d1dea-30f5-41c9-ad08-03a0fdd2622f","block_type":"box","text":"®","page_number":111,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"56d6e63b-966c-45b1-90c9-65fdbfa8892a","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":111,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"6833cea2-6aa4-4693-b349-9d193cdb8167","block_type":"box","text":"SM","page_number":111,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"b7d34260-fde9-4858-a29b-cf3a72c05213","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":111,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"515c42bc-49fe-4a4d-8478-9847c063965b","block_type":"box","text":"®","page_number":111,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"c3c21b52-c4eb-4e66-a7fe-a50a2d7adca0","block_type":"box","text":"”); public income","page_number":111,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"b9016fd1-78fe-4291-95e7-3c953059b980","block_type":"box","text":"notes (“PINES","page_number":111,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"bdcd459c-fca4-4dc7-9ad5-ffeecba85593","block_type":"box","text":"®","page_number":111,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"4260b8c8-9129-4cf3-9ffa-f15818d6ca1e","block_type":"box","text":"”); and other trust preferred securities.","page_number":111,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"81355f7f-9000-43d7-9646-91adaa487a71","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":111,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"d7ad7ffa-b539-4dd5-883a-cee43ba0eb1f","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":111,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"ef6cc1c3-d340-4f51-8a91-43cd2ba172ea","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":111,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"3e077245-a05d-40f9-bf73-9c9d419f1b34","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":111,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"2ebe1844-8809-4325-8ed1-47e359f7a075","block_type":"box","text":"regard to whether all payments have been paid.","page_number":111,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"f60c0ae1-96ba-4fe1-b87c-4b57df1c357f","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":111,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"fee0b12f-e3ab-478b-acbe-7a65dbd68fda","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":111,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"577f8581-a962-4ddd-bea7-f096552c2a92","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":111,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"51367a4f-cb77-4624-b630-38ca1a7d6bc5","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":111,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"f3cd1209-5c75-4ad3-90d5-620b81b5ce1c","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":111,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"1271af15-cf8c-4683-a836-c694b79504a5","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":111,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"aa16e9f3-a966-4b4f-bb33-9fd447bddb1f","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":111,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"414ddfe0-5a51-40be-8ef5-8228bf26388c","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":111,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"7f9147a9-e36f-4aa0-ba57-52265d5e453b","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":111,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"5e8d9201-96cb-43e6-9d30-35dde42ff453","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":111,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"35c20b15-cda3-4813-90bb-032022e9ab0d","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":111,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"ee2be77d-edab-4a75-a134-e6e2c41da376","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":111,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"183dbaa1-41b8-4846-8314-dac8d03f0703","block_type":"box","text":"debt securities.","page_number":111,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"0ebe7095-250c-46e4-9572-24de5a693a41","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":111,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"27613bd8-0a0b-4744-83fa-ccde7b478dd9","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":111,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"b453056e-f785-408a-806d-25e8f019e013","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":111,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"9ffb4e65-1fc7-4b00-a0db-de6d0845f83c","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":111,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"dda13497-2d20-4c2d-8862-6ed8699613be","block_type":"box","text":"geographic areas or in specific property types,","page_number":111,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"9c932eef-d3c4-463c-9af3-eb6f43213918","block_type":"box","text":"i.e.","page_number":111,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"38645d82-d789-4531-819d-fd6440a82f9f","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":111,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"faa47959-ce60-4079-a9b6-69cde9a9234b","block_type":"box","text":"buildings.","page_number":111,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"7f3c3c6d-4591-4e40-86be-894ed17d6ae3","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":111,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"c780d6d2-421b-4709-9a94-584881573e06","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":111,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"2da006c5-ac48-41c4-b9f1-6dfdb6f340a7","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":111,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"c8d142c0-0ea6-401b-98e3-6005fc54bcba","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":111,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"610b72da-d998-4074-8f2e-f00ab2d8062a","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":111,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"7886744f-32ca-4567-a299-74dc5d08a771","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":111,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"66ff5ac8-ba31-486c-841d-d2216c15c63b","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":111,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"3ea1d601-62f2-4f1f-804c-320f83346ba3","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":111,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"b5d27fd2-f8a9-477b-842c-9f7a57e0728f","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":111,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"51b06ac8-4edf-4c60-8877-6e54f9ff546e","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":111,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"1559f525-7f5b-4f4f-be90-fe89d66111aa","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":111,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"5ee5faea-aaf7-4fb8-8d01-abd4a2033368","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":111,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"80083d0f-6286-4e71-aeb0-f317a9f62848","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":111,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"a4d4f676-a8ef-46d5-8aa2-a19b612333f0","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":111,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"3a57f8b6-1f30-4e3e-8f6b-80418c12234d","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":111,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"87b58747-fba2-4e1a-baa1-6f97b46fb1f6","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":111,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"74b9e8d3-da42-44d0-83a2-fd99d121ba34","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":111,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"6eda527f-719e-40f3-b88a-bad5544fb3f6","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":111,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"2da54acd-3d17-4d4d-9969-cb327fdf2c99","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":111,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"e0a02732-d9a4-4f7e-b4c7-5f35e9947afe","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":111,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"f8408ef1-2953-4241-9d5a-78ced6b3604c","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":111,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"848e58c7-b9fa-46c3-93f0-d01b2eff7443","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":111,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"22376867-6219-40b3-b759-3400f747c082","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":111,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"27c47423-d4b5-4b90-9131-b63ea9de4605","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":111,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"0368b2fd-00dd-4cbb-a3c2-8d1739c8f7f7","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":111,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"5693d25a-8ab8-488d-8769-49cdfd59f4a9","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":111,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"9b5ac881-cb2d-4811-9798-d3b3900a727f","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":111,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"cfbeebf6-ecdc-4a9c-823c-9ab9784a0f71","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":111,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"9a6877b0-d8c0-4d2f-b255-6da4f20165d5","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":111,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"99cfdb1c-142c-4ddb-b861-ce15af73b0d7","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":111,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"b7afd42c-9213-404b-a1a8-64b080843816","block_type":"box","text":"II-66","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"343dc1d2-4217-4413-adaa-0a45f0325b13","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce7ab157-8199-40a6-8c0d-fb6a12ec4719","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":112,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"8b2a20d7-cef4-42c7-81b3-07294e3f4423","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":112,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"08ae749e-0652-403a-80a1-b803bbc70eff","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":112,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"8c7ea9b7-12ec-4151-b42b-21c4adbba409","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":112,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"d0defaab-7857-4993-9695-cc6c3d7df6b3","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":112,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"fa99793b-0924-4206-8a20-2c9020ee33a5","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":112,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"73363335-262e-4ee0-b5fe-fe3b92f3c7d9","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":112,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"26dfc84b-f906-4d07-8078-ab74c50f49a5","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":112,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"99ca4343-66df-420a-b9bf-332b2b718197","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":112,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"24b8541d-2f5c-4a53-bc98-50099e713aaf","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":112,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"685cf796-1c0c-42d6-82f0-4547f9b9cda0","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":112,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"07e3f195-8f64-4a8b-a0af-d416e8831477","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":112,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"6ddd19e3-e4cc-4a7e-990f-8628ee729eec","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":112,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"bf2eaf43-25da-4e82-b642-bc535c6f039a","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":112,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"6b7b85fb-9bd8-4c04-822d-2487ce77d90d","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":112,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"bdc772d2-dd50-4d0a-b098-40ad8263e550","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":112,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"24086def-b11a-40f1-896a-a9c463c175fc","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":112,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"5f19b0ff-bbe5-4c5d-8b10-d39bac1343d7","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":112,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"89bff5a2-5e5c-4b23-8e27-b390c3119ea9","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":112,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"08ac3230-8506-4d46-8ece-cfda1f9a7809","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":112,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"769dbded-4554-42a6-88a1-bab489c74868","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":112,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"93f70ee0-0b6d-423a-a86a-f1c000596fd3","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":112,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"db15d2c7-c855-4e69-ac9b-b83291bd14a0","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":112,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"72c7993b-b2c6-4f2f-8dac-83a1b3f8490c","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":112,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"7c77471c-66da-46fa-81d6-d25df0120044","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":112,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"a3c58042-916e-4b84-8a22-4ff3993f013b","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":112,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"6874078f-d9a5-455c-aac4-6ede30b58d70","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":112,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"a1ce5896-e6bb-499c-b7bd-272b3c73a3a5","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":112,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"cba40730-bbfa-49a4-be23-ac3210493c09","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":112,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"185fe84e-fcf1-4f8d-860f-4a53f3416be7","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":112,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"361031b5-a684-47fe-b389-9c9d57320069","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":112,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"c313f530-8564-43f2-b4a9-a4bbfdfc1b9d","block_type":"box","text":"conditions.","page_number":112,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"1daf5100-481a-4096-bd81-9671918fb61d","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":112,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"a6b2c293-d571-488f-aa56-dae72867e51a","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":112,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"67ea8aa9-ef75-4a5f-a268-f5fd624d9190","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":112,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"574b6c7c-42e6-4a81-bfd7-f6c2a328d883","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":112,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"13229c9f-4b9c-4f4c-90e5-a3b4249155c9","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":112,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"29a6a8e5-b314-4532-a7f7-de4e06d47b51","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":112,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"cef64824-b4fa-4217-b6cb-20e83814c69d","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":112,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"4462bc05-592d-49ea-8e1a-1899e803e154","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":112,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"bafbda2f-7ec2-4475-8e4f-32fc4dadc8c0","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":112,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"2348e068-2a6f-4232-96a2-ca7e5c2c7de7","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":112,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"6a7eebd4-d50f-45aa-9056-1759846a74d3","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":112,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"fcb89fc2-b66a-4f46-8413-4ec33f1f1fb8","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":112,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"44597bbb-8ae1-4dc0-8299-75337387c3e0","block_type":"box","text":"affected by such events.","page_number":112,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"6d06486a-df8f-42e8-b9cc-32c82dfb9a6f","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":112,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"5ee1933d-3dd6-464c-9430-a9954ac36a3f","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":112,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"cab17180-baa1-47dc-9974-798943f1d0eb","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":112,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"a0591b01-97b1-4b85-928f-b6b503269717","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":112,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"7e1f008b-3cf9-4bf4-b826-87d6a2253a73","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":112,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"c6eb08b8-03ca-4910-8164-565ae45b1d33","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":112,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"42766d3d-01f7-449d-b30b-f4157ab4ff2c","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":112,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"9fec12f0-3817-4910-bace-4caa52cf82c7","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":112,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"ae9ba73a-2d13-4aeb-b188-3d79e702c525","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":112,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"8eec3795-c2b8-45de-9d46-128bc7c845f6","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":112,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"481570d6-e1b9-4769-a15f-7a0b6e06721b","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":112,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"10d8228c-7085-4c45-9a45-a7acac79b153","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":112,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"764e60f6-ea51-4b4d-b34e-100da37fb6b3","block_type":"box","text":"II-67","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"07b0437a-beb2-4b7f-820e-75b87da88ee9","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce0f70bd-36c8-4c7c-85fc-734bde75dee8","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":113,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"b437ef75-64f1-49a6-ace7-5c08a075935c","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":113,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"908dd9a1-85ce-42a1-86ab-d2675182be56","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":113,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"573a3d55-5349-4b8a-a1dc-08934f52143f","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":113,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"db8562f2-0f1a-4496-8f30-c0446562b3af","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":113,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"7cbc70e9-0add-43c5-aece-55234f46e3ac","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":113,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"7705094c-6bfa-408a-8d3f-ce6da64b9147","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":113,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"ef2cb6fa-08c2-44a3-96da-33c091a74f9a","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":113,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"a7249642-5331-43e1-8894-b9f52a3c3441","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":113,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"cd8a8a01-93ce-4220-b4e4-ecef89263b43","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":113,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"1c340931-8129-4979-bca9-5d5bdfde2a19","block_type":"box","text":"investments.","page_number":113,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"aa146090-3b2f-4040-915d-4d5e7cfc0f56","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":113,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"34ef7237-d787-4c05-8bcd-dc1532067346","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":113,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"6f4c4541-26e1-4fb0-ad8c-f297ef6ff0b2","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":113,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"7112b3f8-7959-4675-bf00-287aaa366530","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":113,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"caa3df9e-1c01-4884-90c2-6f3da61bb191","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":113,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"eb0808f5-38e0-45e5-82d3-4ff82f1316aa","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":113,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"15b8d944-a671-4599-a0f6-562d4bf98d94","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":113,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"c307bb19-2001-44c2-a828-de4a10943c0d","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":113,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"eaa67b94-e92e-4ed2-8825-f1d43e85430b","block_type":"box","text":"Legal and Regulatory Risks.","page_number":113,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"5a2fe5c2-87e2-44e3-9501-b18cde60b58a","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":113,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"0cb2be2e-22ed-47d8-8188-892eb57d56b4","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":113,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"440697a1-7511-4b93-ab0b-97128583e30f","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":113,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"7fe1b0db-0aa2-4039-aff5-ced51295f1b3","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":113,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"9a0875a2-6df9-4a07-bb1b-2c3e73e06d31","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":113,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"6a596f15-b92d-44bf-a364-b91a31b19ebc","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":113,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"8adc2629-c62c-4996-b31c-f4e6c1c2d9fd","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":113,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"65fb68e3-f932-429c-8498-b7c71cc7fd68","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":113,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"c0ef6354-fee6-4e05-8a39-457f2decf67a","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":113,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"a8dae8a9-f70b-4d80-b2bf-14ab2eba966d","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":113,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"657be220-43e9-4421-8eaf-8a05de5700ee","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":113,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"9c03c043-ca65-4a30-a19b-8cb182696573","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":113,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"1a0c2dd9-e758-499e-8764-c6cd3f0c2b8b","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":113,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"9fad8765-ddd7-43e7-9c3d-7219bdd709e4","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":113,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"47a28fd0-b1b8-4d82-bf04-a961002e92dc","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":113,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"cc56131b-f1c8-46ca-bb45-1a0200a7d4e2","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":113,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"fe5c5367-6cee-4a56-97ad-9da966b84c8a","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":113,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"a3695ffe-5181-4ca9-93e4-4e08967fcf2a","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":113,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"c750fcac-c2c0-4110-81a3-878fdaffd582","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":113,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"025b8eb6-9728-4db9-bc6a-fa61613985d4","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":113,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"c2782076-a468-4f47-87cd-7e36ea2e35fd","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":113,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"45dedfd5-40b3-49a7-a2d2-330a448da1f5","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":113,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"eb0f006a-206c-40dd-a61c-a3d78fb0699e","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":113,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"2a03df6b-9bf2-45c6-80fe-313c03f5ceeb","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":113,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"ad2bcc08-a668-4058-9a09-83c3e804b58b","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":113,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"3325d75b-5d81-48fe-9346-dc14f9fda081","block_type":"box","text":"Geographic Risks","page_number":113,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"ae355914-5dc2-42e3-94b4-02a5bcdbc1ea","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":113,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"6a24ddc4-634d-4caf-b397-4750e57e0c71","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":113,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"099f08b5-1d47-4fe0-bf3a-c1412ed67c3a","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":113,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"402ad0e4-986c-4be2-8fb3-b50274e37be5","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":113,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"9e6a1e0e-0be3-4d47-8b80-15ef940a4541","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":113,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"7a5eda25-a4a1-44ec-a6d8-9cbae7ac2448","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":113,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"f6177475-fbb0-4b0e-9c20-22ae94aa8567","block_type":"box","text":"Fund.","page_number":113,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"73f034e9-45fe-4d92-8d0c-4b71a91bd119","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":113,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"0fd605c0-bd77-4c9c-b64f-fb1e57397c19","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":113,"box":{"x":363,"y":846,"width":514,"height":11}},{"id":"80302503-34da-44ab-8cc6-c19d9db2ee57","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":113,"box":{"x":69,"y":861,"width":782,"height":11}},{"id":"02f2649a-e79d-4362-887b-8d028f12967a","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mortgage-related securities,","page_number":113,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"2b13aa9b-4126-480b-8fbd-554bc38f2d1e","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":113,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"82d550f3-1722-4ff8-9025-8cbcea00c2b4","block_type":"box","text":"rates based on LIBOR or may have been subject to interest caps or floors based on LIBOR. The Funds and issuers of","page_number":113,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"80edc05f-7c46-48d6-b490-9236a96760a7","block_type":"box","text":"II-68","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77fe6cda-706d-45a3-986f-5d911c4b8c16","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb422656-db3e-406f-9e4b-4f64e01cabac","block_type":"box","text":"instruments in which a Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":114,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"c6156099-470e-4f6f-b855-a185a9cd60b0","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a result of","page_number":114,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"a1b2a743-ee06-49a1-9fae-929de8e6e6ad","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":114,"box":{"x":69,"y":75,"width":779,"height":11}},{"id":"ea504fa4-1de0-4a41-bb68-1ad0d8295e6c","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":114,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"619d6b4c-aa9a-4988-895a-a45180e582ce","block_type":"box","text":"continuing to develop (","page_number":114,"box":{"x":69,"y":105,"width":160,"height":11}},{"id":"57bd8721-8310-4510-8e3f-d1ece830d5ad","block_type":"box","text":"e.g.","page_number":114,"box":{"x":231,"y":107,"width":25,"height":9}},{"id":"4cea5bb0-f0fd-4cd0-babf-c5b93fe8ac7d","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":114,"box":{"x":258,"y":105,"width":641,"height":11}},{"id":"fc5566cd-7c75-493b-a63d-d2f7452c1e7a","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":114,"box":{"x":70,"y":120,"width":777,"height":12}},{"id":"569a6546-c55e-4661-99ac-c68ac362c449","block_type":"box","text":"markets or particular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":114,"box":{"x":69,"y":135,"width":776,"height":11}},{"id":"c59c49eb-231c-4428-8a81-ab31f309abc4","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":114,"box":{"x":70,"y":150,"width":493,"height":12}},{"id":"94e471cd-43c7-4b50-996c-25d0c2b078f3","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":114,"box":{"x":102,"y":173,"width":750,"height":11}},{"id":"b0f088a8-e084-4f14-82cc-5390e297a1f1","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":114,"box":{"x":69,"y":188,"width":803,"height":11}},{"id":"4374b636-b111-4d2d-97a7-a4974ac48f5c","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":114,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"0fff15eb-ea0a-4e42-ad4a-a760e0fc04f0","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":114,"box":{"x":70,"y":218,"width":801,"height":12}},{"id":"b314dd19-9807-4622-9609-0510cae960da","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":114,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"a9b0491f-6d9e-4302-906d-af8e4a413c38","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":114,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"b71fe8b4-892f-4439-a3fa-ef800dc2d802","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":114,"box":{"x":68,"y":264,"width":825,"height":11}},{"id":"354271f7-2d15-4a59-a67c-1dacc1f990d6","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":114,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"f0b27449-3d24-41de-a738-206d7a8edc00","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":114,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"8ccb3338-ecfb-4728-b791-0981816f43bd","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":114,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"0b8d3091-d5cc-4ee6-85ab-3d7642a930a1","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":114,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"9eb2fe6d-ee56-45a2-bcb5-208d5cc4cef2","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":114,"box":{"x":70,"y":339,"width":824,"height":12}},{"id":"e595e527-9cf9-455f-8fa3-ef21b5706f1b","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":114,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"cc427e9b-da86-486f-9fec-34509fac70f8","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s","page_number":114,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"4603814c-0c41-4daf-a58b-e1d6110950fb","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":114,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"f5d9880a-9c76-4164-b88d-3bf3be0f50fe","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":114,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"078cdc70-cdbc-4ce9-9467-276e4243b80e","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":114,"box":{"x":68,"y":415,"width":384,"height":11}},{"id":"28109b07-2d47-4ba0-ac0f-1846835adfcb","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":114,"box":{"x":102,"y":438,"width":782,"height":11}},{"id":"0a036a1f-b324-4af8-ae80-42681348806e","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":114,"box":{"x":68,"y":453,"width":786,"height":11}},{"id":"78963f78-2daf-4fe1-94a1-b5d6997a177b","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":114,"box":{"x":69,"y":468,"width":746,"height":11}},{"id":"2eae5c97-cc78-44bb-848f-829040c04a6d","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":114,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"e2480a4e-2fd7-4512-bf55-ead7f5e70703","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":114,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"dfc495bf-306c-4eba-9e79-91a03f611546","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":114,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"b3b7bc2a-e908-4619-b1fd-ab9340ef20bd","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":114,"box":{"x":70,"y":528,"width":830,"height":12}},{"id":"cbf4f6ff-6327-4cdd-8c7f-3440c94432b5","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":114,"box":{"x":70,"y":543,"width":757,"height":12}},{"id":"b89738dd-ad14-4ab7-99c5-baad985eedee","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":114,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"5e94ce0c-a7fd-4040-b632-cda9911ff569","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":114,"box":{"x":69,"y":574,"width":840,"height":11}},{"id":"3ef08a25-592d-4192-b1ce-bda888c54fc5","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":114,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"9bb4821c-9c45-4813-8018-84e6963a5712","block_type":"box","text":"consequences which cannot be predicted.","page_number":114,"box":{"x":69,"y":604,"width":298,"height":11}},{"id":"c40b3178-22c6-41ca-91bb-36fa6fb68c5e","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":114,"box":{"x":102,"y":627,"width":432,"height":11}},{"id":"2b7a7d15-5e3a-4a75-af63-66b78186afdf","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":114,"box":{"x":541,"y":627,"width":347,"height":11}},{"id":"56aa761d-8a32-4b73-8050-72627815cd23","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":114,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"f629d5d3-c0f8-487f-a2ca-bc7ec54dbaa1","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":114,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"ec0461a6-fa14-48fa-b841-e4ac98964c90","block_type":"box","text":"term of the agreement.","page_number":114,"box":{"x":68,"y":672,"width":164,"height":11}},{"id":"fe62422e-d7fb-4bd9-9b3c-6126b01b9725","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":114,"box":{"x":101,"y":695,"width":788,"height":11}},{"id":"539352de-7618-4165-8ef4-92c642e8d6fc","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":114,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"d60b71b4-c22b-409c-8065-29f650101056","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":114,"box":{"x":70,"y":725,"width":821,"height":11}},{"id":"c949acdc-8464-4211-9bfc-84f8723feb60","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":114,"box":{"x":69,"y":740,"width":790,"height":11}},{"id":"c8e89da1-b2d4-4f6b-b6a0-7d353a9ff98a","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":114,"box":{"x":69,"y":755,"width":827,"height":11}},{"id":"7436660b-7e2b-4830-adee-c87a3fc2340c","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":114,"box":{"x":69,"y":770,"width":788,"height":11}},{"id":"03df8b86-a05b-41b3-99ef-8764ab01b306","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":114,"box":{"x":68,"y":785,"width":522,"height":12}},{"id":"0f447314-2dbd-4269-953c-e294b214c92c","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":114,"box":{"x":102,"y":808,"width":792,"height":11}},{"id":"043d777d-1b9e-4c30-b507-042edad08f77","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":114,"box":{"x":70,"y":823,"width":784,"height":12}},{"id":"6e7537e4-31ae-4e0f-b971-61f8a3039ec6","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":114,"box":{"x":69,"y":838,"width":837,"height":12}},{"id":"71371322-3a2f-49d6-8351-509ceda0797d","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":114,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"02d1f6db-b6a8-41eb-a79d-d90bc59aaf1a","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":114,"box":{"x":68,"y":869,"width":770,"height":11}},{"id":"fc9feed7-c0fd-41f0-9604-c24246b55fbc","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":114,"box":{"x":69,"y":884,"width":802,"height":11}},{"id":"d738854b-6618-44a9-876b-94375ef7e99d","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":114,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"b167f6e3-7b53-427e-95be-252fe9b08e12","block_type":"box","text":"II-69","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5e43847-cad8-43f2-90d5-de8a91489b2e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"129c566b-9f1d-4828-a00f-34146ad7053a","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":115,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"87aa2d0e-bbcf-4a76-bf6a-1284dc353e67","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":115,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"78ee2363-108d-4ffd-8177-10bd250383d4","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":115,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"4ad83e80-0c43-4dce-9f77-5a279fb5d690","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":115,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"c2554d71-2714-4c57-a77b-4e7645b6dd4a","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":115,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"b8dd04df-a07d-4a5c-b2c6-21c062c26db9","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":115,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"1ceda0aa-e35d-487b-a15b-93a23d4e716f","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":115,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"2dac6402-3214-4422-b34c-179e6ee51eef","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":115,"box":{"x":69,"y":151,"width":810,"height":11}},{"id":"69d0c3ff-3d81-410e-add7-e19db743152a","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":115,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"43ff1565-c822-4511-b5d1-537af817dde5","block_type":"box","text":"or by another authorized securities depository.","page_number":115,"box":{"x":69,"y":181,"width":329,"height":11}},{"id":"de09cd58-0c54-43e1-9928-fab152e2e7fc","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":115,"box":{"x":102,"y":203,"width":770,"height":12}},{"id":"7cca949f-571e-4b10-8c21-ac9ebfe42876","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":115,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"0f71790d-4c16-470c-8622-470d662bac27","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":115,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"d061f018-49d4-441a-8964-7078eda0626e","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":115,"box":{"x":69,"y":249,"width":778,"height":11}},{"id":"ae5002c3-7076-4a88-9027-97605a72c183","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":115,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"5bdd5a88-270c-4f1f-840d-4ce0c74975d8","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":115,"box":{"x":70,"y":279,"width":810,"height":11}},{"id":"e6c8af1a-3926-49b5-9e88-f44afd9cbabf","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":115,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"e660cdd7-1eb3-4a0e-b179-3f1cd7ace444","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":115,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"2a8b7a6f-1d44-4adf-a97e-a20df9d74992","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":115,"box":{"x":69,"y":324,"width":817,"height":12}},{"id":"a4fdc3eb-047f-440b-b743-c8cf8ba77e73","block_type":"box","text":"the repurchase price.","page_number":115,"box":{"x":68,"y":340,"width":151,"height":10}},{"id":"d2897a61-ba28-4340-9052-5cec30cb8132","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":115,"box":{"x":102,"y":362,"width":805,"height":11}},{"id":"8a2629aa-141a-4de0-b76b-4028624a2dd9","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":115,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"c0fc14ff-a230-4bf5-a749-85496cd6e680","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":115,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"15bf1b39-b340-4fd3-800b-180da0a04202","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":115,"box":{"x":69,"y":408,"width":767,"height":11}},{"id":"25060b62-195a-4c68-bb38-08fe5f5050b2","block_type":"box","text":"strategies without the repurchase obligation.","page_number":115,"box":{"x":69,"y":423,"width":317,"height":11}},{"id":"73f41fad-5109-4936-bd36-e713e613da53","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":115,"box":{"x":101,"y":445,"width":782,"height":12}},{"id":"34958d64-90c5-4c66-b282-a094e35a6f7c","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":115,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"9b3a6a8f-b484-4927-a069-267cf76f5d6b","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":115,"box":{"x":69,"y":475,"width":799,"height":12}},{"id":"a9d34524-975b-460a-a9a7-00e8242267e3","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":115,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"a515bed6-64e2-4f6c-94a6-cde9497dce4d","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":115,"box":{"x":68,"y":506,"width":825,"height":11}},{"id":"9189c4af-cd21-4499-b438-c9176e06fce3","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":115,"box":{"x":69,"y":521,"width":374,"height":11}},{"id":"a5c18178-830f-4952-88ff-00bee301f79a","block_type":"box","text":"i.e.","page_number":115,"box":{"x":445,"y":521,"width":20,"height":9}},{"id":"71e57a92-4e8a-43d8-b607-42b868fe8175","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":115,"box":{"x":468,"y":521,"width":434,"height":11}},{"id":"6c933723-35ed-4441-83ba-fe512ccb7c69","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":115,"box":{"x":70,"y":536,"width":813,"height":11}},{"id":"2eeb7696-f057-42bd-b030-fad026cb0e57","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":115,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"d789b39a-31ef-4786-9414-8c0f90b0cc34","block_type":"box","text":"and income involved in the transaction.","page_number":115,"box":{"x":69,"y":566,"width":278,"height":9}},{"id":"5266112f-d830-497e-a75b-529a129df114","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":115,"box":{"x":102,"y":589,"width":800,"height":11}},{"id":"5eaab864-6996-4c50-8880-462e5b921448","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":115,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"72eea79f-0053-4307-8be0-c09e8558997a","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":115,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"5932e7f5-90c4-4d50-b656-5ce4c2c17b36","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":115,"box":{"x":68,"y":634,"width":790,"height":12}},{"id":"8f7be35d-65f3-40ef-b587-22ad78e6f138","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":115,"box":{"x":69,"y":649,"width":818,"height":12}},{"id":"b853c71e-d479-4aba-a452-180c3f5e38b4","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":665,"width":783,"height":11}},{"id":"b42228df-7808-4f72-a78e-f4859f886293","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":115,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"d54c4be2-5a67-481e-a9c2-4949feda5903","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":115,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"078dfca1-bfba-434f-9837-8dd4a2dd61af","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":115,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"1e093e35-c82a-475d-a863-0574baedbaf6","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":115,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"f38f19d4-0fd6-4df7-8e14-3648bba6c9d7","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":115,"box":{"x":68,"y":740,"width":824,"height":11}},{"id":"ff1f0092-1047-4ed7-a1cc-3efbe426a959","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":115,"box":{"x":69,"y":755,"width":279,"height":11}},{"id":"a05e0140-4789-4cdf-9165-66f6e1340de3","block_type":"box","text":"Restricted Securities.","page_number":115,"box":{"x":102,"y":778,"width":157,"height":9}},{"id":"dcc57b2f-48f6-4108-903c-fb5afe95164e","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":115,"box":{"x":265,"y":778,"width":617,"height":11}},{"id":"41ffd18b-3f20-497b-a623-84dc8518de6d","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":115,"box":{"x":69,"y":793,"width":801,"height":11}},{"id":"761f350b-cc2a-4e43-92b7-857b74ef78f5","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":115,"box":{"x":69,"y":808,"width":808,"height":11}},{"id":"5de8d1df-237f-4ca6-84ae-dbc0eb86fc31","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":115,"box":{"x":70,"y":823,"width":802,"height":12}},{"id":"13c66d0e-e573-4cc7-b64e-b288fd7f68a6","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":115,"box":{"x":70,"y":839,"width":834,"height":11}},{"id":"3468bc0c-5785-43cb-b92b-58be18ffa92a","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":115,"box":{"x":68,"y":853,"width":825,"height":12}},{"id":"9554690e-7d93-46ae-a849-a7bdcccaba1d","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":115,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"1f69f3ae-15c7-42c4-95d1-8fd3679a1133","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":115,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"a42889d8-23bd-4a9e-ad38-ad57947a2fe9","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":115,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"e21cc3c7-31dd-49cf-96a8-7007ee69c822","block_type":"box","text":"II-70","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"83551de6-46e0-4675-9f76-791250b4b6dc","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a05f798-2262-4e0a-b213-fba05914cdc4","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":116,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"bb33efcd-9bca-4ef3-8319-b586b7933e6f","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":116,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"aa892f36-a464-451c-89a3-e4c2cef0756e","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":116,"box":{"x":69,"y":75,"width":769,"height":11}},{"id":"1ee17caf-83ec-4510-8c56-aab9597bda6e","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":116,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"05db912b-8110-47ae-a3d3-b9de1ce2f8cb","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":116,"box":{"x":68,"y":105,"width":805,"height":11}},{"id":"f3f2b6f4-7e8e-49c0-aa4f-bbeec631881d","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":116,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"9e62860b-181f-4900-82d0-40e4fea97712","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":116,"box":{"x":70,"y":135,"width":815,"height":12}},{"id":"ae295f0c-94ab-4f2d-b73d-704351507dc2","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":116,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"7dea34d6-b981-4a96-bddb-7a70daf92203","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":116,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"6ae7682a-86ff-42eb-8ab5-62a3cc778dec","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":116,"box":{"x":70,"y":181,"width":830,"height":11}},{"id":"ec3dc603-fdcc-4534-a9fb-0dea7ea8f714","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":116,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"06f9eacf-fa3a-4c85-9883-c5262fb54626","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":116,"box":{"x":68,"y":211,"width":825,"height":11}},{"id":"c68ae744-6083-4ed6-9569-08ba03296ce4","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":116,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"ce64feb0-a366-4026-8c8f-643b09d430a4","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":116,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"869663a0-86f9-44a6-9792-2e751514f471","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":116,"box":{"x":69,"y":256,"width":834,"height":12}},{"id":"2a2fbb28-80b3-48f4-8091-9dc2fecc78d9","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":116,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"fe565aef-570b-4642-8144-c1e66f311ad1","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":116,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"49f2d55c-fd84-4eb0-8413-5486f8b583d2","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":116,"box":{"x":68,"y":302,"width":819,"height":11}},{"id":"7bc1294d-cee8-4b9d-9694-261591c91d26","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":116,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"121968aa-2bfb-44a5-9d95-acc1ddf76d5b","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":116,"box":{"x":69,"y":332,"width":798,"height":11}},{"id":"a8f5d5e4-7f8a-4faf-b365-9f717fc3c483","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":116,"box":{"x":70,"y":347,"width":780,"height":11}},{"id":"51b33e34-e5c9-4684-a280-f43a03e836a2","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":116,"box":{"x":70,"y":362,"width":773,"height":11}},{"id":"b72682d7-1aa3-4005-8d07-9c5b353b5794","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":116,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"599aaa95-462f-4a48-8794-c9a40fa88c03","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":116,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"73215778-b30f-40fc-bed4-01446a671b2c","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":116,"box":{"x":69,"y":407,"width":828,"height":12}},{"id":"5803e6ca-dea7-424e-9179-9b3cdd08b5ff","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":116,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"86da0280-0bcc-4c7d-886d-d33c8f047e7b","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":116,"box":{"x":68,"y":438,"width":804,"height":11}},{"id":"4df6ad27-194c-465d-a129-06f73b2001f3","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":116,"box":{"x":69,"y":453,"width":647,"height":11}},{"id":"78c8b886-511b-4001-ab82-972e33817d6f","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":116,"box":{"x":102,"y":476,"width":714,"height":11}},{"id":"a0aaf703-14f6-434d-ab3c-cc76e71dd21f","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":116,"box":{"x":70,"y":491,"width":823,"height":11}},{"id":"821fded4-f56b-4cbc-ac23-fcf9b2e35e76","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":116,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"c630ccb8-6b6a-4195-a38d-2a088127da24","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":116,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"dbc76752-5879-403d-b957-cd3159e866f2","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":116,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"d026a4a4-906b-48fc-9797-ee43b9caa097","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":116,"box":{"x":69,"y":551,"width":787,"height":11}},{"id":"a5cc0d54-d999-48f7-8dcd-4432cc780359","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":116,"box":{"x":69,"y":566,"width":833,"height":11}},{"id":"374d1ded-78bc-47c3-b2ec-573ae0e6873a","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":116,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"1a8b3e18-454d-40d9-9026-bbd8ab6c3541","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":116,"box":{"x":70,"y":596,"width":833,"height":12}},{"id":"d39fed92-6ba2-4b41-87cb-f684ff16b82c","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":116,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"f2473aee-7b18-4f8f-a393-de2ea34e5dc1","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":116,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"8d6a6e2c-1db6-4374-a65f-42d512ee229a","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":116,"box":{"x":70,"y":642,"width":804,"height":11}},{"id":"6526f05e-83a6-45ef-bc8b-148f140cf59e","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":116,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"f6af529f-3029-4aa7-beef-0ca73c47b1ab","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":116,"box":{"x":70,"y":672,"width":835,"height":11}},{"id":"e75f2118-8e6c-40ad-84da-5e5d52a01957","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":116,"box":{"x":69,"y":687,"width":768,"height":11}},{"id":"b4798067-235d-4bd6-a849-a0cf5aa9916b","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":116,"box":{"x":70,"y":702,"width":815,"height":12}},{"id":"e90fe18d-e58d-40c8-a17f-8143927d9a11","block_type":"box","text":"especially as that Fund grows in size.","page_number":116,"box":{"x":69,"y":718,"width":264,"height":11}},{"id":"a917c0ed-0f8c-475a-bf78-1d973371ad65","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":116,"box":{"x":101,"y":740,"width":762,"height":11}},{"id":"9c1193d4-2bca-4914-ac83-5e8a9f0e7591","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":116,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"aa94f4a8-f013-4787-88ce-1e493652acf9","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":116,"box":{"x":69,"y":771,"width":751,"height":11}},{"id":"15ff3161-0d0b-44c0-9221-b761fe3aee10","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":116,"box":{"x":70,"y":785,"width":755,"height":12}},{"id":"a8a0b44d-ef32-4765-b938-2961b6e0ca61","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":116,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"928ddc68-5cad-48f8-acfb-1d11e99d75fe","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":116,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"5b8923f8-cf71-446c-b2d6-8c39903c43ed","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":116,"box":{"x":68,"y":831,"width":766,"height":11}},{"id":"354d8932-9f53-476d-892e-a2015a5873c6","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":116,"box":{"x":69,"y":846,"width":792,"height":11}},{"id":"1ba8b6ed-26da-430c-988f-41c7d35c78fe","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":116,"box":{"x":70,"y":861,"width":821,"height":11}},{"id":"404c260e-4507-4475-b230-494c0bad73e5","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":116,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"d08357c3-ccb3-4b11-9e05-f92de552dee6","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":116,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"de64e642-6013-4068-80be-b8aa4b4fb141","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":116,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"5a59a3f1-48f1-4254-96fc-d46cc21bf236","block_type":"box","text":"II-71","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dbab5329-aa97-4d84-b59b-8e2bfe6a926b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ec24338-7785-41ce-821d-990f10a12485","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":117,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"35cc0f56-25b9-4dbf-815e-7810d1aee7cc","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":117,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"ba3659ee-ddb0-4784-a134-9efb6656060e","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":117,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"807e4b6b-1123-4a2c-a6dc-97805f8d6631","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":117,"box":{"x":68,"y":90,"width":839,"height":11}},{"id":"eaeb78e4-f1b6-4853-9096-4c4f0cbf758d","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":117,"box":{"x":68,"y":105,"width":514,"height":11}},{"id":"bfce2ef1-8c66-40df-9847-ff4932a5c8cb","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":117,"box":{"x":102,"y":128,"width":385,"height":11}},{"id":"55026a32-ae3c-4300-a459-cd74af201b28","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":117,"box":{"x":102,"y":151,"width":246,"height":11}},{"id":"aaa48f19-127c-4002-a95d-82be83216053","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":117,"box":{"x":354,"y":151,"width":548,"height":11}},{"id":"755abda5-9493-47dc-b939-412ea438cf0a","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":117,"box":{"x":68,"y":166,"width":830,"height":11}},{"id":"d0ec7823-da0a-4cc3-bde2-caa90893daf6","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":117,"box":{"x":68,"y":181,"width":793,"height":11}},{"id":"e8d47bee-54c0-4375-b7dc-a2b94b1aea99","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":117,"box":{"x":69,"y":196,"width":784,"height":11}},{"id":"dec8ba30-7d0a-45cd-abf5-a16b94332613","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":117,"box":{"x":70,"y":211,"width":591,"height":11}},{"id":"1c6811ba-59d0-4f5e-b832-d82df5770b50","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":117,"box":{"x":101,"y":234,"width":730,"height":11}},{"id":"2ecb3a2c-9c58-4c78-96b3-bd744d7bc995","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":117,"box":{"x":70,"y":249,"width":822,"height":11}},{"id":"234efbc5-6405-4392-adcd-7de19b4bbcb8","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":117,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"d47d3c80-7562-49d6-a5a3-5681ec292b9e","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":117,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"7ec867f0-a726-4916-b20f-0fbf23ec5321","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":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"c81a2cde-6e14-4c2a-b980-7ce31bcfee25","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":117,"box":{"x":69,"y":309,"width":354,"height":11}},{"id":"58bd9854-1f9a-457c-8aac-4f6b7ece5107","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":117,"box":{"x":102,"y":332,"width":769,"height":11}},{"id":"f6dd9160-194f-47ac-a6fe-443748968dc2","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":117,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"54e052f3-1353-47cc-8a4b-3457115e5b56","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":117,"box":{"x":70,"y":362,"width":782,"height":11}},{"id":"f0a7a1f3-4f0b-45ab-a981-efeba4270546","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":117,"box":{"x":69,"y":377,"width":449,"height":12}},{"id":"03465e72-a50b-4878-91da-59e717366dc3","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":117,"box":{"x":102,"y":400,"width":794,"height":11}},{"id":"875fe562-12a4-48fa-9e7c-70f66fbaacc7","block_type":"box","text":"similar financing transactions (","page_number":117,"box":{"x":69,"y":415,"width":218,"height":11}},{"id":"795937d3-d38c-4813-9cc9-890e45aebc8f","block_type":"box","text":"e.g.","page_number":117,"box":{"x":289,"y":417,"width":24,"height":9}},{"id":"15199827-5e49-4406-a847-08e2924ede36","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":117,"box":{"x":316,"y":415,"width":594,"height":11}},{"id":"0d005e4d-eee8-45a1-ab9c-af955b2c4c44","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":117,"box":{"x":68,"y":430,"width":813,"height":11}},{"id":"29809794-abfc-4683-8792-3f686e4411ab","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":117,"box":{"x":70,"y":445,"width":789,"height":12}},{"id":"b3e899ea-239e-4f8c-aa72-f401384d2859","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":117,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"409f34a7-ee2a-4397-ad8c-2ecd49873ac2","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":117,"box":{"x":70,"y":475,"width":824,"height":12}},{"id":"820a5e51-6b69-4fca-98b1-74a8fa97ee7e","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":117,"box":{"x":68,"y":491,"width":758,"height":11}},{"id":"7820fd08-4bdc-46a2-8f4e-3730daacc804","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":117,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"a2e63bf2-8d2b-417f-ba61-81880ed52d16","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":117,"box":{"x":68,"y":521,"width":838,"height":11}},{"id":"edf848d4-2cfd-49b0-b8bb-15a5f0b6d80a","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":117,"box":{"x":69,"y":536,"width":538,"height":11}},{"id":"01112a3e-871a-433e-abbf-a81c3616d80c","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":117,"box":{"x":101,"y":559,"width":780,"height":11}},{"id":"5b77767c-2c58-41fd-b11a-dc77d42b5cfe","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":117,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"4b237636-50bf-4ef7-9850-1959fda89c8f","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":117,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"cf346b31-08d2-480a-8b52-bdd35bd6e66e","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":117,"box":{"x":68,"y":604,"width":754,"height":11}},{"id":"26e7cb84-ef82-4e46-af55-d8c524780119","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":117,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"0d312f7e-bab5-4919-880a-2f336700fad9","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":117,"box":{"x":68,"y":634,"width":783,"height":12}},{"id":"682d9d39-c5fc-4248-a624-fe14ab87be80","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":117,"box":{"x":69,"y":649,"width":800,"height":12}},{"id":"7d783e1d-e9a8-4cbf-9bd1-16b548ed5280","block_type":"box","text":"amounts to be received under such agreements.","page_number":117,"box":{"x":69,"y":665,"width":345,"height":11}},{"id":"2825e4c4-8c29-4659-8456-db98a689d880","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":117,"box":{"x":102,"y":687,"width":316,"height":11}},{"id":"ec6fd75f-9311-46e4-9e6f-1dbdcf42889b","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":117,"box":{"x":424,"y":687,"width":481,"height":11}},{"id":"e768be8b-1a83-4f68-b040-73a75fafbe92","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":117,"box":{"x":68,"y":702,"width":822,"height":12}},{"id":"3dd64485-bad5-471b-b54f-e56fb94b3811","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":117,"box":{"x":69,"y":717,"width":776,"height":12}},{"id":"751ac1b6-73b9-4062-bbc1-4dd844022034","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":117,"box":{"x":69,"y":732,"width":817,"height":12}},{"id":"bfb380a6-2d07-472f-8b78-a4c140b81dae","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":117,"box":{"x":70,"y":748,"width":833,"height":11}},{"id":"c2ed6310-e56c-4a0c-96a4-3f32c2e77514","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":117,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"49b9fa36-e617-454b-bf54-51bddf2ba359","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":117,"box":{"x":70,"y":778,"width":821,"height":11}},{"id":"66f19dd9-c412-481a-9ecf-93eb7ccae7e7","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":117,"box":{"x":69,"y":793,"width":830,"height":11}},{"id":"9d35869b-f537-4711-8c22-e24b0f499353","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":117,"box":{"x":69,"y":808,"width":777,"height":11}},{"id":"43739a0f-205c-4c6c-a3c2-a4f874fe971f","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":117,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"eeaeac4d-5ae9-4326-b5cd-ea58165374b3","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":117,"box":{"x":68,"y":839,"width":708,"height":10}},{"id":"7e3e5576-bc5e-47a3-be54-939708bdeeaf","block_type":"box","text":"Rule 144A Securities.","page_number":117,"box":{"x":102,"y":861,"width":159,"height":9}},{"id":"b3b01e06-3846-4eb4-a0e1-37089e87014c","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":117,"box":{"x":266,"y":861,"width":560,"height":11}},{"id":"67e67978-3613-4992-9fc9-b58bc41e4d8d","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":117,"box":{"x":70,"y":876,"width":741,"height":11}},{"id":"0ec2a838-b4a1-479c-b9f8-c5cf003e790f","block_type":"box","text":"II-72","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2a0003ff-9232-4ee0-8631-841dde99b4ab","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7457694b-014b-4d8c-813a-6664b7437c47","block_type":"box","text":"Securities Lending.","page_number":118,"box":{"x":101,"y":45,"width":139,"height":11}},{"id":"189f5d01-17dd-4150-a4cc-d6a5dc38352f","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":118,"box":{"x":247,"y":45,"width":645,"height":11}},{"id":"4ebbe5fe-c07c-4f68-b573-505dddf2c011","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":118,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"44eacdc2-1c0c-4ca2-8f43-17d3fffc04a6","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":118,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"0a7a683e-f0d4-4739-81ba-5146603590e7","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":118,"box":{"x":69,"y":90,"width":831,"height":11}},{"id":"bf762174-8d5d-43aa-a952-64ea991363f7","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":118,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"f2039f2e-13d3-4bad-a9bb-e0b21d970837","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":118,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"8c569e7d-31d3-4a46-ba4b-e60f0d5f93cc","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":118,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"ac4d2c00-3184-405d-8e39-0bf2f3be368a","block_type":"box","text":"the securities were not on loan.","page_number":118,"box":{"x":68,"y":151,"width":225,"height":8}},{"id":"6755bc37-e607-4046-966c-3eb6533564c0","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":118,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"996b94de-15ed-44a5-9c68-3fe691cc6d31","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":118,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"03661048-e4e1-4f81-91ee-6b0027c21471","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":118,"box":{"x":69,"y":203,"width":824,"height":11}},{"id":"8a0f5211-fc61-42d3-85ab-e69ea924b7c6","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":118,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"321e9f07-833d-40c9-89f8-1ed3d8a24455","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":118,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"2fa5c811-05b2-4fd4-a931-9dfb69163d80","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":118,"box":{"x":70,"y":249,"width":789,"height":11}},{"id":"1bc3d743-a871-4165-aa2f-fb2c99a0c262","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":118,"box":{"x":70,"y":264,"width":643,"height":11}},{"id":"c1dc8223-811a-47bf-b810-23ee65628885","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":118,"box":{"x":102,"y":287,"width":568,"height":11}},{"id":"1eda28c9-77f5-4686-9bf4-e53e1af2069a","block_type":"box","text":"i.e.","page_number":118,"box":{"x":672,"y":287,"width":20,"height":9}},{"id":"5e2b9748-80f6-46d1-bcfe-98aab2e84614","block_type":"box","text":", the risk of losses resulting","page_number":118,"box":{"x":695,"y":286,"width":198,"height":12}},{"id":"3bba656b-4b4c-40c6-8b07-2876084c6c2b","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":118,"box":{"x":68,"y":302,"width":501,"height":11}},{"id":"f4de9583-5ee5-4891-956f-8ef8a211a886","block_type":"box","text":"i.e.","page_number":118,"box":{"x":571,"y":302,"width":20,"height":9}},{"id":"2a8892fc-f19d-4baa-aeeb-cbcdf5ed8f22","block_type":"box","text":", the risk of a mismatch between the return","page_number":118,"box":{"x":594,"y":302,"width":307,"height":10}},{"id":"2fb318d2-0151-403c-9e36-29f4d38e5816","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":118,"box":{"x":69,"y":317,"width":794,"height":11}},{"id":"e1707b94-9b1f-4d29-923d-f7da14b6e2b7","block_type":"box","text":"i.e.","page_number":118,"box":{"x":865,"y":317,"width":20,"height":9}},{"id":"f3d7d69d-ce6c-41be-8ebe-e25dee20c27d","block_type":"box","text":",","page_number":118,"box":{"x":888,"y":324,"width":2,"height":3}},{"id":"99e45aec-f478-46d4-9ebc-8d05412c6794","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":118,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"c94b53fd-66b7-4737-a5a4-4550b46de70b","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":118,"box":{"x":69,"y":347,"width":837,"height":11}},{"id":"1eed7f43-eb60-4be1-bb8c-2d3376a7ee05","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":118,"box":{"x":69,"y":362,"width":822,"height":11}},{"id":"c8f87f16-9844-4cdb-94a0-824b349edaab","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":118,"box":{"x":68,"y":377,"width":811,"height":12}},{"id":"fba4f19c-8ed9-4bf7-8cd4-443373b217db","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":118,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"d55b5cb6-edac-4ea7-8519-bdef87835d09","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":118,"box":{"x":69,"y":408,"width":790,"height":11}},{"id":"bdffd4f0-74ba-431c-b245-341d1bde2985","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":118,"box":{"x":70,"y":423,"width":820,"height":11}},{"id":"361f1854-b082-4aa0-8fce-29f0dea3aa5e","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":118,"box":{"x":70,"y":438,"width":805,"height":11}},{"id":"35b61e52-929a-4d32-b07e-e917e96346a9","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":118,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"4adb393a-b844-40a8-bee0-500dca633c41","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":118,"box":{"x":69,"y":468,"width":775,"height":11}},{"id":"c8214c7a-749c-47ad-bb5c-0c75a495e95a","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":118,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"c8921c11-2828-4ca6-81b1-ef2e3b890995","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":118,"box":{"x":69,"y":498,"width":838,"height":11}},{"id":"557d3328-a80c-4006-9fb9-8c573cfd800c","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":118,"box":{"x":70,"y":513,"width":837,"height":11}},{"id":"8c3bf079-9d44-40db-a3d0-117540d8a626","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":118,"box":{"x":70,"y":528,"width":808,"height":12}},{"id":"5b48609b-798b-45eb-b17d-b6eda41b25f1","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":118,"box":{"x":69,"y":543,"width":839,"height":12}},{"id":"5e98cda6-01ec-4652-a9e7-e6a9c0bacf76","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":118,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"e0ab3331-9968-40cd-be15-c0537e7bddab","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":118,"box":{"x":69,"y":574,"width":801,"height":11}},{"id":"5775e32c-1b2e-46c7-9f37-50879b264234","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":118,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"b1e4d338-fc26-4f37-a45a-7e943e9e849d","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":118,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"fef6a3e3-9403-4fb0-ad89-22d0bf4bbf78","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":118,"box":{"x":69,"y":619,"width":812,"height":11}},{"id":"8a6c52f4-af45-4d01-b27b-a82dd863ab4b","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":118,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"9a4e717f-2304-4ca5-a6cd-9a9c7c8bc1db","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":118,"box":{"x":68,"y":649,"width":787,"height":12}},{"id":"18e743d1-f1f1-4cbd-8936-15453fd015d0","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":118,"box":{"x":69,"y":665,"width":828,"height":11}},{"id":"9c4dcae1-8ed1-411a-8ff1-3724bcf5e498","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":118,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"43526279-5071-422e-a9d9-c98168ead759","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":118,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"b8173869-6e42-4b15-b9a2-4b0f00d8fefa","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":118,"box":{"x":69,"y":710,"width":731,"height":11}},{"id":"5a653b24-0894-408c-9eb0-d86c4a0aa32c","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":118,"box":{"x":102,"y":732,"width":800,"height":12}},{"id":"f0bf35be-bdeb-4d8c-81f2-7b7e761dcf84","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":118,"box":{"x":68,"y":748,"width":802,"height":11}},{"id":"7032e9d1-5e01-4a98-977b-274689a4410d","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":118,"box":{"x":69,"y":763,"width":783,"height":11}},{"id":"f4de0c58-37c7-46e6-af13-e88b27e69208","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":118,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"ca09ddd1-7946-430f-b82b-0da23ef6f3d7","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":118,"box":{"x":70,"y":793,"width":747,"height":11}},{"id":"4a807e32-ce13-4f06-b897-a8c0430210fc","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":118,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"cc5f4b50-f400-423b-996b-693362132775","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":118,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"ba611a70-c640-4d48-9fa2-da5150496866","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":118,"box":{"x":69,"y":838,"width":839,"height":12}},{"id":"958c4c8e-3ad2-4695-b63f-e03f40d09ac2","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":118,"box":{"x":69,"y":853,"width":827,"height":11}},{"id":"cb9cb0b1-714c-478a-87a6-0b355bd6d6da","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":118,"box":{"x":69,"y":869,"width":794,"height":11}},{"id":"212bf92f-64f8-4205-8236-98d5ff0a2475","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":118,"box":{"x":69,"y":884,"width":371,"height":11}},{"id":"601fce8f-899f-48ce-94f2-2a89f5578b64","block_type":"box","text":"II-73","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bbedec31-0029-4904-bd34-6b889bf07a0f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e65941e-4cda-4a49-a0cd-8184eab88b11","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":119,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"a99ee5f0-36ed-404d-b958-e7c9da227b29","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":119,"box":{"x":70,"y":60,"width":808,"height":11}},{"id":"65eb4699-8399-4856-9ca9-0f6c19bcf647","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":119,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"bd5110bd-de19-4ea6-b655-d8f9d39b40af","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":119,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"9aff5807-6bd8-4905-a003-3fab8c5b9d1d","block_type":"box","text":"the current expected compliance date.","page_number":119,"box":{"x":68,"y":105,"width":273,"height":11}},{"id":"16777ee2-4476-490c-b7e0-df686accdc97","block_type":"box","text":"Short Sales.","page_number":119,"box":{"x":101,"y":128,"width":89,"height":9}},{"id":"683a8d25-6521-439b-b6d9-7f4ff3b313e4","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":119,"box":{"x":196,"y":128,"width":696,"height":11}},{"id":"0c16a01a-c654-497c-ba65-75699efcaf20","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":119,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"7f867421-c850-4a1e-951f-d1d5c433f00a","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":119,"box":{"x":69,"y":158,"width":778,"height":11}},{"id":"62e3490b-2af8-4a61-b839-a0729e974956","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":119,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"4836b0df-475b-495d-b72a-34fbb60ee782","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":119,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"b5cbf07d-f030-4778-8a83-cfa66bfb1cd3","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":119,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"1bd670bc-6830-4235-b896-a0667c5cd7bc","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":119,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"3ea990f9-42cf-4f84-bf73-4ff84400e5ad","block_type":"box","text":"securities to the lender of the securities.","page_number":119,"box":{"x":69,"y":234,"width":289,"height":9}},{"id":"c21d1cb1-84f1-4daa-b403-65ee06cd818f","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":119,"box":{"x":101,"y":257,"width":772,"height":11}},{"id":"ad924d88-0dd8-43cf-be68-e6dc71cf3b78","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":119,"box":{"x":69,"y":272,"width":795,"height":11}},{"id":"01b0788c-c4a1-410d-840f-fb03f8a27352","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":119,"box":{"x":69,"y":286,"width":801,"height":12}},{"id":"1182f4ad-7341-47fc-8ff1-33f225981fc7","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":119,"box":{"x":69,"y":302,"width":830,"height":11}},{"id":"17d1713d-c769-4d6e-b372-b3e56215ede9","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":119,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"440585a4-180a-4f8d-a233-53c7f2f482bc","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":119,"box":{"x":69,"y":332,"width":770,"height":11}},{"id":"8b6554f4-b597-4738-91a3-149acf734f41","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":119,"box":{"x":70,"y":347,"width":568,"height":11}},{"id":"a48da928-97af-4feb-8953-da5b6a209cc2","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":119,"box":{"x":102,"y":370,"width":806,"height":11}},{"id":"857f1d3c-1dc9-485d-b9d9-e0bb581fa3da","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":119,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"6d2ee2b3-72f9-4a8a-87cb-62d5a86c41e9","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":119,"box":{"x":68,"y":400,"width":819,"height":11}},{"id":"8d816bc8-225e-40d0-bf95-b1db8cb9322a","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":119,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"a075ab71-e460-451d-9169-51d4a16f9b1e","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":119,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"5cff5173-3e8c-4c63-a7d9-b94dfa3411fb","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":119,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"54d7eb2a-558c-457b-9262-39d5bab15a7c","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":119,"box":{"x":69,"y":461,"width":818,"height":11}},{"id":"1bd48cdc-7335-4448-b225-643420f09d18","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":119,"box":{"x":68,"y":475,"width":821,"height":12}},{"id":"06bcd96d-8b20-49e9-a1fd-5e194c4692a2","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":119,"box":{"x":69,"y":491,"width":640,"height":11}},{"id":"3c2e791f-24aa-4825-a8a0-3fe959759145","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":119,"box":{"x":101,"y":514,"width":673,"height":11}},{"id":"8fd7d1df-b8a2-4397-aeec-e079ca9b55c9","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":119,"box":{"x":101,"y":536,"width":721,"height":11}},{"id":"8d1be9d0-3700-4629-b1bf-9e02b926c3c0","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":119,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"c831cb80-d4fc-40e5-8010-825160381be3","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":119,"box":{"x":70,"y":566,"width":489,"height":11}},{"id":"93a4bde4-5d55-416c-a1e9-454849cf5a60","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":119,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"140398c0-67cc-436f-962a-60a388a977b7","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":119,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"4c5e7b61-6bf9-459b-bd18-757fb7575606","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":119,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"3d69027e-42be-4a38-bf7f-f18c9bb224eb","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":119,"box":{"x":70,"y":634,"width":766,"height":12}},{"id":"5d4f8941-0e6a-423e-a4bb-78349eb48be4","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":119,"box":{"x":70,"y":649,"width":754,"height":12}},{"id":"a4c424a5-eb79-4611-b77f-0c0ed3bad8bb","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":119,"box":{"x":67,"y":664,"width":800,"height":12}},{"id":"227dfae5-0716-4351-8389-53ef3d8de9c3","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":119,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"847ee166-37df-4fce-aabe-bd90b19bc37c","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":119,"box":{"x":69,"y":695,"width":782,"height":11}},{"id":"e6f17204-223e-4574-a612-79de2849b0fc","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":119,"box":{"x":69,"y":710,"width":460,"height":11}},{"id":"1d55a911-008a-4103-aca6-1504a0d375b5","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":119,"box":{"x":101,"y":733,"width":293,"height":11}},{"id":"821205ce-5373-47d8-8bc5-ce2fe7e96ed2","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":119,"box":{"x":400,"y":733,"width":504,"height":11}},{"id":"6bbc9899-c1e6-449b-888b-8c18f2411457","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":119,"box":{"x":69,"y":748,"width":791,"height":11}},{"id":"297f9a57-031e-4e25-914e-3cf04bda0dd3","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":119,"box":{"x":70,"y":763,"width":793,"height":11}},{"id":"f7a644da-e4ea-44df-8f6d-1e421337ebb6","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":119,"box":{"x":70,"y":778,"width":824,"height":11}},{"id":"cb6cabd4-9e3c-41e4-8719-39917e59b941","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":119,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"a9ebae63-d536-4dc8-b981-1b8b49b33858","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":119,"box":{"x":69,"y":808,"width":768,"height":11}},{"id":"3d4fd001-e595-4dfc-9fc1-6459bdb34733","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":119,"box":{"x":70,"y":823,"width":826,"height":12}},{"id":"6d228b6c-5c25-4e19-9d67-1372a5a8dfb1","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":119,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"0269472f-b457-42f5-9667-db82f8fc08f3","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":119,"box":{"x":70,"y":854,"width":797,"height":11}},{"id":"8a15e4f6-d82d-4f12-9bf0-dd80070c3f04","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":119,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"5594b47b-8a93-4718-8f45-f46122df9311","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":119,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"f14af7a0-3a13-4503-b508-7a9ca3db04d3","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":119,"box":{"x":68,"y":899,"width":794,"height":11}},{"id":"c6798a7a-8812-4143-bdea-d7f131d0b1c9","block_type":"box","text":"II-74","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"06dce85e-0192-4726-93a1-51d6070a3dc4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4d7a8c9-8298-43c8-b65d-978788866631","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":120,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"c891563b-3550-406e-9266-81d253052b3f","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":120,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"3cff7279-d20a-45bf-b596-c39f1b7b78f9","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":120,"box":{"x":70,"y":75,"width":802,"height":11}},{"id":"79a498fd-f301-4abe-8609-2a5b2ec0bb9a","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":120,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"e85bbc35-26cb-4644-88fe-a8b525240ca4","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":120,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"54309698-8803-4c68-bbbe-13ecda642b61","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":120,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"ea0204bb-7808-47a0-a8eb-d316467a134a","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":120,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"af632f0a-bc56-4bcc-b1c0-246c2ec61cb8","block_type":"box","text":"Standby Commitment Agreements.","page_number":120,"box":{"x":101,"y":158,"width":255,"height":11}},{"id":"ec3f93cf-ab1c-4194-8b3e-21b149efc675","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":120,"box":{"x":362,"y":158,"width":511,"height":11}},{"id":"e4d1d3d0-3f9a-4daf-b99c-2461e55192f3","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":120,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"8dc373d0-bee6-4c1a-96d8-0185186d35e4","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":120,"box":{"x":68,"y":188,"width":834,"height":12}},{"id":"50ed2907-d495-4066-b5bb-2c94be7d3387","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":120,"box":{"x":70,"y":203,"width":802,"height":12}},{"id":"45f03e9c-60ec-4cde-ad9c-fef631ade3ee","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":120,"box":{"x":69,"y":218,"width":793,"height":12}},{"id":"46b675f0-686a-44f9-8382-f1de696fc2f5","block_type":"box","text":"advantageous to the Fund.","page_number":120,"box":{"x":69,"y":234,"width":188,"height":11}},{"id":"b23fb211-50a9-4fe4-997f-bf9c12d59b76","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":120,"box":{"x":101,"y":256,"width":800,"height":11}},{"id":"d4431fb5-f445-4831-98b7-83b27e4d556a","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":120,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"98090dbc-8772-40b9-b055-fc6ac9b42ac7","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":120,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"f417eb43-8648-4a61-b460-21b3633186ec","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":120,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"c96e5dc5-a6ed-47ea-a097-c7be8e7bc28d","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":120,"box":{"x":101,"y":324,"width":785,"height":12}},{"id":"76ab7d56-5f54-4bbe-b3e0-9864a4b21ad3","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":120,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"3b82085f-3712-4520-871f-d1c1c7af9aaf","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":120,"box":{"x":68,"y":355,"width":815,"height":11}},{"id":"06646556-9fcd-4b15-bf12-fb1d2c9f7f45","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":120,"box":{"x":69,"y":370,"width":792,"height":11}},{"id":"7a7a2e7f-2c6f-436e-824d-23c14a364371","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":120,"box":{"x":70,"y":385,"width":415,"height":11}},{"id":"b90cd866-eb3f-4531-9740-beee92ecec10","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":120,"box":{"x":102,"y":408,"width":789,"height":11}},{"id":"262db546-1ba1-4027-9385-71abc5dbbb98","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":120,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"e7532d69-4064-415d-af06-baeca70e6917","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":120,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"a4dc0a7c-9186-4faa-b605-84d9d9dc9e31","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":120,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"7a9dc1e2-fc56-4a5e-8d10-f2d1eaf22edf","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":120,"box":{"x":68,"y":468,"width":817,"height":11}},{"id":"ba851263-ed20-485c-a373-3509db37f39b","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":120,"box":{"x":69,"y":483,"width":578,"height":11}},{"id":"8da6ea98-6caa-4a13-9eab-1052ad34e116","block_type":"box","text":"Stripped Securities.","page_number":120,"box":{"x":101,"y":506,"width":143,"height":11}},{"id":"668bc268-0ec8-4c39-b1f6-5da219513606","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":120,"box":{"x":251,"y":506,"width":596,"height":11}},{"id":"d488bc54-e5da-49ea-bef9-eb51cd629e0d","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":120,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"b31ab21e-07d7-4cbf-bd3a-55435df09091","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":120,"box":{"x":70,"y":536,"width":818,"height":11}},{"id":"f17ec82c-b1ab-44a7-ae80-6ccedfb19542","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":120,"box":{"x":70,"y":551,"width":813,"height":11}},{"id":"26d45104-c936-4dad-948e-c0ec6a98ab4d","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":120,"box":{"x":70,"y":566,"width":777,"height":11}},{"id":"7f520a0f-98be-4a0c-853f-5afedaa7420a","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":120,"box":{"x":70,"y":582,"width":802,"height":11}},{"id":"3f25be5c-eba5-4dc0-8f45-42fb98a8bd25","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":120,"box":{"x":69,"y":596,"width":794,"height":12}},{"id":"00219102-cc48-4d3e-988f-574cc638693f","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":120,"box":{"x":70,"y":612,"width":837,"height":11}},{"id":"f39c8c40-4cf5-4afe-acbb-ee4d58ccdf8d","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":120,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"25a7589c-bc5f-48f3-a90b-ab689340e4c9","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":120,"box":{"x":69,"y":642,"width":494,"height":11}},{"id":"7e4e0d32-c295-470b-8211-6fc1f8dadcd0","block_type":"box","text":"Structured Notes.","page_number":120,"box":{"x":101,"y":665,"width":130,"height":8}},{"id":"40da6faa-f583-4f76-bc11-786e6e6a7d2d","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":120,"box":{"x":237,"y":665,"width":650,"height":11}},{"id":"52ceb091-09f8-4402-ae68-27b58c517653","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":120,"box":{"x":69,"y":680,"width":818,"height":11}},{"id":"cddafd08-fcce-4627-a4e2-988d62510c7c","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":120,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"b6cef558-c9d7-4844-945c-7f57b1ced999","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":120,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"a789f508-7bd7-4c3d-b312-0e9b7f6b09ca","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":120,"box":{"x":70,"y":725,"width":839,"height":11}},{"id":"ea26fcf7-6a8c-4c93-985a-9750731aa9bf","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":120,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"70aa2da4-07c0-4518-afe3-00a737749b1a","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":120,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"19a9db9b-4e19-4230-b57f-b7c8141d18d5","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":120,"box":{"x":68,"y":770,"width":673,"height":12}},{"id":"eff24f2b-9f3a-47cf-96e6-8db1eea95acc","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":120,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"3caa304d-bf23-4889-8f77-4327703379c7","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":120,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"40c0e053-f7f9-4349-9345-7068dc589460","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":120,"box":{"x":69,"y":823,"width":787,"height":12}},{"id":"b3cc25c4-e74f-409a-8651-4678c826902c","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":120,"box":{"x":69,"y":838,"width":827,"height":12}},{"id":"a333ae4b-74a8-435d-b99e-d68e06db8510","block_type":"box","text":"the risk of loss.","page_number":120,"box":{"x":68,"y":853,"width":110,"height":9}},{"id":"3824d4fb-e9ed-4f48-b0cb-c0c361211b05","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":120,"box":{"x":101,"y":876,"width":759,"height":11}},{"id":"4b0c4224-774b-42ad-b3fa-c96f7c54ce67","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":120,"box":{"x":69,"y":891,"width":795,"height":11}},{"id":"51353fe5-a51d-48b3-b369-dc844298c54d","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":120,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"8169493d-d583-4c50-ac29-7a39b790fd70","block_type":"box","text":"II-75","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4fb186b9-2664-416e-98da-232a60daa9ae","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61dded96-ead2-48e2-9b5c-1b358e4f2e85","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":121,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"1121e135-72f0-4212-b6eb-17ddafd0f9c6","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":121,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"ef246862-5bc8-4d1c-8dee-ddaafbb40814","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":121,"box":{"x":70,"y":75,"width":618,"height":11}},{"id":"5d522613-ee8a-41d9-8b28-d24a3d31696e","block_type":"box","text":"Taxability Risk.","page_number":121,"box":{"x":103,"y":98,"width":109,"height":11}},{"id":"609e989d-b387-4d3d-8321-b08e0dfbf33f","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":121,"box":{"x":218,"y":98,"width":644,"height":11}},{"id":"b0fa962d-1fd8-4f0f-897b-b5937a88aa8f","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":121,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"e9389b1a-0b63-47d6-8890-9ac5afc99893","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":121,"box":{"x":68,"y":128,"width":827,"height":11}},{"id":"a135525c-5f37-4e00-a783-b315c6480f6b","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":121,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"185579b5-9814-43aa-ad9e-fce5ff404c66","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":121,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"bc89a824-dfa4-4e8a-9f91-17a36f6c8c21","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":121,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"3d06a3a2-188d-4c66-af71-6fb36d0c850d","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":121,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"5a617676-993c-4628-a402-1e02090986b0","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":121,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"2d7464e2-cb3e-4d13-8aae-d492cc5b088b","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":121,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"6cca6582-2cf9-4d4f-afcf-988687f326bd","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":121,"box":{"x":70,"y":234,"width":771,"height":11}},{"id":"6301f47a-91b1-4918-8946-aed4bc42085b","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":121,"box":{"x":70,"y":249,"width":765,"height":11}},{"id":"fb42cfa6-b5e7-4f9e-bc8b-a3ae70eefdf7","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":121,"box":{"x":69,"y":264,"width":834,"height":11}},{"id":"a11e6e82-c194-4e2e-b3cc-7f6f9d536970","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":121,"box":{"x":68,"y":279,"width":807,"height":11}},{"id":"66e10756-44ef-49c4-9af6-d768cabafe03","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":121,"box":{"x":70,"y":294,"width":830,"height":11}},{"id":"e7d4eeb0-457e-47cb-b7e6-4e362b309e71","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":121,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"859acbfa-a67c-475b-b9a8-34abded7d0bb","block_type":"box","text":"the value of an investment in the Fund.","page_number":121,"box":{"x":68,"y":324,"width":278,"height":9}},{"id":"8d7de65c-a8c7-4af3-90f1-64e5eb4a20cf","block_type":"box","text":"Temporary Defensive Measures.","page_number":121,"box":{"x":103,"y":347,"width":230,"height":11}},{"id":"c5f2dc6d-5a7c-4833-aaa6-00c241ce9255","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":121,"box":{"x":339,"y":347,"width":542,"height":11}},{"id":"40692fe8-7260-4806-9de3-683c2087fa9a","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":121,"box":{"x":69,"y":362,"width":811,"height":11}},{"id":"37f63a6c-d958-41af-bfe6-eaa354634d5d","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":121,"box":{"x":68,"y":377,"width":813,"height":12}},{"id":"d3c1cd83-bdf3-4f1b-9538-7782db2163c5","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":121,"box":{"x":69,"y":393,"width":833,"height":11}},{"id":"122791a3-ed4c-4070-be3b-8bc3c3c441a2","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":121,"box":{"x":70,"y":408,"width":813,"height":11}},{"id":"c56d9358-d2fd-4609-91da-164c243e6a45","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":121,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"c2b5c244-d76f-4244-afd8-23137861db4a","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":121,"box":{"x":68,"y":438,"width":806,"height":11}},{"id":"1cb1bfc0-ef32-4b20-8e28-2a3e87d6f4f3","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":121,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"ca60f837-b33a-43f2-bcb6-b03d09e2d1a3","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":121,"box":{"x":68,"y":468,"width":820,"height":11}},{"id":"ec3e0da2-0c69-4b16-999e-d25a55086b17","block_type":"box","text":"its investment objective.","page_number":121,"box":{"x":70,"y":483,"width":171,"height":11}},{"id":"529a1e40-f75e-45bd-a02b-868e4f18f50b","block_type":"box","text":"U.S. Government Obligations.","page_number":121,"box":{"x":102,"y":506,"width":213,"height":11}},{"id":"d1d29bf9-f956-46be-99e4-8672b18ee325","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":121,"box":{"x":321,"y":506,"width":566,"height":11}},{"id":"f5ca9256-7563-486a-8796-33efccebf29e","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":121,"box":{"x":69,"y":521,"width":810,"height":11}},{"id":"e336d17a-ff1b-44f8-bfd5-5d7f9fc6249a","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":121,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"e2f135ea-cac4-4dff-95b5-2cd7ccd07ab4","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":121,"box":{"x":68,"y":551,"width":779,"height":11}},{"id":"97466eba-1540-4ad5-9760-4d000f145c4b","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":121,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"2fde0317-9fa2-4a41-8cd8-b319fdef650a","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":121,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"6402e3f8-8fc3-4b4c-9871-7476bbcf258a","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":121,"box":{"x":69,"y":596,"width":809,"height":12}},{"id":"27c10716-57ba-40d2-a357-15339fcfbf05","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":121,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"e1725d26-2185-4965-ad09-ed9772a295eb","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":121,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"c710f2f3-4e17-4cc3-a5ac-30c8b713e0d4","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":121,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"293f54b3-d162-465c-a985-c7bf96937f79","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":121,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"d26c9a31-4756-49f9-a8d1-7d6d88b3f4ce","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":121,"box":{"x":69,"y":672,"width":716,"height":11}},{"id":"2b433eff-0a89-414c-9c31-b7744f99a1af","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":121,"box":{"x":102,"y":695,"width":800,"height":11}},{"id":"ceba741d-7e9b-4d22-b49f-18e972c37dae","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":121,"box":{"x":68,"y":710,"width":785,"height":11}},{"id":"df5924db-538d-4f32-b9c4-ef18cfb2c1c6","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":121,"box":{"x":68,"y":725,"width":813,"height":11}},{"id":"1109da0a-2042-4db4-8848-de627231cd8e","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":121,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"ce7783ac-fd70-4093-95ca-876845140328","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":121,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"a1fac41d-0d67-45f4-a140-d00251833d6c","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":121,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"de5300f9-8f5c-41b8-a738-8673f18d7374","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":121,"box":{"x":70,"y":786,"width":777,"height":11}},{"id":"7da8e19a-f358-46cb-b8a9-0c6f1d717e8f","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":121,"box":{"x":70,"y":801,"width":749,"height":11}},{"id":"48cb5026-f41a-426f-a7f1-5e6264db7f34","block_type":"box","text":"U.S. Treasury Obligations.","page_number":121,"box":{"x":103,"y":823,"width":183,"height":12}},{"id":"8228882b-5c89-46a6-8a8b-1bb800e79f7b","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":121,"box":{"x":292,"y":823,"width":593,"height":12}},{"id":"e283ed35-4ca0-40d9-a018-cbd65ea5a1e3","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":121,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"8a9a5f98-d77b-4bd3-b47a-9c09369f83ef","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":121,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"a8811814-bd28-46df-adb1-0df34e348168","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":121,"box":{"x":68,"y":869,"width":823,"height":11}},{"id":"70c749ee-ac4a-4ebb-93db-73a9f43002b3","block_type":"box","text":"do so.","page_number":121,"box":{"x":69,"y":884,"width":42,"height":9}},{"id":"6179045d-7240-4e4f-9026-75fccd110792","block_type":"box","text":"II-76","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"33ef3ffd-efc8-4c3d-8378-a6565bfd6d09","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0e3b1c4-71cc-4090-b12c-21ae4fc03cee","block_type":"box","text":"U.S. Treasury Rolls","page_number":122,"box":{"x":102,"y":45,"width":139,"height":11}},{"id":"af7271b3-b783-4225-8e47-eb3865be6ffb","block_type":"box","text":".","page_number":122,"box":{"x":241,"y":52,"width":3,"height":2}},{"id":"3d4a6aac-1c12-4a09-8415-b0495ece5c80","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":122,"box":{"x":250,"y":45,"width":656,"height":11}},{"id":"ac2cd666-ab26-42f0-9f97-9259ff2322f1","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":122,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"50a0adac-558b-4f69-81e2-e74490be8c2a","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":122,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"60fbbcdb-083e-4fd6-8c93-c67ffefe0723","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":122,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"2b7db288-914e-489f-8b52-037d217e589d","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":122,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"3cc1512c-24dc-4527-b780-a48505c73316","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":122,"box":{"x":69,"y":120,"width":775,"height":12}},{"id":"7a1ed71b-081f-45de-9df1-5c775c1cadc2","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":122,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"bf7f3023-a191-47fe-9def-067b6a1d16d6","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":122,"box":{"x":68,"y":150,"width":657,"height":12}},{"id":"8948ca8d-bcc0-4d23-9ed3-59d4b2982cde","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":122,"box":{"x":101,"y":173,"width":756,"height":11}},{"id":"10c5c0ba-3774-4db6-b500-8b8134966771","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":122,"box":{"x":70,"y":188,"width":800,"height":11}},{"id":"9b2438fb-7b4b-44d8-8f8e-9973931bb8c9","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":122,"box":{"x":70,"y":203,"width":617,"height":12}},{"id":"27cfe394-b052-4175-86f7-f83205bb98f7","block_type":"box","text":"Utility Industries.","page_number":122,"box":{"x":102,"y":226,"width":124,"height":11}},{"id":"b4720246-10b5-43d3-af0e-82de6a140945","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":122,"box":{"x":233,"y":226,"width":674,"height":11}},{"id":"52b7def1-ea9e-4e3b-97b3-200efd10c0f6","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":122,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"21bda9d1-bfb5-4a85-bf3c-e0ad73d85e1e","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":122,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"7db7a2b2-3b70-45cf-a6b9-379de0805bbd","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":122,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"1f589632-1a56-4874-a473-cd8cfecf4325","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":122,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"20797e76-eeb8-4073-a159-0b749373b58d","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":122,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"5ed0145f-2f00-431e-aad0-bd434302590a","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":122,"box":{"x":69,"y":317,"width":795,"height":11}},{"id":"cde36fdd-a551-423b-bc59-408f632d7876","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":122,"box":{"x":69,"y":332,"width":774,"height":11}},{"id":"57c6837f-1e22-4d55-a127-3e2e7c1849dd","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":122,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"fe2a48af-3ecb-4906-9764-20cba476ffae","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":122,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"d9e941fe-118d-4111-9a30-c42240a7b320","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":122,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"6033cb2b-0a5e-47e9-bd95-90eeafd2dfab","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":122,"box":{"x":69,"y":392,"width":761,"height":12}},{"id":"edc71400-e1b2-403c-a598-6e8435baf4d9","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":122,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"2fbfd0d5-300b-46f2-ab46-c25d4f82c5db","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":122,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"919d8101-1346-419a-8c7c-07844988903e","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":122,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"535f914c-21e6-48d7-8917-f61a8afe318a","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":122,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"e54d1854-d3a6-4a04-afdd-456e0e62e235","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":122,"box":{"x":68,"y":468,"width":778,"height":11}},{"id":"a3125eb4-355b-42c1-93f4-575a41181557","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":122,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"fd01fcf3-4583-44ad-bc56-4610b9799f6b","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":122,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"62e3fbe4-e4ed-473f-83c7-188b171526d2","block_type":"box","text":"utility.","page_number":122,"box":{"x":69,"y":514,"width":39,"height":10}},{"id":"064d0442-0600-41bd-9024-6723eda5f670","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":122,"box":{"x":102,"y":536,"width":744,"height":11}},{"id":"6e694751-fdbf-4e5b-8454-20fa92654d6e","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":122,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"7f812ea8-bb31-4578-a038-068932d912e6","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":122,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"7e9b3823-090f-4a5f-a677-42c44167c1c0","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":122,"box":{"x":70,"y":581,"width":464,"height":11}},{"id":"c02a0cfa-0916-4646-bc23-1e04d749453b","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":122,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"1f22aab3-e7d3-4e0b-9d97-1d88be906a6e","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":122,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"c42ef198-2eea-437f-a9eb-be8410eabdc4","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":122,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"8ad6f0fd-610a-4228-b4bd-6629a7aeb5a3","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":122,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"b3e5cb14-3274-41a3-b308-5b138caeca37","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":122,"box":{"x":68,"y":664,"width":781,"height":12}},{"id":"2dc30177-3360-48a1-ae59-ae9a58d48a29","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":122,"box":{"x":69,"y":680,"width":826,"height":11}},{"id":"8bd810e4-291e-4b58-95d2-320390247dc2","block_type":"box","text":"continue in the future.","page_number":122,"box":{"x":69,"y":695,"width":156,"height":9}},{"id":"dfc9b140-95fd-4f72-8df5-79f5cc84c112","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":122,"box":{"x":101,"y":717,"width":763,"height":12}},{"id":"db77fa0d-7254-48b0-8b83-fbe8cab6fab7","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":122,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"bc5a5d60-a8b5-4691-bfd2-ac038a268ad3","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":122,"box":{"x":70,"y":748,"width":834,"height":11}},{"id":"dc6eeb32-9545-46a9-af85-d69e15ea025f","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":122,"box":{"x":69,"y":763,"width":784,"height":11}},{"id":"3dbd6911-2006-4526-ad61-faccafab512c","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":122,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"dc23dca0-3d56-4597-a348-c469f1be2077","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":122,"box":{"x":68,"y":793,"width":809,"height":11}},{"id":"9e5394da-2254-4151-af8d-ef403358b2b6","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":122,"box":{"x":69,"y":808,"width":834,"height":11}},{"id":"816c6a42-76b3-40b1-ab0a-87d0a12380e1","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":122,"box":{"x":69,"y":823,"width":825,"height":12}},{"id":"8a4e9739-ea30-419d-8fbc-e8df45200f04","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":122,"box":{"x":68,"y":838,"width":840,"height":11}},{"id":"45add944-e799-4ad9-a1ce-96ff41b546e5","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":122,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"a0b7a4a9-e208-4506-b773-d35221388853","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":122,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"f831d6cd-4d0f-4f25-9b45-d9504fa40626","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":122,"box":{"x":68,"y":884,"width":831,"height":11}},{"id":"068374b2-c0da-4fc8-b0f0-4848ee245a36","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":122,"box":{"x":69,"y":899,"width":812,"height":11}},{"id":"58700ed5-7464-44f5-85af-a07b6a8c1352","block_type":"box","text":"II-77","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9c74c523-6b80-4ce3-8d02-0424f737c441","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a55013b-bead-46df-857e-a5b1990168b1","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":123,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"eec0b4e4-2801-4d0f-a942-d434da2a5220","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":123,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"39b316b2-8649-42d1-af30-78d88053a68d","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":123,"box":{"x":102,"y":83,"width":720,"height":11}},{"id":"7ff84b60-a11c-42da-9b6c-966c33d9cc60","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":123,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"c773849a-7f21-4f4c-aa60-6c82fe4a001a","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":123,"box":{"x":68,"y":113,"width":762,"height":11}},{"id":"b378732c-5149-490f-ac41-999dffdf37b2","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":123,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"1605d138-443c-40cb-974e-116c390fd9c0","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":123,"box":{"x":68,"y":143,"width":801,"height":11}},{"id":"b7c15125-f888-4ddd-8b71-998b9ddf3e9c","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":123,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"030c97dd-47f3-4f2a-969d-7357c4a29187","block_type":"box","text":"ways different from regulation in the United States.","page_number":123,"box":{"x":68,"y":173,"width":365,"height":11}},{"id":"808757ad-ce05-41c2-9fbc-0bb560f27d7a","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":123,"box":{"x":101,"y":196,"width":745,"height":11}},{"id":"10bafc34-4a0e-4073-a948-edca1f3e25c6","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":123,"box":{"x":68,"y":211,"width":790,"height":11}},{"id":"237cdd30-b674-4b2b-81bb-45a0ffec9f1b","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":123,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"4588e003-001e-4177-9f14-ed868fe8399f","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":123,"box":{"x":69,"y":241,"width":810,"height":11}},{"id":"540a8993-297d-456d-9742-84a2aecbfea7","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":123,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"028f5604-5a9d-4b7e-acd7-ea91566466ec","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":123,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"205e83e5-9ec0-4d35-8cb4-9b664d49e365","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":123,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"9a9d76c5-00cb-421e-ae45-d743232bafb5","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":123,"box":{"x":69,"y":302,"width":786,"height":11}},{"id":"5f543b23-d01b-4462-89e4-1ae511cf9f38","block_type":"box","text":"increase.","page_number":123,"box":{"x":70,"y":317,"width":63,"height":9}},{"id":"6ca4043a-705d-4062-ba48-e0ddda74350e","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":123,"box":{"x":101,"y":339,"width":793,"height":12}},{"id":"0194728f-8705-44f3-9691-7b76cb1c6a4c","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":123,"box":{"x":70,"y":355,"width":821,"height":11}},{"id":"77cc0c9e-a273-45ff-829c-ee84cc5810cc","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":123,"box":{"x":69,"y":370,"width":619,"height":11}},{"id":"d6a18d50-8405-4676-ab6e-837b86b95332","block_type":"box","text":"Electric.","page_number":123,"box":{"x":102,"y":393,"width":54,"height":8}},{"id":"a720c93c-15b4-4a1f-a3ae-a4d324e51dab","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":123,"box":{"x":163,"y":392,"width":684,"height":12}},{"id":"0923a254-9b11-4ad5-a07c-647b10b1914f","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":123,"box":{"x":68,"y":407,"width":793,"height":12}},{"id":"3f35873d-9bb2-48d8-8322-e1748be0721d","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":123,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"e690e27b-ebdf-41d3-8a91-9bae5717a112","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":123,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"7b48f8cd-a117-45bb-a712-3820d8add30d","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":123,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"d372df00-46b4-4870-87d9-fef39fb53e6c","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":123,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"b488077f-c409-437c-9370-238a668b9678","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":123,"box":{"x":68,"y":483,"width":803,"height":11}},{"id":"58a9d2bd-d2a5-4565-ae6e-a130a9f89584","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":123,"box":{"x":70,"y":498,"width":778,"height":11}},{"id":"cef8a939-fbba-4a0c-83a7-f2a1af4eb663","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":123,"box":{"x":70,"y":513,"width":836,"height":12}},{"id":"09644d57-52bc-4350-bf36-882cb74f7179","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":123,"box":{"x":69,"y":528,"width":793,"height":12}},{"id":"2e12af34-97e6-472e-b7d1-fedb47094772","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":123,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"ea1a0cb5-3910-4dc1-aa57-09712e835c51","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":123,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"b2eeee24-4d31-42fb-8e69-0914d5ee21de","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":123,"box":{"x":69,"y":574,"width":775,"height":11}},{"id":"07699f3d-0037-4bd5-8e03-6958a29d8810","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":123,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"a66e8713-1842-460f-b402-4de7549fb371","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":123,"box":{"x":70,"y":604,"width":826,"height":11}},{"id":"922e24a2-3501-4430-851b-757ee8e8ff93","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":123,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"e25fdc40-c61f-4583-bf72-c0e9982bfceb","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":123,"box":{"x":69,"y":634,"width":836,"height":11}},{"id":"317c40a3-85cb-42df-93bc-b72f3dfa0835","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":123,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"18727877-ebc5-41ee-a218-3f04c230ea17","block_type":"box","text":"and for decommissioning such plants.","page_number":123,"box":{"x":69,"y":664,"width":270,"height":12}},{"id":"dccc54fb-5216-4992-92ec-122eddabe915","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":123,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"152bc0ae-8477-4b22-acd6-bb745938a05c","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":123,"box":{"x":70,"y":702,"width":802,"height":12}},{"id":"d79ae86a-0d37-4733-986b-bb7f02415b47","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":123,"box":{"x":69,"y":717,"width":791,"height":12}},{"id":"704604b7-f205-4dac-a5c3-fabd26185d4c","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":123,"box":{"x":69,"y":732,"width":839,"height":12}},{"id":"df094ae9-2422-4e1b-ade0-a832e4951b1a","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":123,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"354223ea-8718-47d8-8c3e-12e9c919a0b9","block_type":"box","text":"greater predictability of cash flow.","page_number":123,"box":{"x":68,"y":763,"width":239,"height":11}},{"id":"c6064dae-dce5-4d42-8584-ea3340ca1657","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":123,"box":{"x":101,"y":785,"width":801,"height":12}},{"id":"a9950c7c-fa76-4d66-819f-44469dbf737e","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":123,"box":{"x":68,"y":801,"width":821,"height":11}},{"id":"a937b08a-fd49-4c9f-b9a0-4da431c62629","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":123,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"21533163-ee65-48ee-a7e5-58d8b0319da2","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":123,"box":{"x":68,"y":831,"width":815,"height":11}},{"id":"bf4fae46-f051-44bb-a75d-588a1fce3561","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":123,"box":{"x":68,"y":846,"width":803,"height":11}},{"id":"d3b0d8ef-6534-405f-9d22-4cb656925be2","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":123,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"6b18caa0-cb28-4921-b169-b5fbd8105ab3","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":123,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"b9786e70-0d57-4952-b8ca-191b2cbc2545","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":123,"box":{"x":68,"y":891,"width":835,"height":12}},{"id":"c0738a14-4443-471e-b97b-fe62981f3d2b","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":123,"box":{"x":69,"y":906,"width":700,"height":12}},{"id":"d8f89188-c6c5-45c9-813a-480f7c98d077","block_type":"box","text":"II-78","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d6b4f521-6118-41b5-a4eb-f7d28aa11089","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"668277b7-d49c-4a0d-b3df-fd89dc0a75ec","block_type":"box","text":"Telecommunications.","page_number":124,"box":{"x":103,"y":45,"width":147,"height":9}},{"id":"e7f010ef-9f97-435a-aaca-08eac36d7ec6","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":124,"box":{"x":256,"y":45,"width":652,"height":11}},{"id":"4664556c-6b79-489c-8998-960035a95ded","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":124,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f3eb6fba-65fa-4026-a41b-86e8ee0fd7c8","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":124,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"bb3b9345-a450-479d-a09a-a9d780e66320","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":124,"box":{"x":69,"y":90,"width":786,"height":11}},{"id":"1cec90d9-cb6f-4fbd-9a73-502a17485d20","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":124,"box":{"x":69,"y":105,"width":784,"height":11}},{"id":"2b08dd29-94a4-4048-af01-fc8f061ba290","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":124,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"757d80f8-ad4b-4c36-a7be-2f87e225d6c2","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":124,"box":{"x":69,"y":135,"width":790,"height":12}},{"id":"053ffe43-23f4-48f0-8e97-bbcd8de61c10","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":124,"box":{"x":70,"y":150,"width":788,"height":12}},{"id":"7dadcfbb-6cc3-4918-a001-8eab5e58481e","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":124,"box":{"x":68,"y":166,"width":825,"height":11}},{"id":"8f7ace5a-9aff-41cd-b908-187f2ddd4311","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":124,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"fd75cdbc-5747-470a-8bc2-0b57fa78a0b6","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":124,"box":{"x":69,"y":196,"width":821,"height":11}},{"id":"30b8d8b0-21d5-41cb-811e-84e59927e00d","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":124,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"ec685b26-28cd-4abd-925e-c46e12205882","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":124,"box":{"x":70,"y":226,"width":821,"height":11}},{"id":"83f5cc83-2b5f-4b30-af45-e970df880a48","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":124,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"a93b8353-c9eb-4747-9c06-91d79b960be1","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":124,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"ad002e80-cacf-40fa-9318-d30465e48135","block_type":"box","text":"residential, corporate and governmental customers.","page_number":124,"box":{"x":69,"y":272,"width":367,"height":11}},{"id":"c2941a7a-b219-463a-a87c-e35b40596cb3","block_type":"box","text":"Gas.","page_number":124,"box":{"x":102,"y":294,"width":31,"height":9}},{"id":"b912c815-9765-43e7-99a6-a400dcf5ce23","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":124,"box":{"x":139,"y":294,"width":740,"height":11}},{"id":"014d2f6f-d5e1-4231-b840-328b9daee3bc","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":124,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"19c0da70-06e8-4b67-9266-dc9e2b5a363a","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":124,"box":{"x":70,"y":324,"width":756,"height":12}},{"id":"3634e169-a683-42c4-951d-82dbbf3c149b","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":124,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"3a133d7e-e262-4d8a-a84e-4c23d3590182","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":124,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"d2c568e5-c9dd-4894-952a-4315136f61de","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":124,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"2dea7e74-1743-40c1-ab44-5952df8d882e","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":124,"box":{"x":69,"y":385,"width":782,"height":11}},{"id":"905d72b7-02ed-44c6-87d7-3ccb56b54ffb","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":124,"box":{"x":70,"y":400,"width":829,"height":11}},{"id":"9a4631a2-4e20-4255-be36-a119df1a7bb4","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":124,"box":{"x":70,"y":415,"width":691,"height":11}},{"id":"4473f8d4-1d13-459b-9339-34198875de68","block_type":"box","text":"Water.","page_number":124,"box":{"x":103,"y":438,"width":42,"height":9}},{"id":"5aa43c67-abaa-4267-b46b-0002903ac44e","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":124,"box":{"x":151,"y":438,"width":754,"height":11}},{"id":"2702da36-a152-4ce3-a7a5-6cda1fbe66ab","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":124,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"31f47657-71cd-4f08-8b5a-da6afbe1da75","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":124,"box":{"x":69,"y":468,"width":806,"height":11}},{"id":"d1ecec06-749a-40e7-9136-8055a1e701bf","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":124,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"d678b2ec-5ed5-44e9-85e9-db4b6b57cb20","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":124,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"9a84a403-16cf-44dd-9eda-77adee1c1bc6","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":124,"box":{"x":69,"y":513,"width":832,"height":12}},{"id":"116eb825-b5f3-4aa8-aa21-e7c51176f5f4","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":124,"box":{"x":69,"y":528,"width":662,"height":12}},{"id":"9c9ebf97-9f87-4fd2-8c10-20af445dcc3f","block_type":"box","text":"Utility Industries Generally.","page_number":124,"box":{"x":103,"y":551,"width":186,"height":11}},{"id":"565a2914-49a0-4d56-a6e5-f05096a14312","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":124,"box":{"x":296,"y":551,"width":584,"height":11}},{"id":"84469e81-df23-4db6-b230-10c5dadc7591","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":124,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"4930a213-dadc-42ce-a8e7-e3aa856f87b7","block_type":"box","text":"not develop in the future.","page_number":124,"box":{"x":69,"y":581,"width":178,"height":11}},{"id":"8200d828-a4b9-4cfa-9a18-3a4cb6455c3c","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":124,"box":{"x":103,"y":604,"width":585,"height":11}},{"id":"ffdb014a-8352-4213-87a2-fb4942c4e14a","block_type":"box","text":"A Fund may purchase or sell","page_number":124,"box":{"x":694,"y":604,"width":200,"height":11}},{"id":"b738bc97-78f6-4dca-9af0-d2d13da35eec","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":124,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"87ee0427-358d-4777-afd4-6b7100a75a99","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":124,"box":{"x":69,"y":634,"width":777,"height":12}},{"id":"c4bc223e-5831-4230-8de6-4869004ca4e7","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":124,"box":{"x":68,"y":649,"width":820,"height":12}},{"id":"3e58ade6-38d2-4c27-bf41-b9ef51a743e4","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":124,"box":{"x":68,"y":664,"width":807,"height":12}},{"id":"2574f8eb-e1c4-4ccb-b864-549e98f59d89","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":124,"box":{"x":70,"y":680,"width":430,"height":11}},{"id":"aea320ab-1895-427a-9cc3-40d87f7fba02","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":124,"box":{"x":102,"y":702,"width":750,"height":11}},{"id":"8487ce07-c6d4-4997-baf7-7ebd8f84d856","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":124,"box":{"x":70,"y":717,"width":823,"height":12}},{"id":"3c4ece6c-1aa2-446e-8c05-3f45a6a20dd2","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":124,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"ee7f6343-662b-4da7-860c-5fb858d080d0","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":124,"box":{"x":70,"y":748,"width":755,"height":11}},{"id":"6a30f20f-3aa6-4604-af6f-714393223cb2","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":124,"box":{"x":69,"y":763,"width":799,"height":11}},{"id":"01278c03-7cad-47d6-aa33-b0549e20a638","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":124,"box":{"x":69,"y":778,"width":614,"height":11}},{"id":"ea2ae6c9-327e-4512-aabd-320eb967e086","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":124,"box":{"x":101,"y":801,"width":780,"height":11}},{"id":"6c1f3752-2211-493c-9a7f-2d47d4bd1935","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":124,"box":{"x":70,"y":816,"width":823,"height":11}},{"id":"4f1098fe-1384-43df-aea0-2f0f375994ff","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":124,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"c45d24c3-0444-4b5c-8180-dccf7008837b","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":124,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"a8ff37ed-944f-4ad1-806f-b38f73de8206","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":124,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"a4899c3f-3ded-4dbf-bf1d-5af914e2175a","block_type":"box","text":"II-79","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f710f2a4-244e-4eae-a67e-e6f59d95b277","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06b6f43c-a853-467f-a485-79817c5b1538","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":125,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"319efc9a-f660-4465-b680-3c113bd1bde4","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":125,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"6133ee92-05f7-4e6b-b10f-60af6423d907","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":125,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"ed93f50e-d826-422a-982f-429be1dd9bfd","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":125,"box":{"x":101,"y":98,"width":784,"height":11}},{"id":"3ef4e5fc-7a6e-4793-8b03-d8a857d760f9","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":125,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"f011ba32-062a-412a-9ac6-93ca59ba8ec2","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":125,"box":{"x":69,"y":128,"width":434,"height":11}},{"id":"9b01c1b2-d3fb-4ca9-80c5-1aa76b7295aa","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":125,"box":{"x":101,"y":150,"width":745,"height":12}},{"id":"e99e6823-4334-44d2-b095-ddacdfddca76","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":125,"box":{"x":68,"y":166,"width":831,"height":11}},{"id":"d832aee4-160a-417e-89c8-c49722bcedc0","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":125,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"8af5acbe-862a-4fae-ac71-0bcccd72971c","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":125,"box":{"x":68,"y":196,"width":514,"height":11}},{"id":"bd7d21fd-4381-40ae-bcff-13c0685386c3","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":125,"box":{"x":102,"y":218,"width":759,"height":12}},{"id":"6c49e45e-07d6-4e0f-917a-535255aea125","block_type":"box","text":"securities (","page_number":125,"box":{"x":69,"y":234,"width":78,"height":11}},{"id":"89396681-e78f-4cac-b870-74c709dac58d","block_type":"box","text":"e.g.","page_number":125,"box":{"x":148,"y":235,"width":25,"height":10}},{"id":"d43e88b0-86f0-45ea-b07d-7851a0fa579d","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":125,"box":{"x":176,"y":234,"width":686,"height":11}},{"id":"bb1dfec7-1e37-4649-a164-1aa8e77367e3","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":125,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"c68cd237-c8f1-45e8-8858-f518f584d8ae","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":125,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"93864264-6b9a-478d-ae21-51de5cbbb7e8","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":125,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"d3002181-45ac-486b-90b9-7c6ea46cca15","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":125,"box":{"x":69,"y":294,"width":826,"height":11}},{"id":"457894d3-9956-4552-b981-ae658775c2ab","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":125,"box":{"x":70,"y":309,"width":816,"height":11}},{"id":"b9f27a71-bd83-4838-b225-3cad3b1a05d2","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":125,"box":{"x":70,"y":324,"width":349,"height":11}},{"id":"71e60e48-3b92-4022-880e-9d0eb5808659","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":125,"box":{"x":102,"y":347,"width":800,"height":11}},{"id":"3ff9f374-ca2a-4cc5-879f-748586dc0381","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":125,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"f418d6dc-3f9e-4eda-9398-de1be91cebfd","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":125,"box":{"x":69,"y":377,"width":814,"height":12}},{"id":"1d9647e9-52bc-4095-a198-0d257020a6e5","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":125,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"44f083c3-f715-4045-a6fb-eb369e1f3d36","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":125,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"143deeba-5a45-4e46-9b8e-b0c5ae59b2c8","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":125,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"43ec5a64-dca7-4aef-8fb7-42745029ac4f","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":125,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"ffef9ff3-0f79-4364-a84c-2520b7375161","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":125,"box":{"x":68,"y":453,"width":573,"height":11}},{"id":"5a6fefe2-e276-4ca2-b694-4e36d214cbaf","block_type":"box","text":"Yields and Ratings.","page_number":125,"box":{"x":103,"y":476,"width":139,"height":11}},{"id":"34bf22c2-97da-449b-8c1a-467398210b68","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":125,"box":{"x":247,"y":475,"width":628,"height":12}},{"id":"cd54f706-7bfe-40db-933e-245d6202f0a7","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":125,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"5ebc3ed7-6bed-4746-a0c3-78591065f0fc","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":125,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"25df01a7-1002-4075-998d-9d97fd832c3f","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":125,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"c2fb0474-47f8-4d31-a2f2-74d1c00c16b6","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":125,"box":{"x":68,"y":536,"width":792,"height":11}},{"id":"64322950-33d0-487e-a612-f9c73d4a4a46","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":125,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"1ee076b0-d1a3-4892-bc1a-46d824537508","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":125,"box":{"x":69,"y":566,"width":786,"height":11}},{"id":"81a9786b-e90e-438d-b023-1322cce8b81b","block_type":"box","text":"continue to hold the security.","page_number":125,"box":{"x":69,"y":582,"width":204,"height":10}},{"id":"b5c92706-f1ce-4f5e-aaba-7a2ef6d6e5f2","block_type":"box","text":"Zero Coupon Securities.","page_number":125,"box":{"x":102,"y":604,"width":175,"height":11}},{"id":"7e4b5b3c-43b4-4b9f-ac9d-8874f19a9c17","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":125,"box":{"x":283,"y":604,"width":601,"height":11}},{"id":"2b659766-5679-4c72-8a57-8cdb1a599ee2","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":125,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"05b4587a-0067-4a4d-aeb9-e45576b1db7f","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":125,"box":{"x":69,"y":634,"width":822,"height":12}},{"id":"8a47c999-f4c2-42e7-a8f8-a80dfef2eea3","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":125,"box":{"x":68,"y":649,"width":814,"height":12}},{"id":"cd2fb53e-60a6-4e1d-ad95-74aaffddeeb3","block_type":"box","text":"security.","page_number":125,"box":{"x":69,"y":665,"width":57,"height":11}},{"id":"84f2f55c-fd1d-4d09-8c74-81bc160e45fe","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":125,"box":{"x":101,"y":687,"width":749,"height":11}},{"id":"4210a622-8daa-4724-991b-10b390cd1338","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":125,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"4331f58d-d29c-440f-abc8-844be8c3679b","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":125,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"e2fd67dc-e272-49e9-b821-da43010046be","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":125,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"808b77d0-e995-452e-b1f5-31b65ba53876","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":125,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"91978dc9-0339-4dbd-90bd-2f161801656c","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":125,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"5ac086db-659c-4fe2-b469-ebe95e901e1f","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":125,"box":{"x":68,"y":778,"width":805,"height":11}},{"id":"d08cfd4f-4a8a-4ce2-8657-ee59a1aa4cc5","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":125,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"606d83dd-7003-4c47-9ff3-9f43c0d87606","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":125,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"770455ea-c57d-49b3-a460-dc300da54623","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":125,"box":{"x":69,"y":823,"width":800,"height":12}},{"id":"dfddb599-cbc7-46f9-a35c-96ff76c4b664","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":125,"box":{"x":69,"y":838,"width":400,"height":12}},{"id":"82091f55-18ef-4897-ac04-fef4942ab2f0","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":125,"box":{"x":101,"y":861,"width":775,"height":11}},{"id":"f5a81e34-c61b-4c43-9571-ab0d08431cfb","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":125,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"a7e994df-78fa-40c8-8384-ff2fb156acd7","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":125,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"0045d19a-21ac-43ae-a43c-cfe55ae9f94f","block_type":"box","text":"intervals.","page_number":125,"box":{"x":70,"y":907,"width":64,"height":8}},{"id":"b6d90a02-7e04-40e9-a5fd-22107f48881c","block_type":"box","text":"II-80","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2caf97e6-926a-45c5-9e3c-f392726076c3","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0aaf6824-3f59-4325-97aa-51bce568e974","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":126,"box":{"x":102,"y":45,"width":749,"height":11}},{"id":"c912b834-e0d6-4eb7-8bb0-ee661aede89a","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":126,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"97e87a4e-6eb4-4a37-84e6-296f776dc9d5","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":126,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"9b864cce-0ecb-4cf1-ba68-23bba9174722","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":126,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"c5e49642-be7c-4afd-b1a2-867017753cd8","block_type":"box","text":"exposure to zero coupon securities.","page_number":126,"box":{"x":69,"y":105,"width":253,"height":11}},{"id":"564a59ba-09c2-4713-afaa-122c12b45521","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":126,"box":{"x":102,"y":128,"width":740,"height":11}},{"id":"8ba3e009-dd17-4ac5-ac27-eeb0068b8174","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":126,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"9992d625-2def-4cb2-ab0a-188d75293b16","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":126,"box":{"x":70,"y":158,"width":829,"height":11}},{"id":"82b337ca-f8b3-4764-981e-44dc2fcd70d5","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":126,"box":{"x":69,"y":173,"width":741,"height":11}},{"id":"46b6c5bf-a099-4b72-b006-01e00dfdb593","block_type":"box","text":"Suitability. (All Funds)","page_number":126,"box":{"x":101,"y":196,"width":161,"height":11}},{"id":"b60b707c-5901-423e-bcb5-1a0ffe3fb119","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":126,"box":{"x":101,"y":218,"width":793,"height":12}},{"id":"4dcb853b-1d8c-474d-b671-d9da4c616826","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":126,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"87de8233-7820-47d0-a38c-7d3eed6021e8","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":126,"box":{"x":70,"y":249,"width":810,"height":11}},{"id":"2f460378-244a-401d-a51e-aec3292cc780","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":126,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"ac41ebd7-b358-4488-9eea-973539b90902","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":126,"box":{"x":68,"y":279,"width":460,"height":11}},{"id":"a29a2335-53e3-47f8-a7ae-6e03e4dda545","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":126,"box":{"x":102,"y":302,"width":264,"height":11}},{"id":"88ebec5e-b6a2-4735-80cf-e338eb76c40e","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":126,"box":{"x":102,"y":324,"width":745,"height":11}},{"id":"3c942d73-2926-4224-9449-cb2144ae248e","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":126,"box":{"x":68,"y":339,"width":807,"height":12}},{"id":"1eed840f-73b1-4305-8231-b78409f44c19","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":126,"box":{"x":69,"y":355,"width":528,"height":11}},{"id":"96c24864-4550-4336-a842-c0060e98ffb0","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":126,"box":{"x":102,"y":377,"width":735,"height":12}},{"id":"88af2eea-7765-499a-aa73-8da2404c3e8a","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":126,"box":{"x":69,"y":392,"width":775,"height":12}},{"id":"9286e6a7-d90a-4a95-9295-4da3004aa32d","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":126,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"bb88a3bc-4d1a-4873-82f9-65952504ff20","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":126,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"8e429175-bf34-41e2-810b-e85fc7819856","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":126,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"842cf17c-ea0d-4e98-8545-8fb37a69fbba","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":126,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"c223e45f-9596-4b25-8d1f-a84dabd318a9","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":126,"box":{"x":68,"y":468,"width":802,"height":11}},{"id":"087bca4e-f787-4b8f-bab1-5944f5dcb021","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":126,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"ec05ef03-e46d-4c68-b1b5-f4cd44e8fcf6","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":126,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"85608262-30e6-4150-a077-8324b5e3b9ef","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":126,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"7a466cbb-7b1f-4d4c-bc47-c82083d9adbd","block_type":"box","text":"(","page_number":126,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"7b5a929a-366e-47a7-aae0-02d3e1ba34b6","block_type":"box","text":"i.e.","page_number":126,"box":{"x":74,"y":529,"width":21,"height":8}},{"id":"fafcbefa-36b9-47b3-8dcb-1ff89286e35d","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":126,"box":{"x":97,"y":529,"width":806,"height":11}},{"id":"ab6fc590-8517-4d98-944a-cd1dac63b522","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":126,"box":{"x":70,"y":543,"width":824,"height":12}},{"id":"d9037579-0462-4114-b20c-ae81e24ba6b1","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":126,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"a03b3f9d-a69e-4b69-a08a-38c6cb09dab8","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":126,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"4275e849-bf85-4a4d-a280-93307b220977","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":126,"box":{"x":69,"y":589,"width":815,"height":11}},{"id":"7e96befa-f705-4b52-872a-d1294de780ee","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":126,"box":{"x":69,"y":604,"width":781,"height":11}},{"id":"06ef257a-0206-4685-bd5a-8e24c2656859","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":126,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"d33704c6-0b17-43fd-90fd-fe88b488bda0","block_type":"box","text":"regarded as the sole issuer.","page_number":126,"box":{"x":69,"y":634,"width":198,"height":12}},{"id":"522d9b69-2367-49ea-833b-251cc7f18047","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":126,"box":{"x":102,"y":657,"width":784,"height":11}},{"id":"15fc5684-8624-4699-a086-700919a4baa6","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":126,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"53188c54-2fb2-4295-a6ac-9081c9dd9254","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":126,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"5c0a1133-94d1-43d3-b05c-5202174f7388","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. 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Affiliated feeder funds — iShares S&P 500 Index Fund, iShares U.S. Aggregate Bond Index Fund, Treasury","page_number":134,"box":{"x":70,"y":347,"width":790,"height":11}},{"id":"01ffe65d-fae9-45a2-96c5-35db10779828","block_type":"box","text":"Money Market Fund (Cayman) and their respective boards, sponsors, administrators and other service providers.","page_number":134,"box":{"x":102,"y":362,"width":803,"height":11}},{"id":"da6f7c73-204c-42d6-aa68-8cc142b8ca7a","block_type":"box","text":"13. 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The Funds, BlackRock and their affiliates do not","page_number":134,"box":{"x":69,"y":465,"width":811,"height":12}},{"id":"aef0baea-be93-48f8-9de6-e69cf60d8e44","block_type":"box","text":"receive any compensation or other consideration in connection with such arrangements.","page_number":134,"box":{"x":69,"y":481,"width":626,"height":11}},{"id":"5e312e16-7aa6-4cea-92fe-a7a6742f935d","block_type":"box","text":"The Funds and the Manager monitor, to the extent possible, the use of Confidential Information by the","page_number":134,"box":{"x":101,"y":503,"width":728,"height":12}},{"id":"b83f45db-81e3-4c7f-8c71-dc669ba58270","block_type":"box","text":"individuals or firms to which it has been disclosed. 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(collectively referred to in this section as “BlackRock”) and their respective directors,","page_number":134,"box":{"x":69,"y":722,"width":829,"height":12}},{"id":"e7e1d8d0-68b5-4d65-8544-0af9b24db12b","block_type":"box","text":"officers or employees, with respect to the Funds and/or other accounts managed by BlackRock, may give rise to","page_number":134,"box":{"x":69,"y":738,"width":802,"height":11}},{"id":"224a96cc-d0e3-4465-9e96-3f9f5deef6fb","block_type":"box","text":"actual or perceived conflicts of interest such as those described below.","page_number":134,"box":{"x":69,"y":753,"width":507,"height":11}},{"id":"ccd37ade-8cf6-4a2e-b6bc-d84dc9fa32ab","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. 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These are considerations of which investors in a Fund","page_number":134,"box":{"x":69,"y":836,"width":804,"height":11}},{"id":"64e76d2a-6c39-48f8-b24e-42898d96292f","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":134,"box":{"x":69,"y":851,"width":806,"height":11}},{"id":"4329a589-2715-4db5-bc2b-878aac9d8532","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":134,"box":{"x":101,"y":874,"width":722,"height":11}},{"id":"c7d16d20-3e79-43c3-ac24-831a023d9132","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":134,"box":{"x":69,"y":889,"width":827,"height":11}},{"id":"9f4a5ee9-1061-4586-96f6-026bde6fd004","block_type":"box","text":"or sold by a Fund.","page_number":134,"box":{"x":69,"y":904,"width":125,"height":11}},{"id":"d0a8637b-c946-47c7-aace-db6a9b487e27","block_type":"box","text":"II-89","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7965f1da-d21d-4562-bd14-ceeb3fc0e412","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64263528-3b30-4a13-88a4-214c22df79da","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":135,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"b2af97e4-2b88-4386-bfb7-509c117b0ade","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":135,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"7fbf1c66-3ac6-4550-968c-459b70751754","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":135,"box":{"x":70,"y":75,"width":828,"height":11}},{"id":"2d3c80b4-a21c-472c-9244-4411a4880ed1","block_type":"box","text":"and instruments as the Fund. 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There may be","page_number":136,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"2618d7fe-3d40-4b10-8d55-ceb17de60dc8","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":136,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"bfd5d8c2-bc7f-433c-99d9-dbcccfbbe71c","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":136,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"20e93e59-fb69-4e11-b0cd-44fe8ed72720","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":136,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"63bbedcc-e774-455e-a87a-c5e973dd64d7","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":136,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"61b1ee48-be9f-4135-a4ec-3ba86cbeee3e","block_type":"box","text":"and those activities may have an adverse effect on the Fund. 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It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":136,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"f8ac44cb-176d-4576-86c6-29de2eeaaa2d","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":136,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"c0c3c9b1-2163-485e-bfc9-bb323de4b82f","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":136,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"e775db3a-5aa0-41e6-bba7-3404476a6f7c","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":136,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"fb220153-2100-4b43-b285-31f7e6d229cd","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":136,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"f8481e53-a7b0-416b-91b1-cd4f2f911489","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":136,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"88eeaafc-3225-4ea5-bf28-991aac314128","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":136,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"00e15979-432b-41c4-bcc3-e854cc5d01e2","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":136,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"29ba4834-6701-4590-9352-260e9400a8be","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":136,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"9b853dfe-4c84-4bd3-ba17-c92a55736b0a","block_type":"box","text":"when position limits have been reached. 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BlackRock will not be under any obligation, however, to effect","page_number":136,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"d6848f81-3ff6-4d4f-bc81-f60e7a192d09","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":136,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"0003c386-0255-4ba0-af48-f521e18d948d","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":136,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"182f1be3-1b06-4ea7-9846-ce7e1b62764a","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":136,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"95760235-7e09-407b-8823-b8afc09af6c3","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":136,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"8e9d1986-aaeb-4cd5-914a-71814d5d30c1","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":136,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"71868b4a-bf32-45f1-87e7-2eeb41f3f197","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":136,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"ca9f9450-12fc-4f73-9c23-5e92843eacd5","block_type":"box","text":"managing a Fund.","page_number":136,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"125a6b9e-2ece-41aa-84cc-66efe43a9a1d","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":136,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"41a99585-a9f4-4527-83fa-c896be27cba3","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":136,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"463d9652-efac-4de6-addb-52d5aa6a2b61","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":136,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"22e884cf-6642-46c3-90ed-2590a5ff211a","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":136,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"42d56ebf-4d6d-4d9a-9757-567100b96221","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":136,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"f89e5ce6-c670-4d3a-98b1-12aa0e628693","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":136,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"8a78654b-c060-43f0-bd27-45531aa5d0de","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":136,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"a03a4a52-5d4e-4e57-bcf9-0abee0088c10","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":136,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"ab48a578-b7e5-4e82-933f-fa56d204efbd","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":136,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"4960f124-c72c-46be-8415-61be05f38c92","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":136,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"1614fbb5-7fc3-45e7-89b0-389a1714f6ad","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":136,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"d1709214-67c8-4bac-ac0a-8300f59a6210","block_type":"box","text":"as the counterparty, principal or issuer. 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In addition, the purchase, holding and sale of such investments by a","page_number":137,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"fbe6a232-0c8a-4b1e-807f-43b227fcb63d","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":137,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"183ddaec-dcc5-4ef1-aff4-de08ac9cfdd8","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":137,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"fd6a6701-ae8d-400f-a44e-89ea863bae26","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":137,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"7bcf3c03-7ec2-44d3-add2-ff98acd798c0","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":137,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"eccafeab-3164-4fe5-887e-920e6ac051e4","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":137,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"c7c59d18-2f6e-4c69-9d22-81c180713d5c","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":137,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"a2b9375e-b58b-4646-ac05-1d9b646a4068","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":137,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"011c2378-c1c3-4370-b286-8616c27eeea9","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":137,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"f874c439-3dfc-424a-94c7-e8c37eb72078","block_type":"box","text":"under management for BlackRock.","page_number":137,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"c98085c6-bbd1-453c-890e-6affd09b97cb","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":137,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"ff60ca5d-56a8-4a20-917f-02abea34758e","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":137,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"eb72815b-a4cb-4041-8cd5-a6920cf14af9","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":137,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"22f2d8f8-fc96-4d68-bd31-a8277d2ae8bd","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":137,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"62f5d7de-0032-4bad-a814-c3f48c897037","block_type":"box","text":"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":137,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"99844f3c-5756-470f-85e1-fd89de83ad81","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":137,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"987abb6a-bb0d-4a34-aa60-5aa1968e1936","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":137,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"ce43091e-2df3-49f3-8f19-798fc4447015","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":137,"box":{"x":102,"y":612,"width":768,"height":11}},{"id":"fa11c687-fa6f-48d0-ad81-8b196546fef1","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":137,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"70c3ebee-0623-4232-89c0-5b669aaeecd4","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":137,"box":{"x":69,"y":642,"width":785,"height":11}},{"id":"ede72a38-5c9a-492d-a63e-a3018a585d4e","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. 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As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":137,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"be484dd7-fc88-4465-9ba1-264acddde52c","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":137,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"0d0e212c-e001-45cb-aa6b-5ff7d89b77fe","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":137,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"ab19289a-0cd9-4846-b34a-a22d15565532","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. 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BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":137,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"67fbcc07-f99a-4513-b9d6-4d231f891c82","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":137,"box":{"x":70,"y":846,"width":727,"height":11}},{"id":"b82807f4-0446-4f0b-844d-3a202df079b7","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":137,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"bcafaf0e-06e9-4d12-ae98-5463254dc134","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":137,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"588de9b8-b748-488d-9070-6b475c1469a6","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":137,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"a498c073-2c11-4713-b759-f90c46d02197","block_type":"box","text":"II-92","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"721620b6-27f3-4a4e-a1bf-498c1ed7d836","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c14dced5-5b5f-41c8-a5ac-8815a9e215ff","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":138,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"c68af1ec-331a-431d-b8b8-87e08e39e0f1","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":138,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"da21b7f2-c6aa-417b-aa1d-37458c8a6163","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":138,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"4cf9a747-1208-482b-a8dd-6c4ce32ca36e","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":138,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"ed069be1-18e8-4165-b7d1-7e31b40eb1e0","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":138,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"ac63beb6-f6d7-4a6d-af38-d7aafc82969e","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":138,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"29fa7c50-6c17-43e3-a306-b9314ca9f873","block_type":"box","text":"particular securities or types of securities, or for loans overall. 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In","page_number":138,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"19397ccd-137e-47ae-8f1b-f3eb3908dc9b","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":138,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"6d1ba095-8336-49ce-95d7-3fdb3e6a39d9","block_type":"box","text":"various program limits (","page_number":138,"box":{"x":68,"y":226,"width":168,"height":11}},{"id":"8209b282-1d36-4345-a138-96c805b697a8","block_type":"box","text":"i.e.","page_number":138,"box":{"x":238,"y":226,"width":20,"height":9}},{"id":"ab46ad99-efc9-4b75-a1d0-41faace5cc3a","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":138,"box":{"x":265,"y":226,"width":621,"height":11}},{"id":"850a4df0-addd-4bc8-8ccb-da08f46e62db","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":138,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"81c70c75-cb61-47be-a5a4-5afee4d56c85","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":138,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"aeb395f6-2cf5-463d-9aa2-8b0e81f5af92","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":138,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"71194c33-b21a-4216-a778-36cb7faecd65","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":138,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"bf94d3b1-746e-483a-aff6-ec5cf2261066","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":138,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"fb9c3968-9715-4525-a90e-82ee4ca4546c","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":138,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"883cb707-1aee-4ed4-b9bd-cc8d17826c5a","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":138,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"5a31be82-dc01-4d04-83b7-621d0707d234","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":138,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"4f43f351-1b20-4aaf-9d6f-d741375f1e7d","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":138,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"4636655f-628f-464b-b782-4f549031d560","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":138,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"ad2fe653-9d5b-44c3-9e95-1ef803415930","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":138,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"760d1dc4-08e0-42a9-8a55-846ca26f14c9","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":138,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"4ce9c6c7-81f5-4f74-a79b-0fa3028b0e99","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":138,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"786fe1fe-0813-428e-bdc7-dbd0792d14ce","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":138,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"22a7a13d-e639-4301-ad30-6e43a80e9fbc","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":138,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"ab001e5f-c295-4341-808b-587ffcb5b219","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":138,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"89454ae8-f2c6-420d-8afc-009c8f537263","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":138,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"f68d33ee-34f5-40f4-ac40-6b2cdcae060f","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":138,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"c376bcc2-0907-4871-a720-66fd671e8d7a","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":138,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"48613739-2165-431c-9675-cfac7403d99c","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":138,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"735e28de-92c2-4b96-bd43-28db655ba12a","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":138,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"450a4eb3-d77d-43b8-96a3-28aa412ed7f3","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":138,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"36c1b864-c26a-4a93-b7f7-138699a4dd3e","block_type":"box","text":"than through client commissions.","page_number":138,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"225e85c9-5aeb-4427-bac8-21c686950b4b","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":138,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"2b8a4fa9-0f1f-49f3-a45f-8476c1021c21","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":138,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"807e4ef9-0c01-48bc-93d4-904f0f19708a","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":138,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"8e048500-0f1e-4470-b67b-baccebcb8169","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). 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Such products and services may","page_number":138,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"ce644aed-b601-4227-a8bc-f2a1a1f50562","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":138,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"b2b3d182-c391-49e9-9bd2-7661152204d5","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":138,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"0b06e27f-069b-4180-9e99-7dc03d8b30fa","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":138,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"1600c7e4-f791-4fae-9eed-4847862949e1","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":138,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"fe237d56-9c3a-4b4c-8509-714def7e6da4","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":138,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"f432f2ce-afc6-4f0a-bd68-f90fe71328f2","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":138,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"da802c95-4927-48b8-af65-90f2c56fa66d","block_type":"box","text":"and services itself.","page_number":138,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"74d6f90f-9546-4db1-b241-f3e9f1734e7d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":138,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"8ee36633-acfd-4ec6-84f3-156ceebc04a7","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":138,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"276dcb49-4612-4644-9f99-8dc326ef8585","block_type":"box","text":"II-93","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3047795d-4d4e-4887-a039-8664a77e3b52","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9a79ee5-1339-4de5-9229-0fbcfc0584ba","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":139,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"ba726266-a281-4a5f-990d-bab5c21aaf8f","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":139,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"77f017d9-92ee-48dd-87f7-830e637bab07","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":139,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"c8210e0e-1eec-45e7-99d3-79497f5abbc1","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":139,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"6eb9fb17-a5bb-46d9-ba19-b0f96cb8b14e","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":139,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"4c7f9be1-00c5-43fe-8761-399f76872acb","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":139,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"3623d57b-782c-4e41-96d2-548aaa50535b","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":139,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"993beb8a-f9f1-4ee7-8779-5834d7da467a","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":139,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"dba56b1b-2e15-4872-a01a-bbc627f14f36","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":139,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"ee7f0d88-b854-4631-b0fa-83dabbab9a1b","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":139,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"a9f1c9a7-724f-47a9-9000-8e44f7238ea6","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":139,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"baa23763-d74f-4f2c-b560-24df502b4b4d","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":139,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"d9480d5e-0d89-40a5-93c7-bc0f46685673","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":139,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"61afd0a5-92b1-4998-92cb-df9ab837fd1d","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":139,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"bd2f5eba-c53b-4ee1-a3dd-247b70f6dbcf","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":139,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"f3694a94-633e-4f66-a89d-bee28408899b","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":139,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"001fb90c-9e47-4b73-a809-0e6a7476c2f4","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":139,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"9bfa875a-08dd-4685-b390-f40607bc414c","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":139,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"5d9d3481-8700-4188-92e0-b17c7341d848","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":139,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"c5ad7aae-3462-4435-ad2e-9a8558ec966e","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":139,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"47f97252-d5a2-4f27-b321-fb7098300b19","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":139,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"bce2e726-1d41-4f73-8dd7-6db0e4cbf81e","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":139,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"3f3674ea-329e-4578-8ff8-f6d92bac07d4","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":139,"box":{"x":68,"y":400,"width":837,"height":11}},{"id":"6a2e871d-660f-4e7b-935a-bffddc3f6585","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":139,"box":{"x":69,"y":415,"width":795,"height":11}},{"id":"c36558be-a9de-45f8-9226-133694c06a09","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":139,"box":{"x":70,"y":430,"width":490,"height":11}},{"id":"bcd9b4a2-0acd-46de-be19-7b85c5f9f7d3","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":139,"box":{"x":102,"y":453,"width":757,"height":11}},{"id":"36ff5c07-9437-4e46-960f-6744ac3dc23c","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":139,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"8ca346d8-6ffc-4306-bfba-c4379939d184","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":139,"box":{"x":70,"y":483,"width":837,"height":11}},{"id":"7c9846be-dfca-4d55-ad08-c5dac2da1ee1","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":139,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"03f58a0b-db42-46b2-b443-0808d4b44e6d","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":139,"box":{"x":69,"y":513,"width":796,"height":12}},{"id":"3713035e-24a4-44bf-8c09-0af9578838c4","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":139,"box":{"x":69,"y":528,"width":830,"height":12}},{"id":"05184543-3f03-4229-b7fb-8b532d104c57","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":139,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"708ed6da-a71e-43fa-a875-666cc7fcfb11","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":139,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"7d4c8a25-348d-4fe3-964f-93aca366fff9","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":139,"box":{"x":69,"y":574,"width":355,"height":11}},{"id":"53dee32f-fb76-4c15-90ef-a83ece33e904","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":139,"box":{"x":102,"y":596,"width":742,"height":12}},{"id":"8a8d4bc6-993d-477c-9d6a-19c7c4752706","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":139,"box":{"x":68,"y":672,"width":822,"height":11}},{"id":"4b455ce5-bc7a-4c9f-85df-7b4be9ac2235","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":139,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"fd549993-b86c-428c-aed2-cde11ce91005","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":139,"box":{"x":70,"y":702,"width":533,"height":9}},{"id":"69980178-660e-47b8-8964-71e02fbab72a","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":139,"box":{"x":102,"y":725,"width":789,"height":11}},{"id":"1824aaf0-4a4a-47ae-ad8a-5b804f4a0f89","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":139,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"5bcaed31-5b6e-4dbe-84c5-dd858d013a37","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":139,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"5591e58f-a576-4949-a31f-093fd5621bd1","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":139,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"c811b5c8-4121-4b33-865b-375e209f4076","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":139,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"b6348b7c-a968-46fe-8d75-fd332103a043","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":139,"box":{"x":70,"y":801,"width":745,"height":11}},{"id":"854d604f-e6ae-4459-bb17-53674ffab79a","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":139,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"e71e7552-beb0-4100-8534-64f794a7335e","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":139,"box":{"x":69,"y":831,"width":801,"height":11}},{"id":"c5f29e5c-5070-471d-b76f-ef4989b531f7","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":139,"box":{"x":70,"y":846,"width":711,"height":11}},{"id":"b90c706f-bab1-4947-aebd-dd1a8f50e4af","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":139,"box":{"x":102,"y":869,"width":741,"height":11}},{"id":"a147cc79-e5e8-46a8-bbfb-9e4a673ba7e1","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":139,"box":{"x":70,"y":884,"width":823,"height":11}},{"id":"e7e872eb-3c35-425a-adbb-96e743ec4c3b","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":139,"box":{"x":68,"y":899,"width":829,"height":11}},{"id":"1543f16c-0a33-4fc4-881a-5f069688ce8d","block_type":"box","text":"II-94","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d24ee8bb-2d1d-4c03-9fef-3e74c8f4faa0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b5a6b3c-cc2e-412a-b1e8-470ffd2bbdd9","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":140,"box":{"x":69,"y":45,"width":825,"height":11}},{"id":"ef0c6e78-b108-4e4f-bf0b-8ebb50348da3","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":140,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"280f5bb2-af1a-4fc6-aab1-096fd1ec9e1e","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":140,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"f256a4a3-8940-4785-bd20-19e19651d921","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":140,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"ecd683fc-c46d-4f45-83f2-23a8c9c0d844","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":140,"box":{"x":101,"y":113,"width":784,"height":11}},{"id":"797065d0-eddc-45e1-b3e4-cc62c9d288a8","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":140,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"5bab6c7c-313b-480d-a92d-48ac4eeaf07f","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":140,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"2095af83-ed6f-4b2b-9739-46e15dbed589","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":140,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"b6b22150-24eb-41a3-b6cc-a8f7dd2b17f1","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":140,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"b1002dca-6999-42a0-afae-997f708abdb3","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":140,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"cdb6b43c-aa1b-4891-a723-1c66fe618e8a","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":140,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"26a0896b-cba4-4ef4-b1bb-d1d8be465d6d","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":140,"box":{"x":68,"y":218,"width":832,"height":12}},{"id":"ed5eaae3-8526-4e05-ae63-6b59ae564694","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":140,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"901ae90f-fcf8-4cba-a817-415dacc96ba6","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":140,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"66e7331e-5861-412d-9421-09ca4270992b","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":140,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"0feb1e99-a643-4625-9301-8f3e4661a4f6","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":140,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"7fcebcca-e7cf-4b7b-a02c-0fdf53c12ce8","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":140,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"72e83b93-d2aa-4d28-8b21-da07ef4db4b9","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":140,"box":{"x":70,"y":309,"width":779,"height":11}},{"id":"8c709b04-892d-4f65-b4e2-9575c15b7853","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":140,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"7a2e2dcb-4ce6-4f7b-98ce-db2066b229a6","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":140,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"b607975c-69e9-4043-ade3-8b615e1209d5","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":140,"box":{"x":69,"y":355,"width":765,"height":11}},{"id":"08e37626-8204-4c7c-8a6f-9bfe06ca5b17","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":140,"box":{"x":101,"y":377,"width":784,"height":11}},{"id":"1fd5d776-ab62-4066-82d0-ada3897bc7fe","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":140,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"22b613f9-337d-4422-992b-2cdd9de9fdc9","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":140,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"7435bad5-71f9-40f3-9247-9df153b4a71d","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":140,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"d40bcabf-677f-4760-888f-09ccb3eeab40","block_type":"box","text":"some additional expenses.","page_number":140,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"5daa8c4f-727d-472f-b57e-a7ff3ada56da","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":140,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"bef3c5b6-508d-4e56-a4b3-3599525b806b","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. 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To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":140,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"c5720c85-f400-4c7d-984a-29e253b082ad","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":140,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"d52b4a8b-1ca5-410e-be7b-b3a9c7bd77b5","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":140,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"d4d1760e-3c52-410b-bb7b-f9909d2d5573","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":140,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"bf8ff3f9-cb0f-4e1f-bdfb-193c1e1aee7d","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":140,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"1532b8c2-504c-48f6-b784-2ca9c933757f","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":140,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"84a879f2-97fe-48ea-a838-3da22312703b","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":140,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"7e444b65-c8c6-4faa-9d2c-7687d5326c82","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":140,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"f556c64d-0cef-4309-86ea-e5d0e83d4ebf","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":140,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"4c65b315-17a1-4078-adfd-f4e49002a767","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":140,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"17582e29-1bd2-414e-ba26-fe58162619e2","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":140,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"1aba43e9-f10c-4f17-aed4-685089ad74cb","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":140,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"71ae40e5-33f8-4e23-af7a-810794571623","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":140,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"7c0eed4b-2e8a-410a-ad3e-985463af826b","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":140,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"1638f158-0c06-46e2-87a0-a16fe0001c37","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":140,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"dc235496-c6db-4a32-a148-6be6e3d8c641","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":140,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"a477df1f-6a2d-476b-9a81-f8c7f9866c9f","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":140,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"e03340f7-3a6a-4e60-9494-c217bbca375a","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":140,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"2b5cbcc3-786b-41b9-80e7-9c22b81559ad","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":140,"box":{"x":69,"y":801,"width":755,"height":11}},{"id":"e00997ba-6f22-48f3-8fd9-6c4e7983ac98","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":140,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"3a63f16b-353b-4398-907d-6e43c20b1092","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":140,"box":{"x":69,"y":831,"width":806,"height":11}},{"id":"6049e3cb-d3b7-4163-8b49-b5bf6b0e3d18","block_type":"box","text":"public information about the company (","page_number":140,"box":{"x":70,"y":846,"width":276,"height":11}},{"id":"2d9c5fed-7fb3-4ca6-85f0-46852db58d57","block_type":"box","text":"e.g.","page_number":140,"box":{"x":348,"y":847,"width":25,"height":10}},{"id":"d8e2908b-5456-4a93-a9dc-84a948659483","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":140,"box":{"x":376,"y":846,"width":499,"height":11}},{"id":"7e4a422d-52d2-4f13-b661-9a7ddcbb7e3e","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":140,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"21e90734-31ea-48f8-b765-8cb28e6a3e0d","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":140,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"e85bb06a-6782-451f-911e-360eba23197e","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":140,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"1c170bd8-c8da-49d9-a15e-a4f934ae79c9","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":140,"box":{"x":68,"y":906,"width":773,"height":11}},{"id":"c91cfbb8-5415-4a4e-a3b4-4d3ad05b6c9c","block_type":"box","text":"II-95","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c2dac572-5cd9-42a5-82ee-7f580ab7dc2b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d062498-670c-4888-8bf1-5486d649bbad","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":141,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"d35dc3f8-721b-4e4d-9193-8edc4d40280e","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":141,"box":{"x":68,"y":60,"width":781,"height":11}},{"id":"1e285407-b6d6-41a9-b2e3-784b4048b92b","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":141,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"eb6bea6f-8a64-4959-a3b8-26898cd47c4f","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":141,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"f22e7dd7-3295-44a9-84f0-2b89c57a6cfd","block_type":"box","text":"of the issuer.","page_number":141,"box":{"x":69,"y":105,"width":92,"height":9}},{"id":"83fb7806-bbbe-4943-8d13-62bc5e5bedda","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":141,"box":{"x":102,"y":128,"width":748,"height":11}},{"id":"87b40271-7c72-498f-b677-493fb063370f","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":141,"box":{"x":69,"y":143,"width":819,"height":11}},{"id":"58ef352d-fe67-4507-a0bc-dc5e3b4830c4","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":141,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"4114e9ab-fdcc-4a1b-aa76-03796c643a25","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":141,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"fe4fa317-76c9-49ff-9f43-2113f2b8562b","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":141,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"97186bf0-5df0-49cc-9a9c-73b585a6624f","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":141,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"11cb3042-7d42-4ba8-983a-025ead845a0c","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":141,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"0e6333a1-ee4c-4be6-9ec8-43f5d151c98c","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":141,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"8998c679-11b9-4e46-b120-b3fe527e7f23","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":141,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"23c8c2af-23fc-4786-b2d5-255950afb955","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":141,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"55b64f1b-418b-4060-b4c5-1db6e58faa20","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":141,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"df88294e-5b3b-4b5d-b212-3e7cd2b1970b","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":141,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"6b02072c-ff9e-47a9-b3eb-4581cf2d86aa","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":141,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"0b732d48-44d7-4532-a8a2-1b24ae9ee14e","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":141,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"b02ceb3d-4799-466d-a005-19c5eb61ed24","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":141,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"2ec2897a-fc72-42d3-a16c-a6d083d577de","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":141,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"0b9658fa-0091-436d-8da4-aefb40598e16","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":141,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"9c5c3c2d-8bcd-4efb-bb53-a819507c1f03","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":141,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"1767d6d5-f9cf-49ab-82f5-2a9158b7ef91","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":141,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"3d4f46af-b7e8-466b-bb76-afdfed34f5a2","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":141,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"a6987d5c-4439-43a3-b34e-388da764b46b","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":141,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"043c8c26-a919-47ad-8df4-c31d9d5d50c7","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":141,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"936a1d9d-680a-408a-b435-f0f1af659e5e","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":141,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"a79d1f78-cdfe-4370-9289-a92ec1a28c5d","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":141,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"1e048472-1522-49e3-811c-1bde1f767265","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":141,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"cf804b09-f9b5-4f59-b163-23b3bddd796e","block_type":"box","text":"a barrier.","page_number":141,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"8894661c-316d-4972-bce8-8ce475f0c13c","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":141,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"0489b7ad-5b32-4baf-8ebf-ea8862072b90","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":141,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"f7d82e86-c86e-4f52-ad99-a1552cdcdcec","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":141,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"712e3e58-57e8-4b80-acb1-3051c2330494","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":141,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"ac9785b7-9ebd-43a4-ae09-daee66c76ef8","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":141,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"6aa7bbf9-64ad-44f2-897e-32753522970e","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":141,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"7a0844a4-59d0-4d6f-884d-744be8e6d60e","block_type":"box","text":"that operate in certain industries (","page_number":141,"box":{"x":68,"y":634,"width":244,"height":11}},{"id":"faa32dea-0074-447a-8880-8683fd137094","block_type":"box","text":"e.g.","page_number":141,"box":{"x":314,"y":636,"width":25,"height":10}},{"id":"ba157b9a-13bf-4577-ab73-6323bbe58123","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":141,"box":{"x":342,"y":634,"width":515,"height":12}},{"id":"c1314deb-ea02-4223-81f8-54c347e67180","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":141,"box":{"x":69,"y":650,"width":523,"height":11}},{"id":"55f659b9-a17d-4be1-a39e-0934863612c1","block_type":"box","text":"e.g.","page_number":141,"box":{"x":594,"y":651,"width":25,"height":10}},{"id":"1e299f58-3315-4b8e-bac9-76bbbb917773","block_type":"box","text":", with mechanisms such as poison pills","page_number":141,"box":{"x":621,"y":650,"width":280,"height":10}},{"id":"cd830c1c-5bb0-4d82-9353-1ba40e958b05","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":141,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"a608ef6e-67da-4db8-8b7f-19e6414793f8","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":141,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"198adbdd-3633-4f69-96dc-e4f8a156b53b","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":141,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"d48ab8a3-2d5a-4db7-b933-d0569fe4d07f","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":141,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"db489042-21b8-4711-befe-51ea8e2766dc","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":141,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"1a2d7437-1470-4dda-9418-bf5966f5244a","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":141,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"b3e51f62-f3db-4979-bee8-358e3e4ce69a","block_type":"box","text":"seek to make indirect investments (","page_number":141,"box":{"x":69,"y":755,"width":255,"height":11}},{"id":"f2845dd1-44ae-4ae5-b1ca-1c9b9ae78788","block_type":"box","text":"e.g.","page_number":141,"box":{"x":326,"y":757,"width":24,"height":9}},{"id":"e0f39482-e167-41f9-999f-6b7c1f962a8f","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":141,"box":{"x":353,"y":755,"width":514,"height":11}},{"id":"8ccc1dd3-34be-42c0-a534-77df8790e5ae","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":141,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"42e654c8-4f4f-4126-a00d-7d05a09668e1","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":141,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"c0dc4b8f-6060-4d70-9d4f-804d94b9f99a","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":141,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"f006bbb4-b2b7-4933-af90-62957c85a3af","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":141,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"71ba9a53-0084-4240-9e56-f151fb57cd0e","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":141,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"73f38f76-5959-4c41-a6b2-f955a2bdbca1","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":141,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"9205ff49-1660-48ef-aba3-dd5550b8524a","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":141,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"1d552fe0-572c-4c1f-b61b-f74d755696f4","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":141,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"e11608d1-ce67-404c-ad1d-49ea21085577","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":141,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"237692ac-a0b2-40a7-80f7-241b21ccf9ff","block_type":"box","text":"II-96","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f3c85ad-311c-4130-b445-36d0fe29065f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfe28cdf-e72c-49dc-bbd8-ba55a06e20b7","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. 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For index funds, this means a fund may not be able to track its index as","page_number":142,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"cda7c90f-2d2e-46c7-a493-b769d3bafdb5","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":142,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"40082da3-4cb9-4f86-b89d-9b299d49f3dc","block_type":"box","text":"amount of the impacted security included in its index. 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These types of","page_number":142,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"fbadc95a-f741-4871-8dd5-bbef8c6cd7d8","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":142,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"8eaf6bd0-a80a-43d2-a737-5b3306156ea2","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":142,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"eca113af-2848-4b3e-9b51-23293b30b552","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. 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The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":142,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"0f7dc40a-f427-4c27-9c04-42c11643ec9d","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":142,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"ba40c862-1ec6-47ff-8947-90d7e2a1ca29","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":142,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"73f7abc5-b9f4-4c28-b2e3-916ba60f5126","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":142,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"37e9aac3-aa90-4ecf-a721-980b415e5c42","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":142,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"5153f081-097e-4ef0-8786-6db8837eebb5","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":142,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"a534ad1c-8d66-4e59-af26-c229b5f7dd25","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":142,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"c00f2fec-0f91-4b74-9988-892925f4d5ac","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":142,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"6a09b5b1-fedf-43f4-b44c-2ad94c11e57a","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":142,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"eb4d2810-091b-49f6-bd01-ac3ff2148851","block_type":"box","text":"with purchases of Creation Units of such Fund. 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In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":142,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"d5d80949-5dd7-408d-bdb5-d051f6ff6e22","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":142,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"d932c2f6-f368-4f9d-be6a-b0b1307864bc","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":142,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"ac5f39c7-9ce8-467d-968d-bb6fed31c48a","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":142,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"d72929a3-0c59-4057-ba42-2cd5f614b090","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":142,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"49a37693-1fa6-4ac4-be4c-ded4c6a06bcc","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":142,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"c332c0fe-eb1f-4456-a878-2f1c5fd1d264","block_type":"box","text":"strategy with respect to such security or asset.","page_number":142,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"dce5beec-8b14-4662-9bd4-cb7ae7662348","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":142,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"ae152fba-8f27-4c5d-8bed-91201843aeb4","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":142,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"dce17d70-a5b8-46cd-9553-c3b6916911f0","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":142,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"57773465-dac8-486f-aa19-a05b658339b9","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":142,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"1130c7b2-13b1-4c40-90d5-07cdf31ee326","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":142,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"9160cf01-6098-4960-9db8-aa3069fe9918","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":142,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"d54d2f0b-da34-47f3-919c-83f7226e433b","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":142,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"7a368aaf-c943-4543-9118-97bcf817c95c","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":142,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"d250ed70-183a-4763-ac51-e874f1d6a324","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":142,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"f507512c-a2bd-405a-805b-63dea3154a7e","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":142,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"3ab6c48c-939f-40f4-b773-5c517cda7e0b","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":142,"box":{"x":102,"y":733,"width":686,"height":11}},{"id":"2f3e94f7-daf5-4bed-84c3-de62d0517a6d","block_type":"box","text":"e.g.","page_number":142,"box":{"x":790,"y":734,"width":25,"height":10}},{"id":"212db16f-ed12-4cec-a169-4a69bf015c7b","block_type":"box","text":", custodians,","page_number":142,"box":{"x":817,"y":733,"width":90,"height":10}},{"id":"743e8c55-d4fa-4b69-8ac3-12bc1586fed2","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":142,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"8c80e41d-7196-4e2b-a972-99a8113a8d1c","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":142,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"36547bd6-c4cf-427f-85d9-10118bd68b34","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":142,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"48911547-9676-443d-8295-db82c0618064","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":142,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"7c66c2f8-b6c7-4b64-839c-1315272a8636","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":142,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"acd04a21-7955-4c57-9b49-0e3758651e4e","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":142,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"2cbbd076-7d7a-4f9d-ad5d-e7b50ecab9de","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":142,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"1e795806-164a-4d12-b0b5-abce39d3206c","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":142,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"429a80a4-3ca9-4c20-9ac8-4110500b8244","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":142,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"1a0e581e-1340-407a-be0c-3c312b3f1f47","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":142,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"4642903d-80ca-427a-8564-0f333a5fa038","block_type":"box","text":"II-97","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3dab406e-71ac-41f2-ae6d-f5c5f5dfdab3","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87c7876c-7755-464e-8e6d-ecdd7d601535","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":143,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"965a4d5e-88b8-41bb-91d0-21fc6461aaca","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":143,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"6c81d814-685a-4c34-b566-14c8be3c4a2c","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":143,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"db136ec0-e04f-4265-8f1a-26531bc69270","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":143,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"190ea7df-82f9-42ed-b9ac-cc5142e076d1","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":143,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"aaa31843-cf24-4bb3-ac83-8e31a791ab22","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":143,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"a50dff7e-5976-4b75-80c4-2dc58b6c4ed6","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":143,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"9a0775cd-95d3-4522-8bf8-390a90b63acd","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":143,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"fc334776-29e9-4052-84cb-a6a1f404fe51","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":143,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"16f96687-d8c7-42fb-b4d2-294593a3214c","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":143,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"daad04ca-d803-4774-8007-a4ba36cf533a","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":143,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"b75361db-c967-4c1e-9861-ace298712f70","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":143,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"0c945908-cbcc-4ed2-8fbb-2ff6d66712d8","block_type":"box","text":"provider.","page_number":143,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"314d5d36-8948-4af4-9a7f-256fadade1f0","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":143,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"c0de611e-63d3-45b1-a0d0-f0eadc8bd34c","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":143,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"fecb46df-b1c4-42a3-bf88-349cc4d2e9df","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":143,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"e56d6de7-8f33-4f0b-b43f-7dfd2a7b45d7","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":143,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"89fb7ed9-3521-4e9b-aed7-0cd8c30a78c6","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":143,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"e6278dc9-abb8-4514-a11c-8e6ff7891f70","block_type":"box","text":"PURCHASE OF SHARES","page_number":143,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"0c1a9da6-7f68-494d-bdfe-0d305c4ed87e","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":143,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"13923b7c-bab4-4c5d-8855-78808d10df84","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":143,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"fb7105a4-5459-4e72-9432-4aa4d66d681b","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":143,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"18e9e4fd-b938-4501-8cd3-9ed57073cb2a","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":143,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"6f9a03b7-041a-4dcc-b5e5-4e5d56fd6cd3","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":143,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"790dbbd6-d886-491f-b830-df23acdfb1dc","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":143,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"335233de-6d60-4d91-a2cc-74ea1b36a2bc","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":143,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"5ead97cd-b00d-4ca6-80ec-3bbb7d68e024","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":143,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"c1517d68-b64b-4b5b-96ef-c1669ac16a88","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":143,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"ee044d8f-4e37-4c6c-9bc2-70a55acf14c7","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":143,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"9be1d21f-73c3-4bba-9b03-fa0852353330","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":143,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"8f790a8d-babf-48c4-bf39-aeb50cbc06df","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":143,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"64153a9f-7965-4062-b138-64f8a74df3ce","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":143,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"c7cb8f00-6e56-40c9-a091-c0b2d4c5a0ff","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":143,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"7143bd44-bfbb-475e-b383-dac481abd017","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":143,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"e0534169-9671-4322-be91-9a4dc2cbf543","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":143,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"cf0d1d1b-1bb8-4da0-87ea-40c4ab4e31f8","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":143,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"962392fa-c830-49a3-9128-e71fc186224e","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":143,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"ea3e7cf5-bef5-45d0-bb3e-40aa87fe1449","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":143,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"1b021b52-e6f3-4042-9e48-39196a9d7e61","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":143,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"d202075a-417b-4679-b1ee-6ed897ac4caf","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":143,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"0d3229a0-6966-42fc-927a-65edc87b1854","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":143,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"20b33f05-f6e9-481c-99a5-cf61b589369f","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":143,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"42143d22-e2c1-405c-aad6-4aa47d368980","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":143,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"5fa71825-30fa-4216-ad45-4b2d459eb8bf","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":143,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"9e3fae0f-9f7f-4898-ba04-444e7d58f4df","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":143,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"393bf5d7-439d-434d-b6c7-18c28685d709","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":143,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"cecf1f52-e0a0-4695-9488-baa454c239cb","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":143,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"6932cc7b-e357-44fb-be7d-00032050dfa6","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":143,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"5baceff8-e51b-4847-8ffb-54d7f0f2213b","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":143,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"cc4ccc82-3ecf-4469-a9c1-25ffbdf8f80a","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":143,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"dcb5d7fc-e3da-44f9-9d5b-81b831a3426d","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":143,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"f05308a1-5346-4e3c-937b-44661a7adbf3","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":143,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"86f4c962-1eca-40cc-aee7-c0643bb363ee","block_type":"box","text":"investment is $25.","page_number":143,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"cd25f30f-58d1-4f60-8146-642c454c3dd7","block_type":"box","text":"II-98","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f3f4e7cc-7808-4907-9b53-87dd160af080","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d5b44df-ba04-4d31-8564-4f59c30efe6a","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":144,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"47bcba1d-c444-4584-8c4a-7b0c64cccea6","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":144,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"3b71cb68-e258-45fa-a0d4-65a0bed38ef5","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":144,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"ca7a5359-832d-4bca-876b-678ed2f82957","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":144,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"b0e05f4d-930d-4dfd-8b5c-2c9a65da81e5","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":144,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"48425d6a-04e5-4459-9474-30056b6cf98c","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":144,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"1e96c629-201d-4cdb-8c1c-60c6a44b7f53","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":144,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"42f1b5ed-f5cd-4e03-96cc-df2c36551f2c","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":144,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"d238fa14-28a4-4bc4-b72f-8a478008bf10","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":144,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"2cbf4dff-455d-414b-bb86-4da064dd8bde","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":144,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"2c504b1c-917a-427e-8a90-155f9f269247","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":144,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"1b14dad1-460f-40e3-822a-2b731fd8e665","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":144,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"8850ddd1-3acc-4b7f-81d2-1ec6ede75140","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":144,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"e3b0372e-ecd3-489c-9306-168e97adbe06","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":144,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"2801e2fb-7cd6-4f6a-b258-0d2ff02a1005","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":144,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"af72f1b1-dffc-42d3-8934-3e0598c97f8e","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":144,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"e2454119-eef2-4746-a27b-d890cf7c0281","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":144,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"fd6b638d-57de-4791-b978-f424ce2d5b18","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":144,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"f8564b6f-7f67-4b18-8e91-d74bdbebec58","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":144,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"4cd7df9f-e4d7-4335-bb57-fb858f4e19a8","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":144,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"0811c14b-9e46-4221-aede-662277a8186b","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":144,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"8e4644db-f50e-4cd0-91a2-0dcde3b8829f","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":144,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"5c4f4822-3d86-4742-b65a-9a3dab151127","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":144,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"5dd4024c-2705-401b-9646-3d2d0d1d8d46","block_type":"box","text":"adviser.","page_number":144,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"3817aad7-4309-4a96-b7ce-f6f8785a43fd","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":144,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"d0ccf63e-6b18-4d6c-944f-c6b4ef95ff23","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":144,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"61432427-955f-4da8-bf77-d57576208627","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":144,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"937dca70-8e43-43ab-8a24-49074ed9a21a","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":144,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"fa35e1bc-492c-4c38-bac5-f2f79b8a036c","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":144,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"32e44531-7a13-4c3e-878e-ec24ac6ab820","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":144,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"66a3b291-4bc0-42c1-954e-480714c0c799","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":144,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"51a89f1e-c6d2-48ea-a02c-ffbb68c02aba","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":144,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"f4259d41-931f-4653-9730-25e0f0fff2c0","block_type":"box","text":"also be restricted from making additional investments.","page_number":144,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"015efdd2-7b3d-49ad-a08f-88702d3db920","block_type":"box","text":"In-Kind Purchases","page_number":144,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"aa359ce3-6691-479f-b452-b91300968251","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":144,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"07cab7a9-b346-435a-8a7a-ed7dfdef2f25","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":144,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"3442d2c2-35f0-4505-b8b3-aa104bb0de1c","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":144,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"674462a6-aee2-4db1-918b-cc222a8c52ce","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":144,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"73f5076f-791d-4ebc-9d95-7fecbc5f99ab","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":144,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"a1656481-45ae-4504-b219-c472ddf6b3da","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":144,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"e49bc937-9871-46f3-8bc5-0ae2a677c54f","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":144,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"b3cf3f3e-5f84-41e5-b11b-ee87ac90d78e","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":144,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"8fd368d2-f0b8-442e-bb34-45900432f90f","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":144,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"7fe80585-c00b-4d08-bedd-62a745bca212","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":144,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"3eba032a-eb32-45ce-93e0-55fbf077a308","block_type":"box","text":"has settled.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"3c8d37bb-6d11-4a17-9870-33b655f344d8","block_type":"box","text":"Institutional Shares","page_number":144,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"fa683d63-7f85-4dcc-843b-94bc22dd4a5a","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":144,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"949c0505-06bf-40e9-9ea7-72047d5a4321","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":144,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"10720452-61fd-424b-8eef-7018052f2ebc","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":144,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"577be618-51f6-4fa5-a636-09efe910d0e2","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":144,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"94be5e2b-e110-4223-931c-771b828f8073","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":144,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"285c71f8-51a6-4700-9073-295f447d5e51","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":144,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"2fec4cae-d522-422a-9537-a5c1c02d174b","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":144,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"55bad15e-47e3-43a5-8117-98548f433887","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":144,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"32dd5528-8133-49cb-9ec3-51a5345b0125","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":144,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"848baf43-003e-4bb6-bc64-226c1b3574ed","block_type":"box","text":"II-99","page_number":144,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e5222390-44f4-4b98-a82c-5c4a81e0f43c","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd3842ba-caa1-4d88-92b0-9de5eabf1e41","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":145,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"18edcdbe-383a-4c11-b5fb-086f17e02c3e","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":145,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"1eef1c77-66df-44cf-a9f9-a863be403f38","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":145,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"89bcf4f1-8499-41be-8f66-85937bb1da46","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":145,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"e47b166e-218d-4f1f-87e4-6bd73e66c5ed","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":145,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"6129e31f-cdb9-4cf0-a2dd-6be41a256cd1","block_type":"box","text":"these fees and conditions.","page_number":145,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"6eca195e-6797-4191-a50a-84ad15874d28","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":145,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"089a3bc3-c34c-44e2-8906-7e41d98c61dd","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":145,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"f4e81986-d832-491a-8a2b-a3f0e9d59eac","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":145,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"abf23717-e99a-4619-a7dc-fdda245166e9","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":145,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"5c4e4ad0-6534-44fe-a77b-4ec3c14b8dbb","block_type":"box","text":"incurred by the Fund.","page_number":145,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"965f7d60-97ac-49bc-b19a-05422059feb4","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":145,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"2efc11bc-e692-4c66-9492-d977632759a2","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":145,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"15020868-a522-4dc8-a531-0279c3577d84","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":145,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"e4185105-d52d-4076-92ef-f82e7d838a81","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":145,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"7cc72480-2286-4839-ab97-b4b8834e146a","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":145,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"190bf05b-6ca7-419d-baf6-42248e8df645","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":145,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"9e5c8b8f-8466-4b5b-b4c7-b61fed75fe61","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":145,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"c634c0e8-9c69-4441-aa8b-02a3d3346bc3","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":145,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"f4fdba0c-ef93-446f-b266-3e5a6be8da29","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":145,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"8104d89a-2654-4767-9b7c-6f3821a9e700","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":145,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"f4e63033-3487-40fd-b305-7f7b8a9e7d4f","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":145,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"8a7a6fa0-7603-4a28-8c8d-d87914134b15","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":145,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"4f2392ce-a0b8-44e7-b421-4ed0f7c7ed9d","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":145,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"f821961c-1ce2-42d0-a539-667bb0148cd2","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":145,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"7276a1d6-c036-426d-af10-71db5b7c6307","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":145,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"92ba719d-8626-41b5-91be-cf2548fd5b55","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":145,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"6c823719-3d92-40fa-b35e-bc6dd6a3e881","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":145,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"b815f803-5dba-4b18-8fe3-14423db97e64","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":145,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"3e235438-4533-4fed-af1d-3bcd9538e36a","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":145,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"e8e3e515-bc40-4837-8e01-f93b627d6402","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":145,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"18606519-6bce-43d8-8efc-a69b67f73e36","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":145,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"35795feb-4ca1-4c7c-beca-cfb618c97a25","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":145,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"4e216f57-7766-4c85-8ef9-2a3835c926eb","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":145,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"061d5d12-4081-45bb-ac71-d3192f78a83f","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":145,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"f141a076-5d31-4039-835a-0d998efcc813","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":145,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"989e7c8f-3002-4b74-9b86-13c02c51f339","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":145,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"cbe9efb1-020b-4cc7-877e-113af5d0510c","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":145,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"622575ad-8b95-449c-8044-9264158f7a65","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":145,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"ae8c0a18-8ecc-4210-9fe0-d9ea8aa4dcf8","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":145,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"2c6833f1-0fdc-48a7-8c53-4e42791256fc","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":145,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"cd2f9ff0-2bd7-4209-b515-8032ce9c77a7","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":145,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"8197503b-cd9a-4d25-8ed3-30d6500999b3","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":145,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"177b56f1-faad-4bb7-9d95-68e4b2ecdf4f","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":145,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"529e0d46-6b97-4b94-80d9-7ef5a2d55067","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":145,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"e029dc63-a5f9-4837-b570-ed98e4940543","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":145,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"42ec8f63-f965-4fc3-81bb-e08bb849c573","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":145,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"b4e633ed-f308-4259-9b77-ac1f71e9118e","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":145,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"68d7573c-b0b1-42e2-84ba-0dc40620f18e","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":145,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"0e210622-11b1-4c1e-b7c7-675f8242a944","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":145,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"b1a80a28-7a60-4574-9623-aff0e5627198","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":145,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"76311381-f694-41d4-99b5-d98a4b005ffb","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":145,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"3a216fed-c9e5-4c99-8b7a-bd30575e8675","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":145,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"30e9ad6e-5394-44ab-8617-bb7ba1da8ac1","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":145,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"29a1b077-9afd-4971-8a2f-300f5da89c9f","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":145,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"ba4d96eb-ee7b-4a8f-91bf-78fa22e95492","block_type":"box","text":"II-100","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f310a3ec-953f-4c47-911f-2df339e8b5ad","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4a97fa0b-95fa-4210-a892-d7629f5c7dac","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":146,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"5c8bf4e1-11bf-442d-b207-2558ceb0080d","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":146,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"e965087c-2815-4171-ad5e-69c2d339c46d","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":146,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"0fb28ed5-1977-47af-978e-05b1c2a58003","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":146,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"b38f281e-480e-419e-9803-0a602b183fe5","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":146,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"019ed000-55b7-41b2-91a8-7844d76b4c29","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":146,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"52d2d133-796a-4aae-9618-d61f9adf6fef","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":146,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"8e93640b-455e-4c63-8ab7-737ffa2851b6","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":146,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"da6b87a4-60b2-4d01-8142-a8eb11a7d740","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":146,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"06f115b3-48ca-45c4-8f32-39dc433197b4","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":146,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"de6f3d71-b365-4ef9-8618-6279b0ee9216","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"2228f135-2228-4415-b1b3-b9a63b09df37","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":146,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"0b64fa40-7a1d-4fba-b18a-baa66578d648","block_type":"box","text":"periods indicated.","page_number":146,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"d40ced6d-0c93-4d1c-ae77-62e2595e54a8","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":146,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"0ba9e52d-5cb2-4341-9116-385185821c01","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":146,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"e64a6214-048c-4962-ae5c-c62658b5cd75","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":146,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"fa43833c-ce20-47de-9b88-f923efb3ec9b","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":146,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"1c4fd9a4-12a6-499e-b842-136e11b1fd45","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":146,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"768189b7-617b-4c11-a570-f28bb482d591","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":146,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"be7e3a9f-0608-44f5-8eb6-6e9623aecee7","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":146,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"4c3fdad9-d3ad-48bf-9854-dabe6c195a81","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":146,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"b4454c4c-e768-481d-9812-31782b05afe4","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":146,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"a91e541f-ec84-4c6f-adbd-41b00d0942f5","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":146,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"95ecbc87-1435-4da2-b5ad-5127d2ddb33e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":146,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"c43adc44-db13-4d30-b326-00ddb7815f4f","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":146,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"ab9dbabc-63af-48fb-93b3-e07fce0f8e1e","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":146,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"4e97b70d-e936-4dc4-886f-d190fb3fc2e2","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":146,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"e04d8a58-be69-400d-bb35-938700adf4f2","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":146,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"197ab444-ae9b-49a8-b1d6-f52c0b76e20a","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":146,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"b891e9b4-cd6c-4257-b269-8df62b47452b","block_type":"box","text":"Reduced Initial Sales Charges","page_number":146,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"f11f59f7-8726-458d-8f3a-0c2ad7d5c34b","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":146,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"0803a9df-f08d-4d83-bdd0-91859baebcac","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":146,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"6f8158ca-a677-4b28-81e5-3d6ca8e47a44","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":146,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"448c7afa-302a-4d9b-9593-9d9a84e49341","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":146,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"5bb71a0b-684d-47eb-85dc-e36a5ebc92ec","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":146,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"26affaf3-466c-4c7f-941c-ddfa3caace5e","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":146,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"97f108e3-fc3a-4bd2-996d-726045dd13be","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":146,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"b81fafac-01d3-4550-af19-c2417bdb1b63","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":146,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"05effa6f-53bf-4e6d-bbe8-ad85b1d416c6","block_type":"box","text":"Reinvested Dividends.","page_number":146,"box":{"x":102,"y":703,"width":156,"height":8}},{"id":"cdf23193-3cf0-4073-84e5-b49815d6dab8","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":146,"box":{"x":265,"y":702,"width":566,"height":12}},{"id":"d5eff939-1c66-4428-964f-ac69894ccc6c","block_type":"box","text":"reinvestment of dividends.","page_number":146,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"b027f2ce-5a1f-4cf7-bb1a-826e7fee7261","block_type":"box","text":"Right of Accumulation.","page_number":146,"box":{"x":102,"y":740,"width":158,"height":11}},{"id":"89ac8be5-ba90-4599-b56d-20c1a0d8acba","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":146,"box":{"x":267,"y":740,"width":574,"height":11}},{"id":"ce27a441-df42-42ec-94e1-bc15aabdee46","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":146,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"3afd99a0-a705-411e-b14f-94bc18e6926a","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":146,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"32b45b9a-e755-4b83-b2d2-bd02b22776c2","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":146,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"836bb804-5078-42f9-af59-c05c0d26952e","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":146,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"35709a5e-7449-4279-b75f-185ff13e4c47","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":146,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"1ead144b-ab5c-49b1-b176-8a4219bb9c52","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":146,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"8124d7af-bda5-41e0-bc0b-1a2dd67e1eca","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":146,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"a121146f-5b86-436b-a33e-c803afaa6a11","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":146,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"5d7ab642-6a3b-4379-a57f-56535aa99c74","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":146,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"d68df52f-2c5e-44c7-a128-430a211eba14","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":146,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"18ca762a-4a73-4d32-a8a1-fcf0f596feda","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":146,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"cac9cc9b-2ea1-4edf-8a06-6e4a772b7ef4","block_type":"box","text":"II-101","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e22cca76-c0b0-4a51-8453-ebbc027d4e59","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c5848aab-5cb3-4d40-91e3-b6341bb578ff","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":147,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"102fcc1a-fb06-46c4-9454-1d23d24116b0","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":147,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"9887cda4-b6d2-4fae-9793-acf82f8e50a0","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":147,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"d3ffecb7-b292-4d11-9d1a-0fc97f83c440","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":147,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"a3308fd7-7f98-4c69-9a70-5204859ff7be","block_type":"box","text":"Letter of Intent.","page_number":147,"box":{"x":102,"y":113,"width":109,"height":9}},{"id":"444cb94d-d600-4973-bc0c-004ea0c24bcf","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":147,"box":{"x":217,"y":113,"width":681,"height":11}},{"id":"32df81f6-eea1-44bf-a52c-438d12c45796","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":147,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"31e4e80b-1d34-4ad7-90e1-e5da1ebe06e3","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":147,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"0d430f4d-bc1a-4335-836b-de6ffff815a1","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":147,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"a839b8a3-ec0f-42ba-a05c-1c54440b5a64","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":147,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"4ec1cbea-a511-483a-9f29-af9aec5873e5","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":147,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"e05a5d21-36c3-4754-a5bd-c7446cc156a9","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":147,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"7167b8bb-8ba6-4b78-8c96-9516f541ff74","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":147,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"86282a73-66a7-4fc7-845e-ea0f18def0fb","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":147,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"f9bce741-90b5-4450-aa3c-b45d7ec98381","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":147,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"9313a843-e769-43a7-b773-0f9db1e1cbca","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":147,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"fcce0447-4671-41e0-9eb8-a087334bac3d","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":147,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"7935ac10-6c91-41bc-a865-4da7e11edb9e","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":147,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"4d806a8b-325e-41a7-a366-1896fe4076ef","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":147,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"9317996e-bada-4667-989b-83226dad66e3","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":147,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"a6ed40d5-d2ca-4af4-8d92-c69586b74913","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":147,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"3e1e8f7e-95ad-477e-b210-3bda47451d6a","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":147,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"d60e6e1e-49ca-44b5-9780-b9b3731d408b","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":147,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"943dc1f7-f111-4398-9b24-566e15d0b6db","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":147,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"2af1c1aa-9ee1-407b-b28c-02bea1a928dc","block_type":"box","text":"Placement Fees.","page_number":147,"box":{"x":102,"y":408,"width":116,"height":8}},{"id":"f0d34e45-5cc5-4a9a-be11-3967e4facd9a","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":147,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"56e342cb-8383-4915-97aa-878dff1a3ab4","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":147,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"0d9c4917-3372-4324-8233-13ba1d93cddb","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":147,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"83373547-f9cc-4bee-a905-6ce40316cc33","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"ba3f78a6-e741-40d7-8dae-5c1a1daaff19","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":147,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"a04a12aa-912d-4c9c-be27-175b08b9bacb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"dda8187c-b772-4569-b782-cebe023bca44","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"4574c5c9-271f-4507-8dc3-5bfcc99c8f50","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"a6082e98-3ed5-45eb-beec-9156b24df39e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"b41d421b-d930-4564-8606-e475563ec329","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":147,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"cfed7fd0-06b0-402c-b5b7-7e88593fbe01","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":147,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"dcf92bcb-9ff9-4190-bc16-ab66c071c344","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":147,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"9a303c8b-c05b-42a8-a87f-b2cb15430148","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":147,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"8c994adb-16d4-4f04-8498-e0ef8db55012","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"50a35237-737b-4e53-8b3f-30a2fefce448","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":147,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"82d5dd73-e1f2-4309-945c-8d8e947756db","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"35486f90-37fc-436a-a6d2-b3e0854e4f89","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"9276c18e-965d-49fa-8122-d91ad982f93b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"f9d1ebf8-ac2a-42a6-a912-f0003d4da369","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"b359fe69-ceb9-4b27-b70f-59fe65a5e3fb","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":147,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"9190e20d-c896-4395-ba51-5a8613868205","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":147,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"21a69afd-ab3e-4ea6-9421-9101a2f3a4a6","block_type":"box","text":"SM","page_number":147,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"64617dda-0d24-4893-b653-6833e9b4020b","block_type":"box","text":",","page_number":147,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"55b59356-94d2-4142-a250-63cc4db8b24e","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":147,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"3c77ddfb-916e-46d1-9f3a-69210e31139c","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":147,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"893aaf41-e719-4433-9f11-ea16487a9644","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"ca17f19f-e92f-421b-8439-36c66a7155fd","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"30db3463-14d3-4547-8067-1b4059a102cb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":147,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"38a7a9ca-854b-4c4b-9bb1-2e9599a5bd1a","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"c5d5f748-3b3a-492b-bf00-be643fbd0f72","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"76b2b8bc-e4d4-4563-b38b-0a2c8d00812c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"1da304e5-54dc-4769-b9d0-c36f0cf9aeef","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"68cf3d8d-7754-4e42-8c35-0708ebacc05c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":147,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"e1363c1c-c05d-427b-8408-eae228c5bdb5","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"20ecabcb-91ec-422d-ae3c-b57e91cfe30e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"c1fbbf93-a59b-4baf-b642-9a6079f8aee7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"64007bf6-44b5-4bac-91ee-a7e881b5c34c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"ebf710ee-53dc-4842-9fbe-dc60da89ddd5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"2535ac7f-8f5a-4aa6-adcf-908df45cf9fd","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"a213f7ea-681b-4747-b98b-abe7a88abb59","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":147,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"fb4c023a-bba6-472f-878f-3ce9316647a3","block_type":"box","text":"II-102","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5fde5e36-249c-49d9-bc7e-cc113b2ece95","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfffb31b-5f04-4111-8f41-c0383d77dd72","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":148,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"a55d26ad-5679-485b-9fa1-e4680fa3ac37","block_type":"box","text":"may be up to the following amounts:","page_number":148,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"c31088f0-3b15-43e2-96d2-d1e1086a551a","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"6366fce2-56f2-4a9c-9749-f6b6e08c72c6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"6854c912-8ead-406b-aa7a-210fea4641dd","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"5ab33d40-5655-4ab5-809b-69f3ed6ab7bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"f2980550-d21e-4921-9c13-c8bfece95c56","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"6851d6d2-11f5-41fd-9670-8da587d02128","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"acb0e095-c4e4-4080-a175-a6f22ac3e16b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":148,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"179443a1-b15f-4e5a-b78b-72ad649a151a","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"a91cb96a-1934-47d5-a53b-54678c84e57c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"5f1a42ba-c861-4048-b1c7-36c81f51257e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"5b8e365c-2c96-421d-b3d5-97b758065838","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"678f944f-edb8-4860-8ff6-2066d1886d86","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":148,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"7a4d38a2-29f8-46a7-9910-2c947936c57c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"a2c269f1-7aae-4035-8910-a6ffe25e02af","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":148,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"d91c6f71-0296-46f3-b5fa-237a5b93c47c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":148,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"66442453-e8b5-4c1a-8f8c-dde948695f99","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":148,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"575de1e9-8cd3-4b88-b353-7211449547e3","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"0c2ebbc1-7b52-40df-bcf5-ae788d09e644","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"e0436cd2-7d4c-4fe3-a5b5-586ef3d9d060","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"15a171ee-bcf2-4ae8-8ba5-b46bdde356c3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"c2a3e3c2-6567-4dc3-8cd0-77d29afcb494","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"94930759-30fd-4faa-816a-17ad2de7569a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"9105e650-2d68-401c-9dd8-00c7f7d0ae88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"373643eb-0ed2-4088-a19e-60ed17c32478","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"ee0a508d-0d53-4285-aa5e-700894eb7e48","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":148,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"d526d7be-7dff-4a61-8c1d-9ee1fc5f7206","block_type":"box","text":"$250,000 and above . . . .","page_number":148,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"b8c7ae28-60a1-454e-88e2-a189c28309cd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"f6867207-4d6e-47db-97a4-94188ca6a94d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"c72de074-d727-4f0f-9e28-d841be453a56","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":148,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"39f29c44-2dd4-4008-bba3-30c2b0ecc953","block_type":"box","text":"the following amounts:","page_number":148,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"10ef526f-f936-4b7e-9953-2f3ff9951647","block_type":"box","text":"$100,000 and above . . . .","page_number":148,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"e303dcb7-dfbd-4263-ab8d-106f78045745","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"6a02977f-fcbe-4c1b-819c-139e44d61d34","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"fc07868c-b690-4a5d-aa54-020a6a9ec289","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":148,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"04abdaa9-a391-49fd-90f2-8e230c5a994c","block_type":"box","text":"$250,000 and above . . . .","page_number":148,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"cd595d17-671a-431d-a252-1854e860ad98","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"98164ec4-2b79-40f2-9674-3e8301804c66","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":148,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"bfbad4f8-9555-4fa2-a956-f51e14323565","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":148,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"d2dfdd78-3852-49de-8a87-594b96c6c22c","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":148,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"45f575b6-54f0-4ce6-967a-3ead46b13509","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":148,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"7235c92e-1d3f-4619-8766-e884349d9ed4","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"f0cbf098-0fc7-4b4c-9b6d-6855e0613038","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"7474ee0a-ca5b-426b-a6ad-67966c10529c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":148,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"4c6c4196-184e-49b3-b93e-798e95aee9c7","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"4ce0864f-fee9-4c27-8e79-22cad782110b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"673b888d-29c1-498f-8d6b-3d1a7e6263f8","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"d8682a95-3c37-48af-9d39-672e79ae53e8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"328c335c-8dd1-475d-8e10-dbee0f3ff7cc","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":148,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"5c4070de-0dad-4c80-9254-823cd31674db","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":148,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"71ceccd8-278d-4e34-817b-5494209c5d7a","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":148,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"11585187-b6ae-4e31-a922-cf5aabc4e9bf","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":148,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"678ba9f6-346f-4693-a0f6-e6672f7d2a24","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"9097586e-61ca-461f-966c-c00278ee4241","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"de19de98-5aa5-4adf-a850-098f2d88f509","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"aea13be6-4bb5-46a0-ad60-b61e696ec760","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"9f791155-b4b3-486a-90ee-ba3d16594fd1","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"2aac1b55-068d-4818-b79a-309943453cbd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"b74d89d9-ba98-4a62-96b4-42130fa1492c","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":148,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"07f79799-0147-4aa9-98d2-c2618bda92d4","block_type":"box","text":"®","page_number":148,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"eeaede4d-2340-4787-aca0-74cb72a37dfc","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":148,"box":{"x":513,"y":836,"width":264,"height":10}},{"id":"3f72fb3c-ac26-4c58-a08d-79de0ee9e303","block_type":"box","text":"®","page_number":148,"box":{"x":778,"y":836,"width":6,"height":5}},{"id":"691dbfa3-c4a0-4551-998e-90b29454da3d","block_type":"box","text":"Index 2035","page_number":148,"box":{"x":791,"y":836,"width":79,"height":9}},{"id":"196f8bb4-a538-43f2-a0f7-e9078ad4c6eb","block_type":"box","text":"Fund, BlackRock LifePath","page_number":148,"box":{"x":70,"y":851,"width":177,"height":10}},{"id":"83d766b9-4515-416d-89e9-f37a429b43a1","block_type":"box","text":"®","page_number":148,"box":{"x":249,"y":851,"width":6,"height":5}},{"id":"e031cbf5-6f5b-464f-ad0c-2b48de6ec33b","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":148,"box":{"x":261,"y":851,"width":265,"height":10}},{"id":"ba3733e9-b9fa-46b8-884e-94ca545de192","block_type":"box","text":"®","page_number":148,"box":{"x":527,"y":851,"width":6,"height":5}},{"id":"7c294abb-a458-4e7d-b1f7-1436c3f7f37d","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":148,"box":{"x":539,"y":851,"width":265,"height":10}},{"id":"1761f983-6a13-411a-aaeb-e2ba43d91c53","block_type":"box","text":"®","page_number":148,"box":{"x":805,"y":851,"width":6,"height":5}},{"id":"46ee8276-eabf-4ee7-a02a-f856ecde644d","block_type":"box","text":"Index 2050","page_number":148,"box":{"x":817,"y":851,"width":80,"height":9}},{"id":"8a01b086-7112-46c7-babb-ebaae8629368","block_type":"box","text":"Fund, BlackRock LifePath","page_number":148,"box":{"x":70,"y":866,"width":177,"height":11}},{"id":"d366dddf-d4fe-484a-b49f-9a8d65475bf1","block_type":"box","text":"®","page_number":148,"box":{"x":248,"y":866,"width":6,"height":5}},{"id":"91d13dde-f269-40ac-96e3-a9945b39cd84","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":148,"box":{"x":261,"y":866,"width":263,"height":11}},{"id":"1320dbea-169f-4ce9-acae-5ba03aab3aea","block_type":"box","text":"®","page_number":148,"box":{"x":526,"y":866,"width":6,"height":5}},{"id":"cfceafcd-155c-47f9-b208-60e53b0dd196","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":148,"box":{"x":538,"y":866,"width":264,"height":11}},{"id":"e9b89f58-673b-49e0-9665-8bec16eee47f","block_type":"box","text":"®","page_number":148,"box":{"x":803,"y":866,"width":6,"height":5}},{"id":"908d3ed2-6f47-4bc6-b097-4c459fef2db3","block_type":"box","text":"Index 2065","page_number":148,"box":{"x":815,"y":866,"width":80,"height":9}},{"id":"002b0836-4ff2-42ee-8d41-dba1171cb114","block_type":"box","text":"II-103","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4684ee58-8267-4694-8a2e-ca0af4b8d77c","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0b12ae7f-ad28-4fa1-8cd3-e6234e32282d","block_type":"box","text":"Fund, BlackRock LifePath","page_number":149,"box":{"x":70,"y":45,"width":177,"height":10}},{"id":"4b472db4-878c-4840-abb2-4fa40cf8e5f0","block_type":"box","text":"®","page_number":149,"box":{"x":248,"y":45,"width":6,"height":4}},{"id":"4455e1fb-64b7-47d9-9d3e-68d592ebd1d3","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":149,"box":{"x":261,"y":45,"width":290,"height":9}},{"id":"d9205a2f-71dd-4f85-8568-68c92249ab4a","block_type":"box","text":"®","page_number":149,"box":{"x":552,"y":45,"width":6,"height":4}},{"id":"d3905b62-2511-42f3-a9b5-3896184984b7","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":149,"box":{"x":564,"y":45,"width":324,"height":10}},{"id":"486b27b1-4abd-44ea-9e06-c4cb348f09df","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":149,"box":{"x":68,"y":60,"width":401,"height":11}},{"id":"a272f1bc-3f2c-4239-b9d1-10b273b936ef","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":149,"box":{"x":167,"y":87,"width":206,"height":11}},{"id":"f94e6bfe-dd0f-4eec-a355-dce36a73a7ca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":149,"box":{"x":380,"y":88,"width":443,"height":8}},{"id":"5bacf29c-55bb-4c76-82a3-502be2bdf991","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":149,"box":{"x":101,"y":111,"width":657,"height":11}},{"id":"5500fd37-1469-4bde-8085-3c836c319fcd","block_type":"box","text":"SM","page_number":149,"box":{"x":760,"y":112,"width":10,"height":4}},{"id":"1ad74b24-ef17-48a9-b81d-95720124a79c","block_type":"box","text":", the placement","page_number":149,"box":{"x":773,"y":112,"width":110,"height":10}},{"id":"99933b3c-c75b-4617-a8d9-706c7c896d3b","block_type":"box","text":"fees may be up to the following amounts:","page_number":149,"box":{"x":68,"y":126,"width":294,"height":12}},{"id":"f5fd95d1-7538-4200-ab2e-3727aaa5ed7f","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":149,"box":{"x":167,"y":154,"width":206,"height":11}},{"id":"0b9b8107-6073-4869-a075-301aa552d8cb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":149,"box":{"x":380,"y":154,"width":443,"height":9}},{"id":"dcd0ac3d-ac9e-4b71-8081-549bfb7cf128","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":149,"box":{"x":101,"y":178,"width":787,"height":11}},{"id":"6764b911-ae61-4503-89d5-be18614c644b","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":149,"box":{"x":70,"y":193,"width":808,"height":11}},{"id":"6790a7a5-3e77-4dc1-b437-83679639a41d","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":149,"box":{"x":70,"y":208,"width":393,"height":12}},{"id":"7cce175c-f382-466c-9bcb-59da5ca7d9f4","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":149,"box":{"x":102,"y":231,"width":740,"height":11}},{"id":"a507b945-fb73-409e-b20c-e1899bb2ebe6","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":149,"box":{"x":69,"y":246,"width":823,"height":11}},{"id":"21aef8d6-3a42-4aff-92bf-003e4b9cf836","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":149,"box":{"x":68,"y":261,"width":780,"height":11}},{"id":"6a709e95-72bd-470a-8684-5325efecabb5","block_type":"box","text":"$1 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has entered into a Class A","page_number":149,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"728fb91b-9e83-493d-ad19-5a208e2a6d0e","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":149,"box":{"x":69,"y":405,"width":836,"height":11}},{"id":"961cadcb-9c9d-4a1b-9f77-9a9aa4b3748c","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":149,"box":{"x":69,"y":420,"width":793,"height":11}},{"id":"0026fcb1-9772-478e-a0a3-61ac2e7b75ec","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":149,"box":{"x":69,"y":435,"width":811,"height":11}},{"id":"94544742-16ff-4945-b330-c2583dd5a5fe","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":149,"box":{"x":68,"y":450,"width":827,"height":12}},{"id":"beeff47d-1238-4769-910c-f1b06342c76e","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":149,"box":{"x":70,"y":465,"width":782,"height":12}},{"id":"89439e63-8c87-4ef2-b2ed-f03dd98b2aea","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":149,"box":{"x":69,"y":481,"width":830,"height":11}},{"id":"9085fed8-e9c3-4117-aca3-16c5a8e2cc4c","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":149,"box":{"x":69,"y":496,"width":815,"height":11}},{"id":"99e82310-da61-4199-92df-a2230e5df037","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":149,"box":{"x":70,"y":511,"width":799,"height":11}},{"id":"011be359-bb97-4b4b-80ac-ee63cfbcc42b","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":149,"box":{"x":69,"y":526,"width":752,"height":11}},{"id":"6e36b1c4-3abf-4727-baca-1fe142f1f952","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":149,"box":{"x":70,"y":541,"width":836,"height":11}},{"id":"e1d063bd-a39f-45b8-a2bf-37f610c18471","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":149,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"7a2725e8-4070-4aae-ab74-d158553895e7","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":149,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"d71ee439-8eeb-4a3d-b201-8c456da217f2","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":149,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"2a5672a5-3078-4730-a01b-e46ed88bd2c3","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":149,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"0bc0a131-15e2-4827-a41e-6cd9d327c6fd","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":149,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"fd75bb81-3ed2-4ef7-a101-d45ad252c395","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":149,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"0c670438-dc8a-459e-a1e9-328f83c6fe4a","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":149,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"02bbd245-a9f9-403a-ad60-b75c7bae4cdf","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":149,"box":{"x":70,"y":662,"width":808,"height":11}},{"id":"93108669-3aeb-466d-a8a8-8a5dfd5adb29","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":149,"box":{"x":69,"y":677,"width":837,"height":11}},{"id":"5f86f64c-1cae-40c7-adee-e311d33f78e3","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":149,"box":{"x":70,"y":692,"width":820,"height":11}},{"id":"bfe75ba4-189d-4dbf-8eda-de9ad5f9b7d5","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":149,"box":{"x":69,"y":707,"width":813,"height":12}},{"id":"3359118d-ccb4-42b8-834d-72eda4bfabc1","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":149,"box":{"x":70,"y":723,"width":831,"height":11}},{"id":"51319db1-3df8-44a7-b877-10bd55450fb2","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":149,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"19382494-d4b4-4184-bf11-bec4e446cc2e","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":149,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"24498296-1e81-46b7-a93e-58c779fb7ca9","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":149,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"0cf7c89b-4780-48ea-84f7-37e458603682","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":149,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"1a9740cb-b6eb-4724-a2bd-02e868a1209d","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":149,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"01a5011f-4171-4030-96e1-599841396bba","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":149,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"6a7c8a3c-b6a4-4234-90d6-bc17c741a220","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":149,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"9f666f72-a8aa-4c2a-9211-91cc946ea8ed","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":149,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"0f65f8ff-8d91-4a2a-8e9b-aa570e1b3e8c","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":149,"box":{"x":68,"y":866,"width":835,"height":11}},{"id":"c51743bf-24db-43ac-b0b0-af195e47554c","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":149,"box":{"x":69,"y":881,"width":813,"height":11}},{"id":"f147f63a-2dd3-4315-9105-b2a98989f642","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":149,"box":{"x":70,"y":896,"width":792,"height":11}},{"id":"bc406179-20e4-4131-8882-98fd1936b296","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":149,"box":{"x":70,"y":911,"width":813,"height":12}},{"id":"8d8531f4-101c-41e1-8248-c556968cd30d","block_type":"box","text":"II-104","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"882290bd-35bc-4699-b2e8-aa95e3a20b01","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bc1fec0-4b84-4505-91c5-464cdef50858","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":150,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"8bd16338-2945-4a39-91af-bf3d438139ee","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":150,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"f4befbd2-a0b6-49ed-a79a-02cadd96215f","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":150,"box":{"x":69,"y":75,"width":736,"height":11}},{"id":"f7378273-08b6-475c-8954-d4289fa9529e","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":150,"box":{"x":101,"y":98,"width":763,"height":11}},{"id":"48f90a26-d901-4fc5-836f-3395aa48a0a9","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":150,"box":{"x":70,"y":113,"width":782,"height":11}},{"id":"ee27916d-cacc-4e48-84a2-d781b951bf69","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":150,"box":{"x":70,"y":128,"width":832,"height":11}},{"id":"be2c2218-a170-4d4a-87b3-a41a2f29fb31","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":150,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"9de6955d-a498-4762-ad8f-764fb671b365","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":150,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"2f75a92e-4b8f-4a96-98bf-f07d4d8b16b4","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":150,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"8834299b-352b-432f-bad8-b005c2bd8aed","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":150,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"728fffbb-d813-4a6e-a9a1-6b92647ffc51","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":150,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"addb2056-0c2e-4082-9546-75058dd97922","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":150,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"7ad34f23-6380-45db-9cda-f20881ea78fa","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":150,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"506c3716-175a-4c87-89f0-9cded9c72307","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":150,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"4c20d8df-d64d-461c-9dda-3e7b798dc7ba","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":150,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"fefc70db-df6a-4e5b-9af5-f33fb8b73a68","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":150,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"776c419e-2746-43a7-a9f1-54aa99f9dbcf","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":150,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"50859703-3965-47a5-b1ba-80d19135a718","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":150,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"a88f40ce-719e-4cba-a082-91a1362d7c70","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":150,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"00799b3a-d1e8-4600-93b7-227417a0b36e","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":150,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"cedff6e6-6fb0-4b72-bba4-5f17782b453e","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":150,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"29a205e3-7cfd-43be-a295-627c14f13d6b","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":150,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"85afdad4-da9e-4347-bf25-113c27f2166b","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":150,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"59f87680-c83d-4702-890f-7835b868d6f7","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":150,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"ba9237dd-814a-4dfb-985c-9bd221784f58","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":150,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"b3b46219-ed1e-4133-931d-a52450f5d4aa","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":150,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"bf5ddafb-f21f-4076-95e7-06eba127b094","block_type":"box","text":"the absolute discretion of a Fund.","page_number":150,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"b0f30e75-e396-44bf-98a9-bdd328596eb6","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":150,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"c3199e0d-c848-465a-a66d-c766bbb9f788","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":150,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"24116003-4095-4646-90f8-a186e0fa20b2","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":150,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"af68832c-a074-47e7-9106-29305cdfcae1","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":150,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"1c01acd3-92df-40fc-955e-e41391074ff5","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":150,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"2fd2e4ca-026a-4508-bd87-f6f3f61c0919","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":150,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"90fa2ec6-5cb2-4d4b-bbc9-67db436719a5","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":150,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"d4f684b7-bac2-4df9-bde5-82ec94241e16","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":150,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"c3edc4bb-f447-4328-affd-83a103bc36d5","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":150,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"636ac279-9053-4ad4-a42d-642b80a12713","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":150,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"2f7ca396-647c-48a2-8f4b-eafbbd8dfe60","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":150,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"7fccc9a2-c23e-47f1-a700-d48782d95212","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":150,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"b9a1f364-f3c0-4786-86ec-3b64fba46049","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":150,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"83fae825-5020-41e4-afda-640f65723c14","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":150,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"a54b9bf9-a536-43b6-9bc6-76e7002be121","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":150,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"4c93f3ce-9b6b-4e9d-b6d0-430dcda0fb5c","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":150,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"172d645e-0161-4735-9674-b08b16498fe6","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":150,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"0ba72558-c5ab-4042-a507-ba2f59e33215","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":150,"box":{"x":101,"y":748,"width":326,"height":11}},{"id":"37e831b6-49ea-4991-9a66-0ae126ab0fb4","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":150,"box":{"x":434,"y":748,"width":413,"height":11}},{"id":"733050ea-6aab-4ff5-8f2d-c6974f69c99f","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":150,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"2d4f7876-8878-4360-8782-789d519429a6","block_type":"box","text":"public or private investment company.","page_number":150,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"1e5ec0da-2467-4479-a983-99384bdd5a3c","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":150,"box":{"x":102,"y":801,"width":372,"height":11}},{"id":"9ba5d536-1965-42fe-8191-2f57fda1e6ec","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":150,"box":{"x":481,"y":801,"width":421,"height":11}},{"id":"5f29aff0-22ae-4dca-a171-19ba423a475d","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":150,"box":{"x":70,"y":816,"width":825,"height":11}},{"id":"f3fc8d91-fc9d-4023-9b65-f413c96d566e","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":150,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"0dee3801-5e7e-4d09-a200-bc7d1f50672b","block_type":"box","text":"II-105","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2d34cf38-b105-406e-8c24-eb18077b94b2","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4a8556a-a00c-4dbd-b2a8-7aa455be5f9d","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":151,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"4373c07b-d588-44f6-9b3a-a6e62d224ccc","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":151,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"93d972bc-9ffc-4717-857a-d012611c5640","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":151,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"85651e56-ead0-4d0f-b772-4d2322da1e20","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":151,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"f0dc61cd-be4f-4667-ac64-a5593ae0df95","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":151,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"ccc9c627-b518-4a0c-a80c-7e55310c08d9","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":151,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"5d5299aa-c9e7-4403-8814-93dc9f47bf65","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":151,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"e90ab02e-f127-4fa0-9e31-6dc342ef57cc","block_type":"box","text":"intermediary associated with the account.","page_number":151,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"d2ee50b8-39d4-4382-80ee-037ec083c1a9","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":151,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"dbd627ce-fb0f-4e81-8620-14f69f2fa4bb","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":151,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"656e2719-eeb1-494d-8c85-9b56a71e2d04","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":151,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"13b0e284-cd1f-4fee-8d22-d0d01fa684ec","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":151,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"a1a8caf4-ed75-42ce-9700-3e4ca1cb10fc","block_type":"box","text":"CDSC shares.","page_number":151,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"7ab406cd-5b73-4513-9e1b-b0b8cac67c64","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":151,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"45525717-6314-499c-a263-76e5871bd3d4","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":151,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"ca4e741a-e591-4e01-9407-fdb787ad6ade","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":151,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"937aa5f6-f665-4bb2-b35d-11fadd527eaf","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":151,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"9523ddb8-5f9d-4144-9a56-47df9a2c84d2","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":151,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"1498aace-d978-4810-a8b3-0d5e628214a4","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":151,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"25629240-04a3-40c7-8429-db199d5e1b9a","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":151,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"f012190a-0a43-4e9a-9447-75e55099a6d1","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":151,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"a13328e4-3a4d-46bb-ba53-9be8a260e7d8","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":151,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"f21fdc06-5bc1-4ebc-876f-b0629b621253","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":151,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"95622783-5015-4545-8f71-8f8421ea0473","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":151,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"a63f5eb3-6ea3-4f57-ab3d-1ff79faa527c","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":151,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"47e315e8-dc23-442d-bad3-c89076d69905","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":151,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"d6acf501-9f54-42f4-9607-4a633c5e1b1b","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":151,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"9eef55c3-b8f2-43fa-9f5e-0bff9c161bef","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":151,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"3ed6f303-64e8-4487-a3e9-6382c75e12db","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":151,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"18a7ed5d-3f99-4a9c-a94a-ac376757d29f","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":151,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"da528c38-6f41-4ad7-8e23-774d58c3f059","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":151,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"25b23159-274f-4ac4-94bc-f241848e87ba","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":151,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"fade5ac4-255b-4223-bc45-695e6cdaaeae","block_type":"box","text":"Investor A Shares.","page_number":151,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"3a85d0cc-8d03-47ac-9faa-8afc9ed5af75","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":151,"box":{"x":102,"y":604,"width":378,"height":9}},{"id":"a6318fef-4c7f-409a-bcda-aa791a3b0602","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":151,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"3bddc207-9419-4aa1-9a90-3dffa2c29562","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":151,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"2cc7e54d-286e-4176-bad2-afa7f2fe5f18","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":151,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"27cede69-518c-438c-ae62-1cb105c4fdb3","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":151,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"acb37e8d-265e-4b25-8543-e6e76efda4cd","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":151,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"59e1aafe-b1ed-4628-b568-66a6031e0024","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":151,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"a7436f88-e3c3-43e5-a0a4-c9d8a13c2945","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":151,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"a4e7de68-715b-4ba9-8353-e17d1c247ebb","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":151,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"b20a87b9-b049-4332-9006-434c1acd1a07","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":151,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"ef279af5-fbfe-4227-8613-b086d1c76fab","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":151,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"8c27b80d-c1bf-4099-9155-4e6fba3613c0","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":151,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"b040fff7-3676-40e9-ac18-ce045ba4a22b","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":151,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"7800b67e-e07d-420d-a0e3-8bf2a197ab7f","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":151,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"b963e19e-6fdc-447a-b0a3-5affdf8a136c","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":151,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"948e6bc9-4890-425d-8c88-bff65680f191","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":151,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"3d95d18c-9b16-4aa2-9ae3-15b3e4a415d8","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":151,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"2e0a9dc9-ee8f-4f3b-9a16-c00e715948ed","block_type":"box","text":"“Investor C Conversions”).","page_number":151,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"1e230327-72fb-4211-ab59-4686bd37f0c9","block_type":"box","text":"II-106","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8e6eb766-5255-4827-8f1e-d2461be83bc4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b81ac700-e2c3-4111-8160-0ca210bba38c","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":152,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"32833886-6931-4155-b580-22d5c2cf7697","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":152,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"70cd0b9a-eea0-4536-a1b9-33f2b955efd6","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":152,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"05aa376a-ea1e-4c79-9083-dd45c274431f","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":152,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"9883c067-4dfe-4de4-b7d1-da6edc1bd805","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":152,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"8357c968-fb11-4a17-b9b0-67d20128c8e0","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":152,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"81ae5caf-080f-446d-a867-2842347a9700","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":152,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"8f455331-0010-49ef-8f1f-35457bd2801c","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":152,"box":{"x":102,"y":158,"width":396,"height":11}},{"id":"b6b97274-f741-4de8-904b-0c64cceca385","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":152,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"20a41a25-7ce6-4814-8b15-f187746fcb92","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":152,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"09579817-bb0e-421b-beb2-1224fdf0d8fd","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":152,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"710e3db1-9463-4608-9e7a-bbd1f3393fd9","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":152,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"048c3538-4ce7-4b34-a9ec-767c84696362","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":152,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"5965b263-9901-4290-b65b-24b01616d079","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":152,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"987b2977-8c4a-4ab1-8457-876613e26029","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":152,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"35d9fd72-21c7-4fff-874b-28e0899ef3ca","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":152,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"262066e6-c68e-4100-9744-189a3a748a6d","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":152,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"a9f41720-a8c0-4923-84d5-cad5b3806935","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"ac5ef4bc-dbc1-4c15-95e2-b63a3406e238","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":152,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"efbb1903-aaa2-4600-994e-b69b4be1c0fa","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":152,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"6ee19372-a046-4974-9ced-5fac118894ba","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":152,"box":{"x":102,"y":377,"width":572,"height":12}},{"id":"e7db763f-1c4c-48aa-bd27-396f27eeac41","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":152,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"4fef015f-f6b7-4d6c-ae14-f9dc8b60bc47","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":152,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"dbbfe329-73ad-43e8-83bd-a2371d66332d","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":152,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"4680528d-46fa-4bf0-a4b8-dc1cfb6cd630","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":152,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"5ccdafd8-76bf-462d-a5ab-a201884f2809","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":152,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"a5e72073-225b-45ca-af11-e0ee26e6d396","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":152,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"e9f41e31-1d0b-4b0f-8947-9a11c5ee8372","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":152,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"42bb2b74-28cc-4c9c-bcf2-8c8e8f84d301","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":152,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"3d87539b-b9b8-45a9-af4f-9396f17bb53d","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":152,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"49e65cc6-41c6-4f30-aaee-5e8af6128f00","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":152,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"6b1e3196-1ccb-4e54-b688-e4ce1e7d0511","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":152,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"b7f5de71-b597-445d-b5b1-49f1fcface3e","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":152,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"5d05adfa-5560-4ecf-bd60-72e2679bdba1","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":152,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"4a0fe2d3-dd9a-4267-a46d-9ce82b713146","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":152,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"53454300-6028-4d4b-87c0-010947ed3bcb","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":152,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"881b3766-3b7b-4df5-b86c-f3610adc5bd7","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":152,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"d42fd355-d0d0-44d7-a4d8-d4f900a3fdf0","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":152,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"b45e89df-9204-428e-9fa9-72988ce89a5c","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":152,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"8beebc1e-0c3a-47da-b19e-d4dd7ed5eda2","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":152,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"0199b795-747b-46d5-ac5a-1ab67cc33a2e","block_type":"box","text":"Class R Shares","page_number":152,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"372fd66f-8315-413c-8530-904409cf3c7c","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":152,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"ba89f754-7aad-4ff7-81be-6d51bf81caea","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":152,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"fe0800fc-f50a-49c7-8cbe-c077648164b7","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":152,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"cc7e2c91-6644-4a0b-87a8-2c69d25ca5af","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":152,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"decfd1b0-3173-4e3b-9a56-d3c933bcb6d1","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":152,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"74a63aaa-1897-4ff7-97da-34fb0b2e81b3","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":152,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"b58b2ad5-72e8-4158-9090-6a654dbf631c","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":152,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"fcaa902f-9acb-40e6-8372-ddbf365cf304","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":152,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"0d6965aa-135a-4ac0-b00d-89083ab03932","block_type":"box","text":"II-107","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"69714698-998c-4fce-9320-72f6c4886138","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9dd98d9f-e1cc-4e1f-b640-252db66be439","block_type":"box","text":"Class K Shares","page_number":153,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"1c2b5ccd-ac45-4358-9f63-e866445c59c4","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":153,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"f16bffc1-17d8-4af6-aa2f-c676203bba5c","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":153,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"ab69f8ba-15d2-4557-bde7-80a267959a90","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":153,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"5809260f-b179-47e1-8b1d-59bac39d4caa","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":153,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"816f7ae9-f412-478d-ad1a-a7996c0b521d","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":153,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"95e75c5d-04fe-4b52-b085-c33afb012803","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":153,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"ca434086-7bff-4fca-b9e9-e300174113f2","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":153,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"872c72f5-da57-4e2f-896b-e6df516477d6","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":153,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"6cfe2c55-67eb-47c8-97f3-50df899a0ddf","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":153,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"a4b594f6-c65e-4612-bf33-970470a45b4e","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":153,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"14da9e6a-942d-43a0-aae1-a0825f86a016","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":153,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"b75bff82-81cf-4627-919f-d38c351938a4","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":153,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"ee430796-9e3f-440e-88ea-45f1bce13838","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":153,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"b5075be3-e85a-42e9-8fc5-f75cce227fe2","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":153,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"e1cee121-0137-42f1-a5f9-0a613ad0bccf","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":153,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"6393ea6e-f7ad-42e1-bac2-adc11943cf3c","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":153,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"3a913f59-0e26-44bf-b41a-54db907e1c9e","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":153,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"82eedb22-ae55-4aca-aae6-8ecce31dc318","block_type":"box","text":"distribution and marketing agreement.","page_number":153,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"0be316eb-66f0-46e8-b91f-e7d687a6fb94","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":153,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"5a91d751-b954-4626-acee-fcfd98051b01","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":153,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"a97d761d-44b1-48e4-8209-5befbc8ca40d","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":153,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"41f5aeb0-947f-437b-ae0b-77f132a0b1e9","block_type":"box","text":"Class G Shares","page_number":153,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"3f4eed5d-af03-46c4-8075-64cebc695eb2","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":153,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"2a0e808c-8242-47f0-a424-5b4c63de3ad4","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":153,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"22f1fa1d-89c9-496f-a8ed-b95a50fa212c","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":153,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"108094f5-0ffd-447d-95f4-b4b4fff606de","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":153,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"356dbec2-8fa2-48d4-a013-d29676cbc668","block_type":"box","text":"eligibility requirements.","page_number":153,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"e7002743-5cd9-47c4-a649-c79501709d54","block_type":"box","text":"Service Shares","page_number":153,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"37572ccb-68ee-40f8-926b-ef31c470c323","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":153,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"986d71e3-0d4d-4ab2-a1a6-b94662eab471","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":153,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"da6f05d6-ec63-4032-b27b-8557f0cb9650","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":153,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"9e273a78-3443-4a02-ad00-67ee3a6eeb1d","block_type":"box","text":"®","page_number":153,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"8e876780-eb44-49e5-acd1-f43f3fa5f57a","block_type":"box","text":"Fund in 1996; and","page_number":153,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"6bb6d65a-bb39-4166-958b-33e371bc3146","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":153,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"4507a3bc-1998-42e5-a6b1-0cdb7cdfe914","block_type":"box","text":"SM","page_number":153,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"2bd3c190-9673-4ad2-9c9a-f787b3100437","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":153,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"0d95a42d-dc41-411b-88c6-8a9cce482a62","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":153,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"7cf1f807-10f5-455d-89c2-4ac00b5265d1","block_type":"box","text":"BlackRock Shares","page_number":153,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"f24be049-011b-4df4-bf9f-3aca5ef2de1e","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":153,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"3be5d247-59aa-4b55-8eec-f943345800f1","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":153,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"cc6a805f-396f-42c6-90ce-24d193964af8","block_type":"box","text":"fee-based programs.","page_number":153,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"3f2e9209-a3ab-4a00-8478-938cc6d74706","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":153,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"053ceea9-1fd4-43a5-8d0a-746a4d7b64e3","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":153,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"ca239478-4948-4b60-878d-0cb20e683902","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":153,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"1aa21be5-df7d-42f8-a1e9-2c328f1eb964","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":153,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"75ebd023-284f-4946-ae60-3f5142c578d3","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":153,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"d1a0306e-6f5f-49a0-a66b-3bff1173b21e","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":153,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"aa56f57e-700f-4b0e-9518-b15e9cd4e50b","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":153,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"58abf64f-657d-42b0-839a-ad9425692f55","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":153,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"4f0ac85d-8f30-4328-ab37-827d7231b121","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":153,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"75e25e8b-ecc3-48c9-a5cd-49f049946424","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":153,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"a00b4ef1-77fe-4716-949f-4e2329a6a68b","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":153,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"1c2745ae-5b63-4415-a0b0-df831bdff55f","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":153,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"ebdb44c2-81c2-4994-b60e-5126ed6b37bf","block_type":"box","text":"II-108","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2a4774d3-3504-4f13-a98d-757bcb69a6a8","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5116938b-ecda-462e-92c6-839670edfdb7","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":154,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"55bff896-1bd2-423b-97e2-bcb525e0af0a","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":154,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"7f2ac5f1-26c9-490b-a962-f80a70e37500","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":154,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"29771332-8f7f-4ddc-af7d-c957e38ec3a8","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":154,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"2ce890a4-4017-400d-860b-c3f07604f2da","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":154,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"242fc00e-4218-45d3-8eda-a9fc1897eb71","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":154,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"438de5e1-fffb-4df5-b756-ac9a994d9863","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":154,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"83a37912-1aa1-4eec-bc34-1734550ac61f","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":154,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"6d8c1a05-4209-4d40-b4a5-0047fda07f61","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":154,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"c77eee15-efb5-4f59-9301-ffa7480cba80","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":154,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"6c8a41a4-455b-4c65-9a89-17ad501ad980","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":154,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"c3c9a1b5-bf2c-43ac-9ffe-af865f8f9f01","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":154,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"4463e143-0bce-47eb-8ad7-0f1a21ba90e0","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":154,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"b6a466dd-be5e-4722-8273-9eee09587791","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":154,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"aaac1499-585c-4d36-b836-35edf373bc9c","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":154,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"6a596340-9896-4234-873a-97befd752295","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":154,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"a64bba31-344f-4fb2-8454-843a07d4a9dc","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":154,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"3915ea2b-bf8e-4b8b-b49e-4d1439d0bc37","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":154,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"74f480bb-ee78-46a7-b0a3-a7a51879f2fd","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":154,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"2128c9a6-6d98-4454-aafb-24ddf69285fb","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":154,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"9454ce28-6195-464a-9c17-137b737c1226","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":154,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"9caf7563-628e-47d5-a4f1-22cb963ed223","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":154,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"bf02fb9b-393e-4669-a676-f49ec218da8e","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":154,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"0676a8ab-0ec6-4214-a024-46cf3d7d8801","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":154,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"9e503a97-c96f-4f1a-8e0c-9a45d1fc9595","block_type":"box","text":"compensation for selling different classes of shares.","page_number":154,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"4c9c69b5-8fb5-4e26-acc5-c220f5977801","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":154,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"d527978d-ada4-4cdf-8772-031aa7319c5f","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":154,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"17e7f68e-67e1-4c89-aada-3e924fd23b7e","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":154,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"90ce4289-165b-437a-abfd-9fae40da3afc","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":154,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"5d3291b9-6fa2-4cb0-a7b0-bb91ef9c256c","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":154,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"d1c3cf5b-351c-402b-a3ee-e86b46b89725","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":154,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"b9ee353d-4ec2-45e7-a894-6852f90679dc","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":154,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"11e6c5c9-5f0d-4c2a-91c1-33fc85dd24ca","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":154,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"3486505c-b0f1-45ca-b939-45b93bbf3194","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":154,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"72e9357e-5738-4c6a-9535-156eeadfeaab","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":154,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"9539f4ab-a84c-4728-a1f5-acf9a049bb07","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":154,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"63cf2d5b-a1d1-4a04-8098-f66ce9a82d8f","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":154,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"72c6b885-16dc-4e58-8dd2-e683ec65e5dc","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":154,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"020db923-86ff-4539-800e-fd2eefa08701","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":154,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"fa29847d-eda2-4353-b09d-7ccd98550e5e","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":154,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"11f4c4e6-1162-4c6c-b44d-7c81809cee97","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":154,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"de0cf311-b60b-4296-9b03-b66b5dcc9195","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":154,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"10c3d72c-4b1d-4146-a6e2-169c1e1dc163","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":154,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"ae0ed151-acd7-4b8b-bfb2-4bcb5d1a8bf6","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":154,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"309f3063-40ec-4493-bab3-f83fa312a169","block_type":"box","text":"easily accessible place.","page_number":154,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"393e8125-de71-467c-82fb-4786e3e17859","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":154,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"b6a3f037-879e-48a7-a923-1086b4851be5","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":154,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"464ec766-5fc3-4cce-abe5-86567ce7e8f0","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":154,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"948fe904-4810-47df-8f4c-68a44816723e","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":154,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"0d90f60d-cf36-4e7c-bfc2-5c9590f81809","block_type":"box","text":"fiscal year.","page_number":154,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"21654a68-f518-42fc-a593-5ef7f97e4474","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":154,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"f5f899b2-b104-46b5-841a-70418abae595","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":154,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"581e71e7-85a1-4be4-a915-d99f911f1dfe","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":154,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"1621614a-71b2-429c-b98b-2465ac47ac00","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":154,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"0a9d63c8-24cb-471c-b249-20e54e3f4752","block_type":"box","text":"II-109","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d9beb2f5-b791-4b83-9009-ab0edf034175","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86daa323-c4f0-413d-a086-23aecaecb5f6","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":155,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"a2a85b24-009b-42b7-aeef-ceefe1a36b46","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":155,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"f2527a30-d150-4196-a55e-93142d83d487","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":155,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"70f4e5d8-d963-4266-9e42-a398248cf391","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":155,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"479cd2da-dd40-44bf-b79a-c41329f28eea","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":155,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"92ac8ad3-da87-4aff-9251-9eab78c639d4","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":155,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"dc3f4b42-8845-4b94-bf4b-21e9f73cd304","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":155,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"e46aba82-aede-4ea2-890f-529c79298634","block_type":"box","text":"and Class R Shares of your Fund.","page_number":155,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"835d9d49-9a7f-45e4-86ad-f9e35b3b5b17","block_type":"box","text":"Other Payments by the Fund","page_number":155,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"5a1fba6b-2db3-483c-b800-fefa3812e6da","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":155,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"a653714d-55b1-4077-9681-fa458637fe3b","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":155,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"5f86d18d-5dd6-48de-b9aa-b25106a9033c","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":155,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"e50def5c-c743-4b0f-beb7-0d4afac11cb8","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":155,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"9d8e6ab6-5f79-4076-bdd6-b5167687f969","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":155,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"97c8d21f-3742-4977-aacc-fe89b9c812c1","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":155,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"86428fdb-8ab6-42df-b593-cf6a72c3922f","block_type":"box","text":"of these payments may be substantial.","page_number":155,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"1bcd0007-2262-480d-93d0-7a69238dd4b9","block_type":"box","text":"Additional Payments by BlackRock","page_number":155,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"b7672026-5846-4451-aae3-34da3ed31500","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":155,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"bfc603c6-f0e8-4d60-8138-ceab04b1e17b","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":155,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"2d65517f-22ad-4451-90ee-693f0a3be0d3","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":155,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"c7bf7a6f-c857-44b9-b24a-98ea8cb22fd8","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":155,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"e3f269dd-f76d-438f-aadc-40381562e8f4","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":155,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"6ec15d70-9324-4124-b902-10e725a810ce","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":155,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"c49f2a97-80c1-49be-b052-22d201e221eb","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":155,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"05072a68-e7ce-4a41-a62b-773d269fed65","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":155,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"2afda9a7-4df9-43b6-9e1e-7b820848bfa3","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":155,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"41881244-7851-42f2-a026-14dfe47437ce","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":155,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"1d79c7be-0bc6-49be-8e68-d540bf8ee9af","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":155,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"2afbd5f7-33e8-40af-8c70-3691ae7b264b","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":155,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"f2a4475d-939c-42e8-8668-438e1ddca635","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":155,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"244ac3a2-80a1-4ede-8b34-93343ea02991","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":155,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"53b9c739-b0c4-48ea-8a20-80527c9b886d","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":155,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"a74e99e4-ca89-43dd-b99e-19c35c736cbd","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":155,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"0022640f-2e9b-4e76-ad84-050083b7ff42","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":155,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"f59f2e61-066d-4956-bdab-c7971d95fd1e","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":155,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"f6c6d513-5c37-4e28-ad6a-d90069d9c9d6","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":155,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"8db6a3ce-406e-4bff-b83e-be466bca4bd4","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":155,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"31956e00-9777-41bb-8253-1cee5e4b6cb9","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":155,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"495be07b-4d09-48d7-937c-68df63c7c10d","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":155,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"983abc7e-bcea-41de-bbe1-ebbcf0a79e3f","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":155,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"e0139cda-b887-4b09-9b3d-05c7071e645a","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":155,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"9f9cb93a-94ee-41ca-ab4f-23261ab2ca36","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":155,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"f12886e5-d5fa-4f02-b332-22a772b1d7f4","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":155,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"b897cce6-3f0a-44d0-90e0-08ef81cbbbb2","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":155,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"73dd2dfd-abbd-490a-befb-1eba9d2dedad","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":155,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"76c74046-4c2c-417e-8d01-790fe19ede35","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":155,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"a09dcbb0-83b0-4f81-beb6-62755bcef5dd","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":155,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"40257dd6-f035-48be-b347-86892a9e8389","block_type":"box","text":"Funds.","page_number":155,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"9494a878-c4fe-484f-bac8-7a10d9588613","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":155,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"dbfe874c-68fb-4e34-9cf3-8c6f2e02b223","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. These","page_number":155,"box":{"x":101,"y":876,"width":740,"height":11}},{"id":"091a4aef-38bc-469d-b8d0-e591c381239c","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":155,"box":{"x":70,"y":891,"width":764,"height":12}},{"id":"1781d7b6-7eaf-460a-bfd6-8488c6b92c31","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":155,"box":{"x":69,"y":906,"width":811,"height":12}},{"id":"147ee7bd-cdfc-412c-87ee-6e95ffea9afa","block_type":"box","text":"II-110","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6b3db5d2-90df-4569-976f-c86949df5876","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a7b5e73-ea7c-4e3a-99a7-413c66586f36","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":156,"box":{"x":69,"y":45,"width":742,"height":11}},{"id":"f2d3c134-c05a-4a16-ba64-78111e23d652","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":156,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"35e2291a-3825-421c-b462-8086230d037d","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":156,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"2796c4e3-51fd-4f6a-b946-50db04369a68","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in certain sales","page_number":156,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"b5fa3783-2a38-4340-bddf-bfc3ca60ab3f","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":156,"box":{"x":70,"y":105,"width":803,"height":11}},{"id":"2a83aa55-4c3e-4851-aaff-aa1674c40290","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":156,"box":{"x":70,"y":120,"width":783,"height":12}},{"id":"b1583de7-3e21-4dce-9805-d1e014bd5928","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":156,"box":{"x":69,"y":135,"width":823,"height":11}},{"id":"9841e30d-13c3-472a-a91b-c716c6252b63","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure support. These payments","page_number":156,"box":{"x":68,"y":150,"width":805,"height":12}},{"id":"a1d67c2b-5a95-4044-bd3f-47a79e3ac082","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":156,"box":{"x":69,"y":166,"width":828,"height":11}},{"id":"f73fdf80-f57c-40ad-b9c3-370dd4f13d60","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":156,"box":{"x":69,"y":181,"width":523,"height":11}},{"id":"3463f1df-ae43-4826-abfb-9ab728830b32","block_type":"box","text":"B. Shareholder Services","page_number":156,"box":{"x":102,"y":203,"width":172,"height":9}},{"id":"bcbc1f87-2dae-4f5d-a6a9-b608072aff78","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":156,"box":{"x":102,"y":226,"width":754,"height":11}},{"id":"bcf007c6-d890-4f19-a59c-162d04f73390","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may perform","page_number":156,"box":{"x":69,"y":241,"width":830,"height":11}},{"id":"714e370d-22e0-45d6-b4b8-0b4af179786c","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have performed if the accounts","page_number":156,"box":{"x":69,"y":256,"width":823,"height":12}},{"id":"5f383c5a-bdec-4612-adf0-a9ab0c18b8c9","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":156,"box":{"x":69,"y":272,"width":839,"height":11}},{"id":"736cd573-2209-4dd3-84cc-c53aa0b4a664","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":156,"box":{"x":69,"y":286,"width":796,"height":12}},{"id":"3e4d2430-7c73-4844-9706-39729ba57d52","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":156,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"d74855f4-57f0-4f5a-b818-5c782386229e","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":156,"box":{"x":68,"y":317,"width":828,"height":11}},{"id":"81c8820e-5297-4c38-ad61-f6fdc5e61ceb","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":156,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"50bc23f1-cbe7-4006-91ac-c50b8af2277e","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":156,"box":{"x":70,"y":347,"width":328,"height":11}},{"id":"ac949e14-7629-4762-acc6-39963e391adb","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":156,"box":{"x":102,"y":370,"width":299,"height":11}},{"id":"75b22118-a1be-4352-ad4b-cf07866f4fec","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of certain analytical or other","page_number":156,"box":{"x":102,"y":392,"width":805,"height":12}},{"id":"f0d12357-985b-41cf-9090-841ec7216a91","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":156,"box":{"x":69,"y":407,"width":788,"height":12}},{"id":"45b9a250-ca99-4761-9f7a-a4f561a41f29","block_type":"box","text":"support. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":156,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"b7d4baeb-42fd-433c-9380-b1994ee8a57d","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":156,"box":{"x":102,"y":445,"width":397,"height":12}},{"id":"ec58cbf6-a4a2-4bfc-804c-9b44529886bf","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":156,"box":{"x":101,"y":468,"width":774,"height":11}},{"id":"9510a12b-8e96-4e30-8f06-581556e9b91d","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":156,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"5aeef8d2-bdaa-4fed-a72b-da251738ffa1","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":156,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"071e16d2-126c-423c-8d92-caaa13c20eaa","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":156,"box":{"x":69,"y":513,"width":791,"height":12}},{"id":"7472af6d-d1bd-4cc7-852b-ecd42b9b41ec","block_type":"box","text":"payments and to obtain further information regarding any such payments.","page_number":156,"box":{"x":70,"y":528,"width":523,"height":12}},{"id":"960bb8a0-b820-49f4-b708-05c66bcfb1f2","block_type":"box","text":"&Partners","page_number":156,"box":{"x":69,"y":560,"width":71,"height":9}},{"id":"fbac2179-c5ad-478f-9060-697493458a5b","block_type":"box","text":"AccuTech Systems Corporation","page_number":156,"box":{"x":68,"y":580,"width":219,"height":11}},{"id":"fc8f780d-eb28-495a-a0af-efd0bad31a66","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":156,"box":{"x":68,"y":600,"width":164,"height":11}},{"id":"5dd70a85-0b35-44c8-bb54-f0aecce6de44","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":156,"box":{"x":68,"y":620,"width":207,"height":12}},{"id":"f2e5d886-503e-43fd-8162-15184952cc6f","block_type":"box","text":"Advisor Group, Inc.","page_number":156,"box":{"x":68,"y":641,"width":133,"height":11}},{"id":"aacc1976-0d17-49d4-b42c-45bbf1649025","block_type":"box","text":"AE Wealth Management, 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The","page_number":160,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"87ee4132-982c-46a9-b9b6-66f5817ff401","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time of purchase,","page_number":160,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"8a4c0350-b837-42e8-9ba2-91d9a3044d1c","block_type":"box","text":"depending in part on the market value of the securities held by the Fund at such time. Except for any CDSC that may","page_number":160,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"e935c937-3d57-4a8e-87b3-b8a5f18b0cde","block_type":"box","text":"be applicable, there will be no redemption charge if your redemption request is sent directly to the Transfer Agent. If","page_number":160,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"aac1573d-e87d-438b-a219-5c83161f1ae7","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":160,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"b3efded6-a482-4a6d-a72d-1eb19770ba3d","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":160,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"d0b45b87-7d26-47a4-b619-29e4055671f4","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":160,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"0a0a699b-4365-4be4-b8c9-be885502d513","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":160,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"71f4dcdd-3d8b-46b0-bb6c-5f052a83ab3a","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":160,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"330db13d-a7a4-4b3b-8d8c-d33a71a46ec5","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":160,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"ad3d4d42-97c3-4472-bd05-71327df0e5d6","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":160,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"c6b537c4-1807-42f4-aa10-5b8d8346a5fd","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":160,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"f39626fe-0993-4e09-81a3-be8a71fdf1b2","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":160,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"38f86e3c-f0dd-4722-92cf-38b73966527f","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":160,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"cce7c4ab-6a1a-4dc4-93bc-bc1adc1694a7","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":160,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"d79f1073-0132-4814-ad74-797b14c3c2ab","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":160,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"ebaad735-9f83-40e7-b70b-20b4327eaabf","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":160,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"f9e82e91-a984-4442-aa4e-5bd56ad0e095","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":160,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"16aabece-7cbe-4d36-ae16-43f404cce6ce","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":160,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"44df33b7-f742-4054-91b7-c0f563a50dab","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":160,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"b5bc49f0-bb57-4c13-85fd-3a1b9d186922","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":160,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"4575e290-a266-4506-86eb-60cd9d81118c","block_type":"box","text":"II-115","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f79f4e22-e678-4de8-b4f8-ee1c34a00389","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba0b9481-3a00-4289-a715-4fcd4388eb3a","block_type":"box","text":"Redemption","page_number":161,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"51610ba6-b06e-4164-848a-baec731d2408","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":161,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"7b41d611-082a-4284-9b6f-39ca00fa40c7","block_type":"box","text":"Redeem by Telephone:","page_number":161,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"19114700-372c-4516-8e5b-988fe316741b","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":161,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"5af50b31-3759-44f8-a605-dc773376db43","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":161,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"6f512ca5-5098-41ae-8108-5e52fe073dff","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":161,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"7afef85c-f86b-464f-ae02-f8fede661ec2","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":161,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"3d465b0c-d4b5-4df4-a7fa-96909f24cc81","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":161,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"f9fc8352-c6d8-4075-8480-902235eda4df","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":161,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"e239ca28-7f50-4fc2-9c8a-84fce4aa910b","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":161,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"fc31ec76-3c24-4518-ae04-ba701e364383","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":161,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"2a2a4a9b-85ef-4566-9fce-fc58e1b176df","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":161,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"0af61080-2bb8-4a15-8461-67e0a961c9ad","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":161,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"1c61947c-adf8-4527-a8a1-65f5fb65dfc2","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":161,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"3506207e-d285-4ccb-9813-724009c2ffce","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":161,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"fb5abffa-12db-4772-a204-e03387c98649","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":161,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"fc36b2f0-509a-459b-9099-e6e6261163c9","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":161,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"2e60fd01-385f-430f-aff0-8a8ca68fafc0","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":161,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"e08cdc8e-59ff-4be3-a13a-4cbc1e03b33f","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":161,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"a3d03597-b690-4a02-8aa6-09fd0d705540","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":161,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"b16a2f72-f8bb-4688-84ab-199415347c2a","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":161,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"62130a01-102f-484f-a87a-26a1e7fdc280","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":161,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"591cf441-44e2-483c-ad27-2f1e895c6d96","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":161,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"2b84bb3e-c4c6-40a7-8d3d-9f440d72e639","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":161,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"76901b19-f353-4401-a056-5c40ac5925d6","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":161,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"956e7347-f5da-4727-b692-11a8e7c2cab3","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":161,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"e2993b1c-92e6-45be-8c9d-674cb5927883","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":161,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"d9ef7172-b5ed-40fd-8053-846561d827ec","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":161,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"d2570290-869c-4008-95d1-a860e4a89cf1","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":161,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"b8599268-2eb8-4a66-bea9-65b2e24b2bc0","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":161,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"49aebb01-3237-4b45-9cb1-e0228327c637","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":161,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"8fdd150e-7143-4146-8165-6b072f42aadd","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":161,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"fb4cf4a2-da2b-45f4-bb77-c17ff29c8878","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":161,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"b9b8fe97-b067-4941-b2d3-1bac948767b1","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":161,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"b63011bb-9514-4171-af86-033b18715f0b","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":161,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"050b3820-de27-44f9-985c-e1f08a657fbf","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":161,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"9dbada67-f2cd-441a-9418-1ca338575b19","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":161,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"c3af2744-e363-4d70-bbfd-281f263342ff","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":161,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"72d064db-9024-4559-8507-cdc7a09b24c6","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":161,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"13ef010d-ade4-48e4-aa2a-fe32760bd4c7","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":161,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"7e9776b1-d283-4099-99a8-d0e721ee2663","block_type":"box","text":"Redeem by VRU:","page_number":161,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"addce4bb-79f1-4101-8de2-7bced1179bb1","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":161,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"e07e2054-e545-4871-ab74-e5815dea1000","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":161,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"2122dc89-4a08-4021-8245-ae9b5ff60bd7","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":161,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"9acae0a7-2d4c-4a06-9485-a61aafd74960","block_type":"box","text":"Redeem by Internet:","page_number":161,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"600100e5-3ecb-4122-ab21-6bbee07d8495","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":161,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"bfbe5958-7410-4866-92c9-0eb7306a246d","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":161,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"383a8c5e-b481-4efe-9a32-5e31e1206a9b","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":161,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"6f187b2a-e7b3-4351-8529-277cccb331be","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":161,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"944c780f-458a-47c7-9e60-56ce3988ae94","block_type":"box","text":"institutional investors.","page_number":161,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"9d14f9e6-c4b6-492e-8b8b-18673a1157b3","block_type":"box","text":"Redeem in Writing:","page_number":161,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"d7f44b00-2870-4637-a425-1ace2335ae40","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":161,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"f2dc1a4f-1550-453c-bbbd-cdf37961e9a3","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":161,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"a223dce6-3cc2-48bb-b61e-a6f11a21120e","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":161,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"b89be698-e752-4261-9043-696deda6c2a4","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":161,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"d8255d92-01e9-4cf9-b34b-e7136a61da5b","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":161,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"00e95886-c722-44e3-b6f4-1754a22f729d","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":161,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"8d15eca7-d360-48bd-95ef-9f2b971106ea","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":161,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"e44719f7-3a70-45c4-b589-c3cc3790c06c","block_type":"box","text":"II-116","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5863bf9d-1266-4ad9-92b8-33fc99dad633","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20834976-d4f9-43d1-86b4-847f5a0f174c","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":162,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"a37a350f-bed6-4d4e-a152-9d7449e21cab","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":162,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"ebc6d8bf-8e5d-47a8-a3d1-815ae5f64ab7","block_type":"box","text":"or wire to the bank account of record.","page_number":162,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"85bc47ed-4002-4bcf-8ec5-abb091f599c5","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":162,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"6b00a5c0-019f-47e1-899a-d2a756ceef4c","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":162,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"b89b4020-a9f8-4980-b879-1f9cf02e4461","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":162,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"0ce61051-fdff-4bf7-95e9-09dead20818a","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":162,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"c1b40b06-dbe8-4df1-bde6-f8aa48a50369","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":162,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"1ff403ca-04e3-4bc2-8ad5-b084dd229048","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":162,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"80b8772b-c08e-4d1e-930b-32009345b10b","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":162,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"b583f7e8-eaee-49d0-8c19-dacdb4462213","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":162,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"f353e00c-c8b6-4a52-a978-e234289baeb0","block_type":"box","text":"redeemed by the Fund.","page_number":162,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"fa102b3a-fb92-4ee3-9f89-3866c2b25fe0","block_type":"box","text":"Note on Low Balance Accounts.","page_number":162,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"fc16dc26-a7c6-4028-9d02-612630576898","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":162,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"8307e791-a781-49d3-a045-f23ee9bdfeea","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":162,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"d902d041-fccd-46d7-86f9-954705041328","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":162,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"aac13c67-f698-4852-ae83-0e9de50e9ee8","block_type":"box","text":"for any reason, including market fluctuation.","page_number":162,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"213dbd60-a5cf-4fcb-81c7-3d8417cbf4d0","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":162,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"4adf0b3d-3637-47c9-b437-9b59adddb190","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":162,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"38d4c149-40f4-4ff3-bd21-707d410e04e4","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":162,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"5a0b8814-dcf9-4a91-83c3-0291dd86d74e","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":162,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"273a80ad-6c3f-43a9-ae73-b73b385cfd1c","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":162,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"85886e00-9db8-4869-b2a8-b8ecbcfcdd8a","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":162,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"e7652a8b-0a46-4cac-8cb4-ce71eea3940e","block_type":"box","text":"Repurchase","page_number":162,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"1e10e043-1c3f-4008-b618-af32e0c48bcb","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":162,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"ed9e1614-7d2d-47eb-af41-de3f0d8cf104","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":162,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"563f04a0-a4cc-40ab-9425-277edd320e0d","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":162,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"0b24ef1c-95cd-4caf-ad80-29193b037f84","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":162,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"3b223629-2398-4355-9191-c93a657398f9","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":162,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"be2fef51-ac75-44bd-a3e0-0595f7208276","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":162,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"ebfee5e8-7841-4b6f-a7c1-6fcac3b510c0","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":162,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"c1d4e663-fb55-4747-8af8-a90f2eb4dd5f","block_type":"box","text":"next business day.","page_number":162,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"0f084104-5f5b-4889-94c3-dd6d1842875b","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":162,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"e00b8fcf-c0f6-4a71-910c-60ab6efa5d69","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":162,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"ee21ed20-448c-4f55-83ee-a7577019670f","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":162,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"84be8987-b5b3-445a-b486-34b2654726a5","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":162,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"1e77a7cb-c5c1-45fc-b6bf-517194277577","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":162,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"20c77f51-304b-41a4-ae77-d24f4fa250b7","block_type":"box","text":"redeem shares as set out above.","page_number":162,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"ac871b16-8319-4677-b6d6-59aa788a51f3","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":162,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"151ab7c1-7ffe-4d51-880f-ebb3bb20b729","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":162,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"df03f374-9c2c-456e-8ca0-8dcff4d776d0","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":162,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"2936c7f3-c9e4-451e-aeb2-f71dd1e3a9b7","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":162,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"46e41219-514e-474c-bac6-78465e8f36cb","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":162,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"2904ba55-c6e7-4aba-87b0-c65fbc5d4277","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":162,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"b7c138e7-4086-48fe-ae21-306f85a50aac","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":162,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"d0c8a0c2-8645-4fcd-900d-e7c5080d19db","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":162,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"4301cd5a-573b-4319-b5da-3f39b1e71fd1","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":162,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"f199f50c-2283-4486-b6a2-0a0d484dcb3a","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":162,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"a4a5045d-2194-4695-9f73-c085c052a098","block_type":"box","text":"II-117","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b9be1939-d443-4a90-aabc-9d9dab88e3af","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"211cb00c-35bd-49ee-b5ad-94f871854781","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":163,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"3a5f90de-cfc0-4086-b160-7ae5e58fb86a","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":163,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"21c32448-cb6e-4fb6-9763-0b4b847d66c5","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":163,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"a5b19863-ac8c-4fae-b518-c1e5bcc7b68a","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":163,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"bf0d3487-41b0-40ef-82bb-d538408ab98a","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":163,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"220ea855-bad4-40ea-bea0-fc5b5d349a63","block_type":"box","text":"Investment Account","page_number":163,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"bb9c2886-df2a-4ff4-a0d2-13917f09d1b3","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":163,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"7abfad5b-af04-40d4-b628-052d42219af6","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":163,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"2c13e549-2046-4676-8d5f-b012299bd28c","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":163,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"806f6100-cff5-400f-ba41-2c59768f7cf0","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":163,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"74a92c2e-5dbd-4e5c-9530-43dc7ee21f9b","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":163,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"d410ff37-f574-4e52-8c45-8170e9297c5b","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":163,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"eee566f7-ec74-4b91-a0bf-05559fdeff4a","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":163,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"9f472fd6-3125-40ad-bf90-c279186a7171","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":163,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"6256a0b4-37e3-4dcb-91e4-49480bbc4ef8","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":163,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"b069c09e-772f-42cc-a822-7fb504a4d86f","block_type":"box","text":"automatically at the Transfer Agent.","page_number":163,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"6e329688-f01c-47e2-9aa6-780c0a5580cb","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":163,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"627ac8a2-8186-4511-9388-5f41b5a35cf6","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":163,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"7889ed7c-3e7f-4ba1-8f4a-5adf9479250b","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":163,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"08c9dff2-e79a-4f80-bb8f-9e3eaa0c9b9e","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":163,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"2bc47098-b068-49de-b1d0-412e20ead8e0","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":163,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"79ea7658-8e1f-4d34-81ac-840016d5d7b6","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":163,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"fe4cc904-6409-4feb-a745-68952f80eccb","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":163,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"93a01119-3669-4e21-8c9b-0aad6701a126","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":163,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"82edb110-0713-4fe5-9f10-abf6111d617b","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":163,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"3129c70a-e415-4a6f-830d-35a3215558f7","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":163,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"533aaf5a-2525-4f8c-8017-ed25bf1ddf0b","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":163,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"079a01ca-2868-496c-a6f2-2516b0b4566d","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":163,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"ae41c44c-d280-40e1-9dda-fe617c4e4515","block_type":"box","text":"issued.","page_number":163,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"28eed89e-5b45-4566-aba1-d2f0e652b12e","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":163,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"1c2c494a-2026-4d85-ae93-75abdb17e683","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":163,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"73d3fff9-2e2e-44e1-94f9-435e9e8d57c6","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":163,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"639b73e5-7bf6-4c90-8fa7-b5cbd5aace92","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":163,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"971003f5-d579-42c6-ac78-dce89ea2041d","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":163,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"c68b8576-e1a8-4cd6-82d8-37f81190cb2b","block_type":"box","text":"Exchange Privilege","page_number":163,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"a9d8643b-f611-4078-b32e-f8f3433dcd08","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":163,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"8dda35a1-873b-4bf8-9bc8-803c18d14637","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":163,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"eb79dfa4-0302-4358-84f5-9c83fa89adb4","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":163,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"76311eea-ae84-404d-9369-750f85233191","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":163,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"c2dcdc50-5a6f-4009-a6f1-e51eec7d8502","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":163,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"01eb3f31-3d80-4772-a093-2dc2f342f5e9","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":163,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"6df5ef6a-e423-4abc-9fa8-7bebfdd538f0","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":163,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"687953a2-497a-4b42-ba69-84fb071818c0","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":163,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"a15d98b7-fbe6-45fb-8ccf-a1721bab2d7a","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":163,"box":{"x":102,"y":771,"width":648,"height":11}},{"id":"d8010c1d-f975-4eaf-95fd-68b75e529607","block_type":"box","text":"Institutional Shares","page_number":163,"box":{"x":757,"y":771,"width":137,"height":9}},{"id":"3a0c8073-cb51-4369-a459-7af3f6dd4269","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":163,"box":{"x":69,"y":786,"width":817,"height":11}},{"id":"0aec625b-0282-43bf-9680-f47999a4a774","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":163,"box":{"x":70,"y":801,"width":798,"height":11}},{"id":"59b7ddad-7249-4e17-ae73-396c754c53f2","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":163,"box":{"x":69,"y":816,"width":838,"height":12}},{"id":"ab796c15-ae15-4000-94ca-9d2b6478cdee","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":163,"box":{"x":70,"y":831,"width":834,"height":12}},{"id":"52ae5b0e-a293-43f2-8bb8-413fe2391dc5","block_type":"box","text":"for Class G Shares of other Funds.","page_number":163,"box":{"x":68,"y":846,"width":246,"height":10}},{"id":"a3fac10e-fb72-4ab5-8b96-79495d7ae46a","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":163,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"41ccdf51-49d3-4b51-8f18-6c1022e364a8","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":163,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"a71029fb-b3db-4f93-a506-6e84484bb2b3","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":163,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"b6774cd3-3074-4680-821c-85a5133c5feb","block_type":"box","text":"II-118","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"091c2328-6dfd-4ab8-9532-02d182bc6d77","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db9dca0f-20e2-4b67-a6f8-bd14483b7c99","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":164,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"65f7877d-28b8-4b3f-bf9a-02f9adfc1cec","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":164,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"bfeb72a9-c507-4551-a945-a5ea5835c7f6","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":164,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"da611f00-c70d-4791-b6d7-1db161ed0ef2","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":164,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"2891773c-3f5e-4d1f-bec8-87ce19cdadf7","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":164,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"f8d407b3-9387-456c-879d-45fcf33b304e","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":164,"box":{"x":102,"y":128,"width":229,"height":11}},{"id":"8ba1f35c-8ade-4533-946d-bbccb0aaa40b","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":164,"box":{"x":338,"y":128,"width":570,"height":11}},{"id":"2354a84a-d9ab-417b-a1ce-a6d3039f26bd","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":164,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"1f488442-49ba-48b6-9bab-f63a4e115910","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":164,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"762fd965-35c0-4a00-bf4a-ad8f0888f3f3","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":164,"box":{"x":68,"y":173,"width":811,"height":11}},{"id":"c4a9768e-67cd-4dd2-9f89-e2685cb0c637","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":164,"box":{"x":69,"y":188,"width":827,"height":11}},{"id":"28473250-4467-4d3c-bea4-d7e899d2feac","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":164,"box":{"x":68,"y":203,"width":781,"height":12}},{"id":"d7337b35-d6e4-4e27-99b0-a2597f83fae5","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":164,"box":{"x":68,"y":218,"width":654,"height":12}},{"id":"0e7436b5-b2ea-4701-acfb-d7351a377bf2","block_type":"box","text":"Exchanges of Service Shares.","page_number":164,"box":{"x":102,"y":241,"width":211,"height":11}},{"id":"d4f931e6-22aa-4ef7-8641-ecb514be58b9","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":164,"box":{"x":319,"y":241,"width":588,"height":11}},{"id":"88d80c43-3503-4150-a446-33fef1286604","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":164,"box":{"x":69,"y":257,"width":342,"height":11}},{"id":"d584ef5a-8b6e-4d6d-a0c3-cbf68a1dc186","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":164,"box":{"x":102,"y":279,"width":335,"height":11}},{"id":"08e05a8d-ff78-4ea4-8cc0-a2e4e3dff518","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":164,"box":{"x":443,"y":279,"width":455,"height":11}},{"id":"1216d130-26bd-4677-b4e6-14fc9b8d59d5","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":164,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"52ba351b-088f-47bb-9361-931b187a8fac","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":164,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"5b8495dd-adb6-491d-8da3-611c42f0dc62","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":164,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"61ecab5f-e938-4935-ab74-5a5aa6e000a3","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":164,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"1bbfd41b-6611-4fd2-92d5-590ce2d14895","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":164,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"b3727dd5-eb6e-4fbb-b043-e050392a01b0","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":164,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"ea9ee967-6d02-41a8-9e27-fe532911fe04","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":164,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"bdca2724-3d46-4308-a1c4-8a8603b8a202","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":164,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"332ce1fe-e13a-43d9-b243-d86ae0026bb6","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":164,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"35a730ef-8515-402b-a0e7-e0b6de9fa301","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":164,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"f512d554-bb65-45cb-a2ff-585bb2572fa5","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":164,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"91997ab6-0882-42e2-81eb-c142bda0a54f","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":164,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"6946a892-0d97-4605-acd5-c76ef15f0a9b","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":164,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"7f9765a9-4313-4607-9834-29c3e43b7ab8","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":164,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"14ab27e3-879f-4dfe-97fa-62a4926e7fee","block_type":"box","text":"exchange.","page_number":164,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"230dd935-a308-40c4-a7a7-cc9c3eb8d94b","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":164,"box":{"x":102,"y":529,"width":337,"height":11}},{"id":"ff78a953-ca68-4994-9db0-2ac7c2fc3cfd","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":164,"box":{"x":445,"y":528,"width":448,"height":12}},{"id":"c10e201d-c153-45a2-beb1-ff590193e140","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":164,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"7fd611a5-cd04-4cd6-8f87-eb0fe9c56a48","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":164,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"2a3af555-38f6-4937-a3e8-bab958a871ef","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":164,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"598e7d8d-57d8-4833-a263-92c1b5f2bb9d","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":164,"box":{"x":102,"y":596,"width":245,"height":12}},{"id":"7057783d-1b40-402c-9f9e-32cf652a2ea3","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":164,"box":{"x":353,"y":596,"width":543,"height":12}},{"id":"83a25a95-85f0-49a0-9c19-d7157ab6bd84","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":164,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"e1f46175-670a-48b1-aa63-33e2f77f5f7f","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":164,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"d4488269-884a-4982-ae99-10a13acdbe10","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":164,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"0f3f0901-05ec-4a60-b36c-c634004eb4a1","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":164,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"f59426b8-3098-4b41-bb62-f047383299af","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":164,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"94168480-e2b2-46c3-ac85-8c0b24e53672","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":164,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"1aa1a4fa-d838-40a9-9ef0-b8413060f53c","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":164,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"d7651105-415e-4cc7-b978-bba75d984484","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":164,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"6dc6426c-a14e-41a3-9788-789db1011b90","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":164,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"9264b3c0-eef8-458e-beeb-13a131b8e4c1","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":164,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"fe3c902d-9937-4aa0-abbf-87c04dad337a","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":164,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"d9944253-fbaf-46f7-9fd6-24c16faf1794","block_type":"box","text":"Transfer Agent in writing.","page_number":164,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"e384a48a-d7e9-4563-a5d1-1747f065833e","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":164,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"f3a149b6-2cbe-450f-a91d-e0dcc23bdf42","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":164,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"97138b93-31a5-4548-8ed0-49823fca0c90","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":164,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"94ff869a-4eed-483a-85a9-2c8e98d1587f","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":164,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"f95a2fea-c030-4943-a50c-a3f35f6a4760","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":164,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"7b4dfe79-b1a0-4d9c-8e80-ef6789e23f2e","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":164,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"dc16a6a1-d4d7-42f6-9b7b-3b07b5d3ab38","block_type":"box","text":"II-119","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d09bd55f-bf0d-480b-9bcd-f3eaca5cddf0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d56f511-cb1c-4844-bdb6-585d8d85c9d8","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":165,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"d08033c7-a306-424c-9ab3-21067bc902e2","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":165,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"f42fddfb-a0d1-49cc-8da7-8e95209ae36b","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":165,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"575fc4af-9f50-46a6-962e-3a6192e1f647","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":165,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"baa13945-3b8e-4fee-8e5e-a787ee1b4197","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":165,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"98149ec2-a361-4c75-82d6-f196c4416817","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":165,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"8bbb29c2-0a53-459b-85e6-527b53c3dfb8","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":165,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"ea855416-47be-4418-af5e-f8931de769db","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":165,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"0ea23440-328a-44ea-8cb9-f73ae71a0693","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":165,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"f5a9e8ec-adfa-415a-a477-c047e79eb6c9","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":165,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"0524743b-01b8-4565-abb1-9fa74a9da3ca","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":165,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"9ccbc25d-8509-4de3-9836-143e0690e2ef","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":165,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"e294e6c9-a8fe-4c83-97cc-64ee88f650c4","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":165,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"7dce6ee5-b9b3-43b4-8015-c6796d9c9fe7","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":165,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"317c3eb4-5aa3-4856-918e-94fe254b47ef","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":165,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"179552b4-57e3-41ff-97d6-ffe8f7c4a9c1","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":165,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"88c3e750-89fa-45d4-80cc-da4926bacdfb","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":165,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"9f9db95d-6cd9-4ad9-8046-cb6f7ed498f3","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":165,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"d63bd064-c7c4-458e-88d6-df23e1144015","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":165,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"5d405c0a-36dc-4e07-8f8a-831d18c23289","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":165,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"95fc0457-d1ea-4474-bc71-f4aa1797fa5c","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":165,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"0248d02e-41e5-4505-8369-1cd7067d52ee","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":165,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"1d632f9c-6082-46c9-9418-3dc6996336ce","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":165,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"994ea3b4-8173-45ef-9103-04b00b2cd7b2","block_type":"box","text":"may be distributed by the Distributor.","page_number":165,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"75ba5c1c-55c5-485b-a604-c7fdfaa662b5","block_type":"box","text":"Participation in Fee-Based Programs","page_number":165,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"69088df4-9f7c-4c44-ad03-36a7d4b29496","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":165,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"b4712ea9-741d-465a-9f06-48176421118b","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":165,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"5dea7dbe-0f5c-455e-a76a-80dabc9efe12","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":165,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"a649108e-0a86-4fca-847c-4940ad358b4d","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":165,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"73ed854b-edab-4ae5-b7ff-44fe0a5eff7d","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":165,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"8168df58-6f8a-4c97-ac19-10a0e1cb3e3f","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":165,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"68f9a866-415e-4da9-8889-241bd4e4e01d","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":165,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"03c95685-dabd-4cf9-a786-cb1894dc5243","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":165,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"98e7de01-5bdb-4e5d-bde6-5c64dac1a11a","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":165,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"acef4ac7-6709-4bf6-ac78-4e7ab48b4d03","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":165,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"493efac8-db9a-4dd1-919d-9fbd4943b59f","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":165,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"c9418a5e-b5d5-405d-bf12-db3d288057df","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":165,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"ba568c36-3e84-4e2d-b4ae-a51abe5fefdb","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":165,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"59366fb0-de00-49a6-a903-ed0c1aa52a53","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":165,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"5102f6b6-4999-4024-ac0f-22a99247e8c6","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":165,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"5a1fdaf3-dd4f-48e4-9adb-34674e2c1c45","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":165,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"d5d83ca6-cf3f-458b-9023-b2ca679437eb","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":165,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"d4f2f02b-8e0d-4697-87b0-8ba419bb9b7c","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":165,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"d73ac9e6-33c2-44c7-af03-dd2f0bc4c0da","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":165,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"5727bb2d-79fa-4367-a495-0ceb40cdba59","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":165,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"4cee3e94-05c7-42c6-a377-8717a9ccbbe6","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":165,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"17f2fda1-36e0-4911-8048-8a80104fb718","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":165,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"aa0aadc9-b243-49ae-ac7a-fdacf3a8d971","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":165,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"d37bf1fd-a43e-4221-8b20-faf3c17c63f2","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":165,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"20c35a4d-969c-4162-ad01-70c7562cbfb1","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":165,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"044d8255-ac60-4b97-8c9b-484d3d2bf15b","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":165,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"f707ed0a-b909-4691-af5a-22156a9f025b","block_type":"box","text":"information.","page_number":165,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"98cdbe19-528f-417b-9797-af2af004ed05","block_type":"box","text":"II-120","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e5ddcaf6-bfdc-4d66-9fc9-0ee8f043c1fd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3281a9b-dba6-4fc4-9244-990e4aea328c","block_type":"box","text":"Retirement and Education Savings Plans","page_number":166,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"dd9f2bb4-3081-4352-8cd9-6c7e87bf9491","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":166,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"ea7c0f0a-1c06-4763-bbca-52e9c7747b18","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":166,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"9aa1d84a-39ea-4fa0-aba4-528006025419","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":166,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"505b23a0-80a0-490f-85ba-76f0ca54094d","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":166,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"7a6ca41e-1262-4350-afe8-d6930f63bca6","block_type":"box","text":"your financial intermediary.","page_number":166,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"5c59b501-c01d-40c0-bd2d-85a976f9bbce","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":166,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"31bd3a9a-9e82-4f95-936f-563d836c0b90","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":166,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"80be06a4-f3bc-4237-a984-ccaf667ffa6a","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":166,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"d0f76300-c0de-4d58-867d-f337bc98bba3","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":166,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"1c8a15e4-6e4a-4334-b1ca-cd07b0e3710e","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":166,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"78861cfd-50a2-4c48-ab0f-eb30d88ab1e5","block_type":"box","text":"Automatic Investment Plans","page_number":166,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"77f30b8a-cab9-497f-aed0-6c246e759a09","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":166,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"a5c4f83c-142d-4d76-bfc5-1a660724e5e1","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":166,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"7a660326-78a6-4d2f-be80-55e26d702aac","block_type":"box","text":"®","page_number":166,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"c0c8251a-1cfb-40ad-b11f-930b6b256c55","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":166,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"b77353d8-8970-4bb4-a6aa-c757fdd781bf","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":166,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"bcf2ef41-63f3-4fc6-aa4d-da93ba55fd0f","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":166,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"dbb1de68-4680-4985-a8c1-ae2eab69bd37","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":166,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"cb021444-ff89-4a99-b4af-20ea730919d9","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":166,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"102a2933-4fac-41da-a9ae-d88f2a048700","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":166,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"86d383ec-7242-4d6f-ae86-bc4bcc4893d8","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":166,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"3899b0f9-a80a-4c48-97d3-7909b60c1ed4","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":166,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"33a6a10d-1f02-4e5a-801b-0e2c5e147513","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":166,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"ce934263-3511-4359-ba3f-6f183fb098b2","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":166,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"6559d1d9-5f09-48ee-bae1-e15d3c0a9be1","block_type":"box","text":"Systematic Withdrawal Plans","page_number":166,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"411334bc-40c7-497e-9089-aea9aaeff070","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":166,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"f6ab3ca6-0031-47ee-95da-b3791617ee3c","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":166,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"a0fefa33-ea38-417d-9d1d-0830015dc126","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":166,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"1ca2486b-28ed-495d-9df9-bcf6a3ccf27f","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":166,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"05c713fc-7426-4684-ae5c-1e4f0bb87b86","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":166,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"ee23e9bb-0b9f-4c89-840c-15214f0e2df4","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":166,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"10a20447-0c55-4688-b7b0-b616447c577f","block_type":"box","text":"www.blackrock.com.","page_number":166,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"49a29e43-6fe2-41bd-95a5-c060e63a88d2","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":166,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"7411b255-ccd9-418c-94e1-0dd00494549b","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":166,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"14caac87-aa64-418e-a3ca-90904c3b8ffb","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":166,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"b9af99a0-a48c-4c90-97c7-d3bf482be0ed","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":166,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"b84afdae-3d3e-43f8-940f-d3b5b077b592","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":166,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"90cb4882-bf27-41da-9c75-e8838cb4cc3e","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":166,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"49df45a9-c2f9-401d-a5da-c612454e2555","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":166,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"3fc406b0-4b5d-4ac1-874d-687299ed7553","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":166,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"d262e9d9-2ddd-483b-b9aa-17b45963f0c9","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":166,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"a1b739b8-c87b-4357-852f-6865869bab3e","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":166,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"f2afdfd8-d6ab-438d-89ec-3b62d239d1f2","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":166,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"27febc76-d0ce-409a-8370-056bac15eada","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":166,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"c837e109-16aa-4ccf-ab29-b5c41deb251c","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":166,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"ecd7d85e-a619-4d34-a78d-fb9c1a0c84b9","block_type":"box","text":"Dividend Allocation Plan","page_number":166,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"8bb9806f-f987-4860-ba89-5739e2a2822a","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":166,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"87fb85a2-3c25-4b7a-a1ba-297412b3884d","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":166,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"8ca661b3-5e6a-405c-afb5-df072f7b944a","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":166,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"312bd504-0833-45cb-8aae-9730ee6f0a2e","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":166,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"9926569d-a245-4f77-a0b3-c9267fc3c634","block_type":"box","text":"II-121","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a153139b-1179-425c-9c5a-d3abddd2f3dd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8cf2be3-3770-4c1f-9dca-fda021ffcabc","block_type":"box","text":"PRICING OF SHARES","page_number":167,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"3907fdde-8afc-4580-b228-62657cfccca0","block_type":"box","text":"Determination of Net Asset Value","page_number":167,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"5165663b-2be8-4efe-ad3f-4853d2e81674","block_type":"box","text":"Valuation of Shares.","page_number":167,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"ef66ab08-5704-4cf6-b2bc-053bda8fc060","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":167,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"3a368574-97eb-4d7f-9ea8-4e7d5c608566","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":167,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"dd526ecb-1e4f-41f3-8f83-ccc5dc113846","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":167,"box":{"x":68,"y":128,"width":343,"height":12}},{"id":"26a7ada7-6a8c-40d3-a981-55771ab1b885","block_type":"box","text":"Equity Investments.","page_number":167,"box":{"x":102,"y":151,"width":143,"height":11}},{"id":"71dcf8d3-7c3e-4a91-a30b-8c8c9b2413d8","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":167,"box":{"x":252,"y":151,"width":439,"height":11}},{"id":"94cee949-fb23-49f2-b3ac-347379cb4b85","block_type":"box","text":"e.g.","page_number":167,"box":{"x":693,"y":153,"width":25,"height":9}},{"id":"b6a37f6c-7bbe-4965-a6d8-86a8d81f7592","block_type":"box","text":", NYSE), on separate","page_number":167,"box":{"x":720,"y":151,"width":147,"height":11}},{"id":"b7171694-a878-4f4d-b6d2-cd399c0cc5bc","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":167,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"3308be33-5eb7-4a45-9d56-57ebcf251164","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":167,"box":{"x":70,"y":181,"width":808,"height":12}},{"id":"d907b24e-5a3c-4321-bd44-aa95657a1c3d","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":167,"box":{"x":68,"y":196,"width":820,"height":12}},{"id":"b07b6b61-ff0d-4b2f-ae8a-f925cbc546c4","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":167,"box":{"x":70,"y":212,"width":805,"height":11}},{"id":"09f6a607-298b-46ba-90a6-8bb2c2dcc99a","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":167,"box":{"x":69,"y":227,"width":793,"height":11}},{"id":"54987621-a704-437e-9c9a-170bafc41467","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":167,"box":{"x":70,"y":242,"width":836,"height":11}},{"id":"c29cb92b-de0c-46e3-92a6-e872f7e3e645","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":167,"box":{"x":68,"y":257,"width":815,"height":11}},{"id":"1410b2c2-d998-475a-bf7c-216cb96928b8","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":167,"box":{"x":70,"y":272,"width":837,"height":11}},{"id":"5103897e-2928-4d94-9366-49f81520fc2c","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":167,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"834c3984-8d71-4331-99a8-b9e2e781585b","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":167,"box":{"x":68,"y":302,"width":828,"height":11}},{"id":"29c8f18b-4065-402a-84ee-51a238a5ae1c","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":167,"box":{"x":68,"y":318,"width":819,"height":11}},{"id":"ea64009b-cfdc-47b2-8a43-345254dc07b8","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":167,"box":{"x":70,"y":332,"width":798,"height":12}},{"id":"7b50eabb-fc28-47ce-8f4f-151818cada20","block_type":"box","text":"defined below).","page_number":167,"box":{"x":69,"y":348,"width":106,"height":11}},{"id":"9668ed6d-8ea4-49d2-8313-533dfe7ae036","block_type":"box","text":"Fixed-Income Investments.","page_number":167,"box":{"x":102,"y":370,"width":194,"height":9}},{"id":"97309216-4880-4ae7-afbb-4cf4ef995309","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":167,"box":{"x":304,"y":371,"width":592,"height":11}},{"id":"c785da47-32e9-40a7-835c-219b21418047","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":167,"box":{"x":70,"y":386,"width":825,"height":11}},{"id":"58406f34-9fb0-4593-939f-9f19f3cd654f","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":167,"box":{"x":69,"y":401,"width":823,"height":11}},{"id":"b2e21b73-fe9a-4cfa-90e1-e834e57f0414","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":167,"box":{"x":69,"y":416,"width":443,"height":11}},{"id":"52e4b7e3-ba2e-40ca-a724-93d6948c195d","block_type":"box","text":"e.g.","page_number":167,"box":{"x":514,"y":417,"width":24,"height":10}},{"id":"aa4b597b-4c8c-4fb7-99fb-b03dc4741592","block_type":"box","text":", recent representative bids and offers), credit","page_number":167,"box":{"x":541,"y":416,"width":328,"height":11}},{"id":"42269511-5b51-4d79-b78d-070b56cc7897","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":167,"box":{"x":69,"y":431,"width":834,"height":11}},{"id":"d272d792-35de-4d58-83d8-670336041a1c","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":167,"box":{"x":69,"y":446,"width":769,"height":11}},{"id":"78542008-92a4-4190-9e95-9aee5867b986","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":167,"box":{"x":70,"y":461,"width":797,"height":11}},{"id":"dc591ec4-fbc0-4fa8-a17d-ffee455f5561","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":167,"box":{"x":69,"y":476,"width":821,"height":11}},{"id":"994e3ebb-d16b-4b26-9c19-e9d4a59f5ee2","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":167,"box":{"x":68,"y":491,"width":798,"height":11}},{"id":"ad233880-0d60-4c78-8380-64e2281bec48","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":167,"box":{"x":69,"y":507,"width":825,"height":11}},{"id":"9d6947b3-f39d-4f66-bc00-8f8ef502bb2e","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":167,"box":{"x":69,"y":521,"width":791,"height":12}},{"id":"82b33ffe-27f4-4a48-8170-9b156a139fac","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":167,"box":{"x":69,"y":537,"width":814,"height":11}},{"id":"0eaff16d-f6ec-424e-938f-25cbe1c6b2e9","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":167,"box":{"x":68,"y":552,"width":802,"height":11}},{"id":"03ab90da-835f-4e80-ab92-b14df765b871","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":167,"box":{"x":69,"y":567,"width":773,"height":10}},{"id":"b3f3430c-e38f-4c24-8f2a-62e46ff02740","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":167,"box":{"x":69,"y":582,"width":795,"height":11}},{"id":"97673a6d-0529-4bd3-8df8-2b24eb06be5b","block_type":"box","text":"attributes of the tranche.","page_number":167,"box":{"x":69,"y":597,"width":176,"height":9}},{"id":"7963854c-41ba-4e9f-a5dd-c56275b7356d","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":167,"box":{"x":101,"y":620,"width":344,"height":11}},{"id":"1560dcfa-f52d-4c4e-97c2-dbbc0c272f19","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":167,"box":{"x":453,"y":620,"width":416,"height":11}},{"id":"a4a1dce5-f78d-48d4-83a9-477bbb70c8e9","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":167,"box":{"x":70,"y":635,"width":829,"height":11}},{"id":"b8fc77c1-7223-4aa9-9c53-5910a8ae29d5","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":167,"box":{"x":69,"y":650,"width":824,"height":11}},{"id":"f02a0cb5-e8ca-43a9-816e-929f808cbfd9","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":167,"box":{"x":68,"y":665,"width":838,"height":11}},{"id":"bcedcdbb-a322-43ce-807a-a0e81c599ec2","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":167,"box":{"x":68,"y":680,"width":820,"height":12}},{"id":"1bb5bc44-89d0-4e04-8780-3af130a0dff8","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":167,"box":{"x":68,"y":695,"width":808,"height":11}},{"id":"92172107-91fd-4fb1-becf-a0e1de64f22f","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":167,"box":{"x":69,"y":710,"width":824,"height":12}},{"id":"57e7a6e4-8dec-4d20-a2bc-2f33f95ea7b8","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":167,"box":{"x":68,"y":726,"width":789,"height":11}},{"id":"2d21230e-6b45-4f0a-b380-bacb388d30fe","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":167,"box":{"x":69,"y":741,"width":807,"height":11}},{"id":"cf21711b-c1d4-4d07-9afe-99d3a8f97c86","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":167,"box":{"x":69,"y":756,"width":824,"height":11}},{"id":"84eeea26-fba8-48d9-addf-1ddd767a58cd","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":167,"box":{"x":69,"y":771,"width":833,"height":11}},{"id":"0da71967-0404-4d79-9eb7-1447d72874cd","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":167,"box":{"x":69,"y":786,"width":830,"height":11}},{"id":"f47cd3a5-5ff5-47f6-8a6f-ddee20ff8b3d","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":167,"box":{"x":69,"y":801,"width":301,"height":9}},{"id":"7e1e1d7b-5749-488e-99a1-b0ee2962227f","block_type":"box","text":"Underlying Funds.","page_number":167,"box":{"x":102,"y":824,"width":128,"height":11}},{"id":"4deba1cf-83f2-4621-81ef-124075442f96","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":167,"box":{"x":237,"y":824,"width":621,"height":11}},{"id":"18c08130-68d7-4596-b39d-b13c8d763704","block_type":"box","text":"Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their most recent closing price.","page_number":167,"box":{"x":69,"y":839,"width":837,"height":11}},{"id":"8c1d00f1-f57f-41a8-8ef6-219913bb3973","block_type":"box","text":"General Valuation Information.","page_number":167,"box":{"x":101,"y":862,"width":220,"height":9}},{"id":"12caf8b5-db22-4eb0-8fc4-f61301660fd0","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":167,"box":{"x":328,"y":862,"width":564,"height":11}},{"id":"85c2b528-c885-410f-8ebc-c3f18f1bf5cf","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":167,"box":{"x":69,"y":877,"width":831,"height":9}},{"id":"8dbfd202-b998-4a6d-91ea-28da290fee5b","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":167,"box":{"x":68,"y":892,"width":828,"height":11}},{"id":"761ac6c5-bdb1-43b1-92e6-51cac2d99ea2","block_type":"box","text":"II-122","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3f0b96b8-e85d-42c8-9bc1-26da657f068e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b089e77e-8c35-46db-88a2-4a0e6c1067a6","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":168,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"597387b2-91e3-438d-b962-a922a2a8245a","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":168,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"b7dec597-65cd-4057-8476-8ac7e8781887","block_type":"box","text":"the revision.","page_number":168,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"2246c5f3-cd84-48b6-b0dd-53fedf9f861f","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":168,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"b0a49ee6-9289-4ca7-92f1-50fa0d9d52c7","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":168,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"20ac4949-49e3-49fc-96ae-4ebcf8f7b553","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":168,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"189d1d30-fa75-4498-85a0-00fca17bf4f7","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":168,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"b4212d1d-229e-45ee-81b4-f6395369bcae","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":168,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"70a37e47-6759-4cac-985f-8c868eea0ab0","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":168,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"27fb85af-7a56-4c62-ad05-5d166a1c3080","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":168,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"2d81a2a8-b348-4155-ae29-a68650f723ab","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":168,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"06268528-ba49-4fac-bc06-30eed3a34fc7","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":168,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"5f9be1e1-8d6d-4b34-9dd6-a78f4c4192fe","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":168,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"ade6be6c-6cef-43cd-bc6b-f37c4eec2bcb","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":168,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"e5e50dff-350c-4dbb-884a-b44f7ff31ccc","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":168,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"f4e58149-2f6c-413f-8a39-c995bcf2c3a1","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":168,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"ec7f4e87-606c-4958-89e0-5ac1d1473367","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":168,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"d8764c93-b913-4ca8-99be-9b7e3f38eda3","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":168,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"57d77b92-2e67-4c1d-a471-2098f608a5fc","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":168,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"d7b729ac-5bdc-47e8-897c-cce866c8e631","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":168,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"558dcc07-0c3b-44c7-8eac-b3f93ad9e447","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":168,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"f5f174eb-f9da-41f3-b2c7-cafcd9568177","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":168,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"91f366b9-7beb-42ae-b9c7-cba00c7bbc3f","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":168,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"6096a8e4-3410-410e-9ad3-bfa8864e0a47","block_type":"box","text":"Fair Value.","page_number":168,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"2bbb9a3b-db81-4a69-ab59-90d59cffb4dc","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":168,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"3028ac68-1e09-4073-9745-b9feb1074b32","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":168,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"26138fcb-82df-4856-810c-b250903270e2","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":168,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"b71696a3-5c1a-4142-81f2-9421a166c85d","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":168,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"39d5b948-07be-4ad5-ae98-f8bf36518eb1","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":168,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"d14e4dfc-80b9-4c8e-af8f-9a1137465c02","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":168,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"b873aa77-e62d-4797-baaa-bc260dbb2607","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":168,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"9cd963af-b850-4b4f-aa3b-c0248c6e4be7","block_type":"box","text":"(","page_number":168,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"f3fda810-6044-4d71-8d34-41dc1e6529cb","block_type":"box","text":"e.g.","page_number":168,"box":{"x":74,"y":530,"width":25,"height":10}},{"id":"7173cb85-ec0a-4da8-a721-d9bf54f44508","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":168,"box":{"x":101,"y":528,"width":806,"height":12}},{"id":"7d89a362-88ea-47eb-bdfd-70f84696b9a0","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":168,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"700dda03-b10d-4425-85b1-74b4d7d01df2","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":168,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"e553e7a5-734c-413c-91c9-f7f9173d5188","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":168,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"600d9b8b-35c2-4085-921c-fe1e7990ec3b","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":168,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"679f8461-28b9-440e-b06d-c6ee6d61f9b3","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":168,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"c1ee28f1-0bf9-42bc-94aa-dd0a31fb2590","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":168,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"0c79f1d1-aa97-4264-8eda-8dbea5c2902d","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":168,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"c511baef-2397-4cd8-8b91-ad9144e67d5f","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":168,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"55258a15-b2cd-42b8-ab8c-ed9472db3728","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":168,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"9a80b731-5bcc-4032-8fe3-d084b33e3072","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":168,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"57f7f4b5-82e4-4096-9813-bfefe8c894fd","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":168,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"70649565-3024-48af-acbc-0efa3a060729","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":168,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"87263722-7369-4eef-bb47-770fc840ce74","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":168,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"4f7695fb-7d1d-44c5-a76b-758892424328","block_type":"box","text":"pricing time.","page_number":168,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"528fcf6b-9c32-4911-b714-e717fae38b73","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":168,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"342cc8d8-fdf8-4522-a016-019157861d16","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":168,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"b276cce6-92ef-420e-86f7-398448ab9f80","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":168,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"e112a4a5-5c73-4891-8f24-793722c1de69","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":168,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"af91434d-0eee-4bab-8343-ec19de0d16df","block_type":"box","text":"assets and liabilities of the Funds.","page_number":168,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"d4f53353-327e-46d1-9e72-d368255aa9e8","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":168,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"35415442-c741-4263-8339-2ef5f7130b50","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":168,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"e929e396-cae1-4cba-925a-d6f272068117","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":168,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"e27cadf2-a95f-4472-b7a0-30b019f8085a","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":168,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"fcbb5a16-5bd7-45a9-87b8-0537dccf9cd6","block_type":"box","text":"II-123","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a32b73ca-ce15-494a-adfb-a745737ef2d7","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b7542c1-8e9d-493c-96df-faf295932073","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":169,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"956a0cec-c957-4849-9652-174df53e7d81","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":169,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"05ec170e-fe16-4d5b-8ba3-440818632d49","block_type":"box","text":"valuation models.","page_number":169,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"56534794-ec77-460c-80bf-603fc410ac11","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":169,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"8ffe8e6b-003e-4162-8beb-d6f68c51a454","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":169,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"be769bed-defd-4177-99da-f6b0407c405e","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":169,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"89336371-4031-4d40-9807-31a3a472f928","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":169,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"2fff90d4-5597-4af2-91fe-36dc13e76d6c","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":169,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"2ff7598f-fed7-4237-bab1-77820e64dae6","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":169,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"5d0ba8c8-cb16-46f1-b5e8-886422f9c8d0","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":169,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"24b09fbe-ec70-4274-8b1d-f2b99e3fd2a8","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":169,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"2b459e0c-0ace-4190-b3a8-4d5ceb36be94","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":169,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"ab9068f7-cb1d-4cbc-b96d-3d3b6fff9961","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":169,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"710021b4-78c8-4f37-a258-ec3f562fbfb4","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":169,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"bcfa3cdc-882c-442e-9eda-4c22fd90769b","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":169,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"1e109ad7-ea97-464c-b894-a44118da55a2","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":169,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"0c448801-c104-4e27-a53f-8617c508568f","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":169,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"a7d389a1-f954-4ec2-9b55-8c736389dcdc","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":169,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"950acef1-0350-4d84-8eae-ef768223cc70","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":169,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"3ad12a74-e176-4634-b366-277c33ec4b46","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":169,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"c232c06e-72d8-48b8-85e1-3709c4832eef","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":169,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"f5ccdcd2-a160-4ead-9d8d-c63b35997c0d","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":169,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"a3d0858e-5410-4a3c-b8d4-6aa5ca9b9d9c","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":169,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"5076121b-4998-4e94-a339-33a6ef2e4e70","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":169,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"c133ddd0-5e7d-4d03-afb9-c7e9df922874","block_type":"box","text":"party determination of fair market value.","page_number":169,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"cc2b6189-b521-47d4-a125-f58a797da185","block_type":"box","text":"Computation of Offering Price Per Share","page_number":169,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"aeaaab83-ba1c-449a-99ff-4fdf190d66b2","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":169,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"9124571f-05ea-4e16-a950-628966c3a8e0","block_type":"box","text":"the offering price for shares of your Fund.","page_number":169,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"fcd65470-8701-4516-b118-10d6fb98b26e","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":169,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"da763800-7f75-4360-94ea-3079e569661b","block_type":"box","text":"Transactions in Portfolio Securities","page_number":169,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"130a0e5d-542c-4ee7-a520-048e02d0cc4b","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":169,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"0d102e61-fcae-452c-a7fb-65313bfb8dea","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":169,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"7064bc6f-0f50-46e5-84b8-a64ee5438ee1","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":169,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"af67b615-bf47-4822-a74d-6766cc25e2c9","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":169,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"ec37b335-5765-4541-a6c7-11a96408db65","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":169,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"077ce23b-d7a3-446d-8a2a-67cdb6916247","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":169,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"c6b85127-3da8-452c-abdd-1041d1d6a057","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":169,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"a4268c0f-0014-4dc5-9e74-31023a29b29b","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":169,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"f0763507-f3c7-49ff-b0ea-4ddc5320e39f","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":169,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"b6301c95-a25d-4ac2-97d7-ec496e1f7e55","block_type":"box","text":"reasonable in relation to the services provided.","page_number":169,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"e2a05f2f-d8c2-4b17-8b22-162202d3c5f8","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":169,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"9061f46c-d4af-4369-961a-7c91dbda5462","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":169,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"b15174d1-4d0f-4739-97f0-14f5f3bd5eb4","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":169,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"cce0e118-5412-4c48-867f-c050e5859503","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":169,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"6e1b1d8a-f6b6-4132-8ece-1c6585fe2b4c","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":169,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"293a09dc-cc35-4e28-b734-bb258a9f8b39","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":169,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"04942416-56c5-4de4-9c97-dfd77d06d435","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":169,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"19b462f2-991f-4381-83b0-c562ca3f0ffe","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":169,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"ed27fa6c-2e95-45d4-b973-210f48050542","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":169,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"1affa38b-2ecd-4f59-90c8-74c8df804696","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":169,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"1fc70eec-aa84-4869-b8cb-e507d4c249d7","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":169,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"feddfc74-b970-4eca-99b2-c52dfb8dc19c","block_type":"box","text":"II-124","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4113a62f-084f-4705-be5d-697bcb66afac","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b10c0b24-1243-4ed5-9037-2d8e04729e76","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":170,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"678bccbc-b1c3-4ab5-9f9f-25f1dc4286ef","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":170,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"8b78bb47-8849-4584-bcdd-3c2c4b553295","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":170,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"337b9ddd-78c1-4102-847f-4f644ef6bb89","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":170,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"cf4051f7-9da6-4ba5-aa18-b68035ad356b","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":170,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"107e71d7-5a22-4fbd-8c5e-899599d80cec","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":170,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"8d8ae5bc-5c09-4eec-8308-bb5f72810899","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":170,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"c46b92cd-693e-47fd-8e92-18698f2d87be","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":170,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"0533c11b-eb8d-4dc9-acf6-835475b3ffd9","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":170,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"64b087b7-9206-407b-97c1-129f835deb4d","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":170,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"521a2395-a6cf-455f-9346-63e2be114103","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":170,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"4b050957-6730-4d50-a7e8-014b2897e03d","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":170,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"2b1a174e-0580-42fa-8e4c-5b6383ffceb2","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":170,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"fb0898dc-28f9-4f5c-b9b3-c97ea9121218","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":170,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"3e3b51b9-e3a4-45ef-8bf5-2b217246d119","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":170,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"823b862f-dcf0-403d-bfc5-3ffb4048feb0","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":170,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"ff5f5019-4f06-4daa-8eef-7495225b3795","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":170,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"d0e996e5-989c-4c96-8ae4-685a85509ba2","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":170,"box":{"x":69,"y":309,"width":808,"height":11}},{"id":"cd169919-47c6-444c-a9b1-aa349d27ef28","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":170,"box":{"x":69,"y":325,"width":818,"height":11}},{"id":"a994fcc0-3efe-40b9-b582-2b66042524db","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":170,"box":{"x":70,"y":339,"width":813,"height":12}},{"id":"6064e6e1-25b9-4b20-8ea3-a04623f1d5f4","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":170,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"c2dc424f-c869-4449-a5f0-67ffe3893b06","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":170,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"3c127faa-9c02-4474-82fd-461bd5bf1917","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":170,"box":{"x":69,"y":385,"width":790,"height":11}},{"id":"eb3fcb95-7fb7-4593-bae4-9f6a0b1a5e2a","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":170,"box":{"x":70,"y":400,"width":361,"height":11}},{"id":"1d41d70d-62e7-4d40-8c5e-d50c0bd68129","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":170,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"0a2b9ee3-6dad-4b86-a5f0-723ef5f2b41b","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":170,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"b0fa366f-ec88-4ce9-aeb2-a1325baeed91","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":170,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"2099fbdf-48e2-4b38-9627-93de62d94b2b","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":170,"box":{"x":70,"y":468,"width":785,"height":11}},{"id":"2332ab58-f1cb-4b23-9be9-f9c80bca6787","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":170,"box":{"x":70,"y":483,"width":806,"height":11}},{"id":"77bbea8e-38bb-4af5-99e3-229f12cba9d8","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":170,"box":{"x":68,"y":498,"width":772,"height":11}},{"id":"66690806-da0b-4c85-be1d-27539f64000f","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":170,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"90142bcd-0c2e-4cdf-a98d-23d5d4379c30","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":170,"box":{"x":68,"y":528,"width":769,"height":12}},{"id":"cd626fe0-7b21-464f-8679-662cbe729961","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":170,"box":{"x":69,"y":543,"width":801,"height":12}},{"id":"afa6be45-5ae4-4e76-908a-c343e42a351d","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":170,"box":{"x":69,"y":559,"width":778,"height":11}},{"id":"7acc0c2d-38de-436f-9f16-b92ac3e65f1d","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":170,"box":{"x":69,"y":574,"width":363,"height":11}},{"id":"6be05fa4-d7e8-461a-a826-12b133e49473","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":170,"box":{"x":102,"y":596,"width":749,"height":12}},{"id":"bfbee042-5b28-4cec-aa09-d9050ff4ea57","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":170,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"723af57d-8f72-41f5-8dc8-6bf9a2836d21","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":170,"box":{"x":70,"y":627,"width":752,"height":11}},{"id":"350ca4f0-853b-49f8-8c17-41471089417a","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":170,"box":{"x":70,"y":642,"width":823,"height":11}},{"id":"951efc96-602d-4475-b3fb-3b5731c481ec","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":170,"box":{"x":70,"y":657,"width":822,"height":11}},{"id":"94e92fb3-ffea-4966-b326-a635352ae9c3","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":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"f89c645a-57d5-4dfe-8ee2-b0f05cf8241e","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":170,"box":{"x":68,"y":687,"width":805,"height":11}},{"id":"d4e315a6-e258-48b2-a4af-074993838453","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":170,"box":{"x":69,"y":702,"width":798,"height":12}},{"id":"fa91b6d0-d636-41af-a4fb-fa980e33a287","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":170,"box":{"x":69,"y":717,"width":836,"height":12}},{"id":"54aaa561-5992-4299-9bef-dd00c3bcfa0d","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":170,"box":{"x":70,"y":732,"width":832,"height":12}},{"id":"d6ee5663-cd87-43f1-8330-38743c6b8c4a","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":170,"box":{"x":70,"y":748,"width":798,"height":11}},{"id":"77a5e257-5dd0-4610-b965-97347347aa2a","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":170,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"1df47608-0bf1-4a0d-80e4-867977a5e0d4","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":170,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"ae6f9c3c-052f-4189-a0fd-906bea2bbc79","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":170,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"3df1fa82-f48f-4582-b22b-4002705924c6","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":170,"box":{"x":69,"y":808,"width":797,"height":11}},{"id":"92f5c3b4-53ad-4892-a51a-ab8a67a12f1d","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":170,"box":{"x":70,"y":823,"width":815,"height":12}},{"id":"5fc203e0-5011-43d2-9089-cf4c4f48bc0c","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":170,"box":{"x":68,"y":838,"width":555,"height":11}},{"id":"de5c14c2-12db-4187-a6cb-f9b0cb3f88ec","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":170,"box":{"x":102,"y":861,"width":802,"height":11}},{"id":"ffc59268-0e93-4cd7-9294-9d87a720651f","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":170,"box":{"x":68,"y":876,"width":825,"height":11}},{"id":"8ab37f30-f550-4ef4-b31c-e0b00281de9b","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":170,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"41ba9d88-92e4-47cb-8c50-4dd188739e12","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":170,"box":{"x":68,"y":906,"width":824,"height":12}},{"id":"fe9e7310-0771-4735-a3ef-ab4ec7d5568e","block_type":"box","text":"II-125","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4eb9cd94-184d-4321-b1de-a2e19cd27ac4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff0f62fa-102b-42ea-9714-a8254f2e4e1e","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":171,"box":{"x":70,"y":45,"width":812,"height":11}},{"id":"cf633d2d-fb63-45ba-aa2a-91b3eff05946","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":171,"box":{"x":69,"y":60,"width":547,"height":11}},{"id":"cd252675-3192-42ea-9cd7-1151156ab85f","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":171,"box":{"x":102,"y":82,"width":804,"height":12}},{"id":"d7bd2b46-9d18-44a3-b393-726513746f36","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":171,"box":{"x":68,"y":98,"width":806,"height":11}},{"id":"8c47e69b-7418-4cd4-966a-2a9c1f2c76d3","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":171,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"eed1c5e1-e9cd-4193-84da-652c2eff9697","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":171,"box":{"x":70,"y":128,"width":777,"height":11}},{"id":"c97159f8-1021-4100-b3e1-08741fbd14bb","block_type":"box","text":"brokerage.","page_number":171,"box":{"x":69,"y":143,"width":74,"height":11}},{"id":"607309a0-749f-42b6-b9e2-73c8159dcd8e","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":171,"box":{"x":102,"y":166,"width":781,"height":11}},{"id":"aa63dd7f-5f1a-4187-89b1-c53c9a87ed22","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":171,"box":{"x":68,"y":181,"width":810,"height":11}},{"id":"f5b2b0ad-e481-40a3-ba8c-95ab2c2c77a9","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":171,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"8cfb64a4-1e4f-4923-9b60-5975960519ae","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":171,"box":{"x":69,"y":211,"width":818,"height":11}},{"id":"654f9ecd-1e25-4b1a-a97f-15a65f576ead","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":171,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"4346708e-86f8-470e-b135-57488e486ed5","block_type":"box","text":"Section 28(e).","page_number":171,"box":{"x":69,"y":241,"width":99,"height":11}},{"id":"7ca27a8b-9475-4e19-84f2-4a21707e3cdd","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":171,"box":{"x":102,"y":264,"width":755,"height":9}},{"id":"01aa6a86-505f-46fc-98e4-5d348691338f","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":171,"box":{"x":69,"y":279,"width":828,"height":11}},{"id":"c33c2cf6-9ae6-4035-8195-23f27b1c97b7","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":171,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"75c855f2-220d-480d-aca8-f58f104c9ccf","block_type":"box","text":"execute transactions for those mutual funds.","page_number":171,"box":{"x":69,"y":309,"width":319,"height":9}},{"id":"4f00a0cd-c743-4a82-8106-fcbc9060c556","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":171,"box":{"x":102,"y":332,"width":770,"height":11}},{"id":"1bcf0b6d-3b09-4998-a51a-b33b58c27c0d","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":171,"box":{"x":70,"y":347,"width":825,"height":11}},{"id":"fa8f2b65-76ef-4020-8920-7228523fcd15","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":171,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"d5f061a0-30a7-4fee-a553-90c39c71fb31","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":171,"box":{"x":69,"y":377,"width":805,"height":12}},{"id":"1de7c70e-f612-4329-9880-918f36353470","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":171,"box":{"x":68,"y":392,"width":773,"height":12}},{"id":"79d3baf3-1029-466f-9e2d-eb18eb39d7b1","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":171,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"d9899ef7-addb-4d56-9f6c-7d049ab2f28a","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":171,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"59ebc683-88c4-41e9-9af7-eb91737ac651","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":171,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"18000583-2842-4dbc-b406-57c4777aff24","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":171,"box":{"x":69,"y":453,"width":540,"height":11}},{"id":"8768e007-f2d2-4b26-a2dc-7cef1dd43cfb","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":171,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"80bb7219-004f-45cc-b8df-964af3d9a9e0","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":171,"box":{"x":68,"y":491,"width":597,"height":11}},{"id":"2a869259-d5e2-4677-a164-49db1ab2968d","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":171,"box":{"x":102,"y":513,"width":802,"height":11}},{"id":"4dbe0cd6-885b-4270-a2e5-18f25f662a40","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":171,"box":{"x":68,"y":529,"width":822,"height":10}},{"id":"b06a2bd4-25ae-4686-bdca-64169718b290","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":171,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"d0dc6452-e900-436c-96ff-4853cd601802","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":171,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"6f8a199c-8690-41c1-b655-8eae17d8f2c9","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":171,"box":{"x":69,"y":574,"width":762,"height":11}},{"id":"405d4e57-af3b-400d-94a5-cd705538ed1b","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":171,"box":{"x":68,"y":589,"width":770,"height":11}},{"id":"21a97114-be4b-4574-bea8-5b3c7d0bca1a","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":171,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"db7a42c0-8c5d-4390-9e48-096896bfb711","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":171,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"43581b99-c9b8-4d90-b4ff-00625de89708","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":171,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"9188bdeb-cf39-4c78-8356-642ef5334cf9","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":171,"box":{"x":69,"y":649,"width":645,"height":12}},{"id":"d1966501-319f-4660-b520-c43283217eb3","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":171,"box":{"x":102,"y":672,"width":797,"height":11}},{"id":"6e5978c0-44fe-4b6c-8a20-5b43683d1200","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":171,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"ca72b7dd-dc3d-484b-8cf9-cbfaa27c93c7","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":171,"box":{"x":69,"y":703,"width":839,"height":11}},{"id":"048aedbe-bd81-4d95-a803-4267d1e81dd8","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":171,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"1b2e8191-ee66-4a8d-a1d9-aedb576ff2ed","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":171,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"c5d90fd4-20d8-4075-b6f4-246a3dac33dc","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":171,"box":{"x":70,"y":748,"width":730,"height":11}},{"id":"8375b585-bfa8-497a-8030-c25f8b8aeae5","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":171,"box":{"x":102,"y":770,"width":800,"height":11}},{"id":"4e3c6e27-d032-4dbb-bce6-316fb6629791","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":171,"box":{"x":69,"y":786,"width":807,"height":11}},{"id":"23395365-1a13-439e-9346-d48fa0276fae","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":171,"box":{"x":70,"y":801,"width":812,"height":11}},{"id":"1084fc64-3491-45c8-b975-db010acb705a","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":171,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"5f617b73-7c78-487f-873e-c8d8eb858279","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":171,"box":{"x":68,"y":831,"width":827,"height":11}},{"id":"cd8b2182-9853-4822-a382-a5df04e593ab","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":171,"box":{"x":68,"y":846,"width":817,"height":11}},{"id":"1b0461d4-3d97-4ac5-a720-9b2d7c744dce","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":171,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"ce277b49-4df5-4888-8eb7-0c71a630ee0d","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":171,"box":{"x":69,"y":876,"width":700,"height":11}},{"id":"bf9f29ba-996e-477d-bcad-92b7a874bf51","block_type":"box","text":"II-126","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9734c07e-8015-42b7-a124-4691a3845db4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"59bac78f-4a9f-4940-9c8c-9f029d4ab909","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":172,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"d5586340-c16e-4aca-a91d-44d13a5b2d4d","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":172,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"59e42a1b-c3c7-4776-bbfd-e90c400b2884","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":172,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"de4f687f-664b-4407-88e2-abaf2119344d","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":172,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"4218ba73-9dee-4797-a35b-89b8eb115fcc","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":172,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"d34c56c6-f3cf-4782-8e25-cd650d0edf3d","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":172,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"8dc88c74-5fdc-46bb-a090-a61612adf2c8","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":172,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"0335f42c-4ec3-4e23-acad-495c0baa4f3e","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":172,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"72f55f20-d714-4575-99d9-553be1c91b33","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":172,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"b6670ba8-5179-4d7d-9989-5ef46cda729f","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":172,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"b06ef888-d585-4be8-aaa8-f786b075ef6a","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":172,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"c2accd38-dd81-43d7-ac7d-b5cb84b6fcd6","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":172,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"6cb77cb3-b491-48dd-ba14-c847472f2d32","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":172,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"191421f3-f28a-417c-b651-669bd497e8fa","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":172,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"bc271295-79a3-497f-9253-7928119a07f4","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":172,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"91949473-29c7-47f7-8c48-cb2af6d3b60f","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":172,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"12b944cf-b46e-48a4-8b11-6d0a46d3b44b","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":172,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"9d50b36d-0b43-4dd7-bd4b-8d7c517311d0","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":172,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"f8faf778-afa2-4f1a-a268-de2c51534b0d","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":172,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"f3fca067-d92e-4f00-ae0d-0b6cdf8b258b","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":172,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"0cb31fc6-9393-4d93-8a4d-db49ed560706","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":172,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"bc8b7b0d-b845-4da0-a488-b72e75673bf9","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":172,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"9b2dccda-9286-451e-a1b8-cf158460f8b5","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":172,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"22e5f529-4da6-4b87-9948-5eaffb9192bf","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":172,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"6ff46207-58b5-46d3-8c06-52c3044b7873","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":172,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"178d4725-d0cb-4f24-93a1-b44f74af0854","block_type":"box","text":"accounts and compliance constraints.","page_number":172,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"ff819d42-70a6-45f3-879a-92dcf029cd28","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":172,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"298494e9-675a-44c2-9f7d-9f52793d8b53","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":172,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"6593756d-70b5-45c7-afc6-82df1a515dfb","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":172,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"faf30b0a-c1c0-41ff-acb6-8102b26333fa","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":172,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"76484377-d169-4777-9d8a-2c0f1bab38ea","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":172,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"b177ffd7-4d24-4eb7-b736-23a5a21efd5f","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":172,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"f014f209-9937-4ce6-8d8d-435cfc2ba2ec","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":172,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"0fd26b49-8bb6-40e5-bfe6-934bdb35261c","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":172,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"e2fb34be-18a7-4206-8155-81995e077d5d","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":172,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"2d28bd68-32dc-4a34-ad98-e6d33ecaae4c","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":172,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"4325f889-b959-4a11-be99-1218670bce17","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":172,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"fb4344a3-0f7a-40b6-817a-ae5f1e8e4212","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":172,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"48da89d7-1ee6-4811-85d9-18dc17457cce","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":172,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"2dde893c-9b7b-474a-93bd-944e20879787","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":172,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"110337cf-7e8b-4068-9100-9e63258084f3","block_type":"box","text":"clients may be used as well.","page_number":172,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"717cf71c-ffd6-4f8e-9574-dab973ea1f65","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":172,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"c8b2a11a-e8f8-4a35-b98a-8fa7f56dfb1d","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":172,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"2e444f50-225b-49ee-b591-319de9577acd","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":172,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"db94de3a-9e8e-415b-baaa-4bc9b4b2f659","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":172,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"398e9f45-2bfc-4681-af37-f0830a077e95","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":172,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"93f64731-f878-489a-9525-02358d1c6bd0","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":172,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"f408ca94-c08b-491b-b7c1-cf8833ff554e","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":172,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"38f5c1f4-1c71-4e37-81cf-12ec00c0a1f3","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":172,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"25377e04-f27d-48b5-bebc-1c52b6d113d7","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":172,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"e4dcdd72-b18a-4f33-95a9-f48885ffaa13","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":172,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"efa86918-46b2-4633-a227-fa6fe465c3d8","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":172,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"bd1d2eda-0cb7-421a-8924-57d0026da764","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":172,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"811b5e31-0773-4940-b115-11c05111a1fa","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":172,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"42d260dc-16c6-48ac-ba48-b545c39b0850","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":172,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"53f66c1d-4185-4a73-88c1-10bc81434a51","block_type":"box","text":"II-127","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd058141-7ca7-4b4e-a52a-390b26a0dd0c","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f4431e5a-3d62-4c15-9200-0ced7129ee2f","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":173,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"b5342d9e-6a04-43e8-93fa-cd2057f114ea","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":173,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"0ea1940a-3b4d-4146-b09e-fcc939138ec9","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":173,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"3c8479a5-9f98-49f6-b298-45c95750616e","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":173,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"462b3b14-fe06-41fa-ac0b-2b647cd95a9c","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":173,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"482978d3-2caf-40f9-8289-7a8c6abf4b3a","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":173,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"d4f27470-0d12-4d13-b2fe-45273132622a","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":173,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"a22fdf6d-2f25-4444-94a6-31a4c9f2566f","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":173,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"8ea4c262-5a8c-4e28-b7be-039bc3f67097","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":173,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"ada9f0c7-27a3-4c93-93d5-d3d46a104e9e","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":173,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"c28b6c79-351e-41fb-8620-35b538a29e59","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":173,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"e8f04cbe-ba1a-4e19-804f-24c0e29ecf30","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":173,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"7648d610-3db3-414c-a909-7438df27ed69","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":173,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"12a5251a-fa41-49b2-98dc-2569e8c4ecd1","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":173,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"13d86228-6476-43e2-bdfd-c5e5b7cea493","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":173,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"09827f40-4307-42d0-8c8d-fce52b689e7e","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":173,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"ddae60c8-70ee-42b5-b1dc-9854832537ab","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":173,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"ff41002b-a09a-4c82-abb1-d8748acd128b","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":173,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"5736b386-0af2-40e6-a766-765e1b5185db","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":173,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"7f8dd8d9-5ce3-42bf-9f1d-ac6cd829d2c7","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":173,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"243463d4-9c3c-491f-b519-0d799321610e","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":173,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"9c617ff1-3f54-4a6d-9262-9c6295577834","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":173,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"61d9dd1c-2cde-4468-b449-3dda313d7c41","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":173,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"2101560c-4815-4bac-ae22-a38ccb08b9eb","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":173,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"b347a974-6b71-46e5-a3d3-6c6bacdf4f77","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":173,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"8e125563-75a5-456f-8659-76aa8692cb05","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":173,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"5a9707b2-3cc4-43cb-b93e-24c39f88277b","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":173,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"10377541-60f3-4bce-b6af-ed9caea7d794","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":173,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"718c5479-4d42-4a4f-9159-c17e196f9409","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":173,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"22005b5e-333e-4e2a-8fe4-4b76323d2ed5","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":173,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"f16265a0-fadd-47b5-a821-f4d3f80606b7","block_type":"box","text":"Portfolio Turnover","page_number":173,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"6b45b937-d93d-4fd3-9cd5-c713f90d21ed","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":173,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"8aad6740-10cd-40ce-8b7e-63868f35c05c","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":173,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"890f25ae-2a65-4442-9c18-13b6547fa056","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":173,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"07e45bbc-3cb3-4dc5-b5cc-b77d37c9fd31","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":173,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"7d130966-b419-4c02-9ea8-aad9754442f2","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":173,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"6c53c175-73a6-49e8-b318-8fe060ee5b71","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":173,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"0c59ac3f-017b-4f8e-b1df-cb927af8dfd8","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":173,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"5fb56003-6c45-4522-9dcc-98270dcdfec3","block_type":"box","text":"Dividends","page_number":173,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"741bd8b0-24f9-417a-a7c4-84f175267b25","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":173,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"5c74d46a-14ff-43dd-bbf5-605b9b3f007b","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":173,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"59cf96fa-51ce-4f75-82f7-1519f3e6f152","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":173,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"d5d5aed5-77b2-434e-be45-f5d0fe988576","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":173,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"fe5b2d17-0eab-428b-a1e0-cec786f9788d","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":173,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"80a923db-833a-41cc-993d-bc51cba2ec0e","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":173,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"ff34dda1-d27f-44ae-951e-e63a755c81ac","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":173,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"ed194679-5067-4f3e-9a41-2610d40e8f91","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":173,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"69b09429-fb73-4d0b-a8dc-687d8a4b6272","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":173,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"1a2c82b9-4f71-4101-908a-1698d89f6732","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":173,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"830452e3-7183-4122-8fe7-b37976327c70","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":173,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"5ce26d2b-a4f7-44d2-ad9f-eb95ae732602","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":173,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"8414f86f-fb81-412a-bfa5-5bebefae181f","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":173,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"213aab90-e0d5-45a7-a382-06088dfbfab9","block_type":"box","text":"II-128","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a4b96687-0e50-4062-a5fc-81afce2b68ef","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39acf7d0-73d9-4cf2-adaf-b80eb7180491","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":174,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"d4ee9705-942f-417e-b0e6-cd4faec23313","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":174,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"fb9e9104-351a-480b-853f-caad8d57510b","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":174,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"3d7ebb86-5704-458c-a623-aeae1ecd7612","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":174,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"8b19191b-c32c-4f0b-8db3-5e6cf3c23709","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":174,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"12f4a742-e3d3-4edd-b34d-b490ac7554f5","block_type":"box","text":"Taxes","page_number":174,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"0eb24c6c-77b5-4116-b4c1-e0a5eb41da18","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":174,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"aa8f1393-c881-4c0f-9fb6-ec43e7862549","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":174,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"9fc1cddf-234c-4ece-ad8a-52d753459281","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":174,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"3505f3d5-516c-4e6a-9010-ef52a967727f","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":174,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"58e7b4e1-86c4-4442-8b52-fc281336d4d6","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":174,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"02dc4fc6-d075-409c-9013-b9a02355772d","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":174,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"89643483-d3ef-4fa5-b962-87186838f9e7","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":174,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"cb29f8a6-5830-4d51-91ac-5432c453d475","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":174,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"fdb9a4fe-fe08-4c84-90eb-10a06cac8d09","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":174,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"1761fd96-fc83-4cc5-8aac-691ec4869a9c","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":174,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"e69a40b1-380b-45f1-a16c-4a885389aabb","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":174,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"35635e14-00da-4b08-a6c1-ca9430ee9d3f","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":174,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"fd184404-a962-4f90-b546-db88e73dbf55","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":174,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"6a58d8c0-50f8-4006-b388-48d3fc2ce6b4","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":174,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"8c78ad6b-8c23-4ae1-ba13-51286e1e24ac","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":174,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"d928a45f-d759-4b47-85bf-f9a77f745f99","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":174,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"084b3a6c-16b8-4baa-b784-cdc286f1cb7c","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":174,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"b07a2064-0a8e-4a6c-b0c4-3f94514e76dd","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":174,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"84052358-83af-4ded-a80f-9a7514864bc1","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":174,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"7bf89de1-33f7-4a42-b294-09717fdca986","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":174,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"658f8c70-aebf-4479-a312-59141c72aec3","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":174,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"05664901-1436-4aea-ad76-b35b98f4d78b","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":174,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"37e65734-6c68-418b-bfd4-6fe99ecb5f6e","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":174,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"a8aba4af-2dee-43dd-8802-b1e597b2c969","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":174,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"d4171376-eddd-44a5-ac14-9700d7db827b","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":174,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"42c4641d-7ee4-49dd-b7fa-2cc21cb2bdca","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":174,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"4290193a-e8cb-4fcb-9d7b-8456d05c8330","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":174,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"908faf25-6094-47c4-8afa-eadc816e52ff","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":174,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"66e60ba9-5454-4f71-9a71-f5978c08d39f","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":174,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"1ec42a0f-faf3-4962-9ceb-d6a0629e0da5","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":174,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"26e8ef09-1c89-43e1-9b7f-95e4dbf3fa17","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":174,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"b5066f67-d3d9-4bc9-a123-b346b144b76f","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":174,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"dd2b97f6-5b4a-4903-9110-aa09c9e3393e","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":174,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"f522f310-c540-40e1-834c-0b4b0afe9af8","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":174,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"beb17af4-9a80-48eb-a6f2-d0d4839510e9","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":174,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"b2e2d384-b4ed-418f-b3b1-2a9cae86d925","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":174,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"48c07474-33e5-40b8-8bdd-95ae221bb76a","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":174,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"eb6cc206-21a9-4d76-aa1c-c2db9afb2612","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":174,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"860e5f75-f287-48d4-aacb-1061531f8fda","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":174,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"413aaca9-17d6-4c8c-a4c1-1d432ce93c82","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":174,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"285cd801-eae2-4057-a338-7222be8ddd5f","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":174,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"7822459a-417e-4c90-8973-ef32fe50bb3b","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":174,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"53ca087c-c49c-4a43-aab2-331cc2d007fd","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":174,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"0e78a76b-605b-4f2a-ab1f-2d73b7d45b56","block_type":"box","text":"limitation.","page_number":174,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"aebee1e0-5bba-4fbc-a515-7f241bc8251d","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":174,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"64dcd43a-24fa-4c40-affd-0a7a254bccb4","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":174,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"2a18e4a2-c11c-463f-bfcd-437c27bc5ad4","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":174,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"630284e5-e8c2-4d4a-995a-3416430ca266","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":174,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"0b9da100-db80-4757-9d03-9e25f2483cfd","block_type":"box","text":"II-129","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c526b837-b91c-4185-9e65-210189e801dd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c41bb1b0-b9b5-468d-bc39-b9632bf8dbce","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":175,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"0103e9a6-0ecd-4e52-bb6c-6b3f0d2de2dd","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":175,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"f9d89166-36dc-4996-865c-ef275f3c6a30","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":175,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"d5002190-eefb-4be0-9e45-f7e0fa9661fe","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":175,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"dc51db10-236b-4952-a46d-1483eb58552a","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":175,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"ff6bb7ea-5c62-409d-a8b3-107b73795b86","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":175,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"69c7c7a3-c768-4c63-acf4-94187e50d1b6","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":175,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"14220134-ac0e-4d34-9a95-fe2b9d95400b","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":175,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"71d59537-a33d-4106-8e18-a5922585667b","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":175,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"067b97c6-d4bc-4a19-bfa9-97d50c47fe3b","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":175,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"6979f6f4-3aa7-4b32-9be8-88c7cc103a18","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":175,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"8162bac8-b864-4a1a-9c8b-259103fd6c1a","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":175,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"d5d08a53-027e-4d3f-9013-6786d037e779","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":175,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"016887e8-682a-4a75-b2ff-39f8bf522e1b","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":175,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"743c1d1d-6dc8-48b6-a31f-fb80f077c90d","block_type":"box","text":"constitute “qualified dividend income.”","page_number":175,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"277b6718-201e-4e98-8032-8457123f1d90","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":175,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"feb7488c-69e2-4545-9983-20eeb38ac3c6","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":175,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"8dab06d7-dcab-4157-8fad-89004d8e3e31","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":175,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"6c578cf1-dc31-4df8-a774-d41bc4463411","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":175,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"89eb3657-6e73-42ba-a036-834d05355143","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":175,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"9a7e1bdb-b584-45b2-aecf-3609c0ce24d6","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":175,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"cd319892-0159-4f0a-ba75-2f46339d8e56","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":175,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"9d8ad013-4dfb-4eea-882e-ee9fdc78b993","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":175,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"5ac522d0-4593-4e3e-bdca-470951f92312","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":175,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"58ef2003-6b23-4740-a5ee-bd0bfd03aa32","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":175,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"6d699c0a-ed27-4227-a866-0132051b7734","block_type":"box","text":"against their taxes.","page_number":175,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"bcc45014-a417-49dc-b9c2-932cde912047","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":175,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"2ae249a7-ca45-430f-9f95-41fbd827d589","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":175,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"4ab84834-0121-4616-b3c7-a93396bdabec","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":175,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"f03a5ba3-44fd-4701-b56b-058ec04733f6","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":175,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"ba3b0022-8480-4f40-8035-bc42faaacbbe","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":175,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"995ab99c-d14e-4213-ad90-8f114f8886be","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":175,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"66af02f6-795a-42ff-b61c-d90339f8a670","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":175,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"9764baf0-99ea-4dbe-a242-21d80647d60c","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":175,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"71156f63-0868-4f4f-ac1d-4c27633794d7","block_type":"box","text":"dividends received by the shareholder.","page_number":175,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"9d9d4277-f457-4e64-932c-1a34ccc5a105","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":175,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"424a8593-a063-4983-ba5f-d2900b8c2347","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":175,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"9e3e6b00-a899-494c-9b5d-89c17dc26f81","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":175,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"dd3b65da-6346-4b33-a413-f4cb314c0e28","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":175,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"356b25f2-de57-4d89-acd1-e4a1af44f60f","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":175,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"f548e2c3-15cb-48fe-9fa6-9f4955858665","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":175,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"ae8d3f29-e44a-4f16-a6fe-3e2ce7b6ff51","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":175,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"808435ce-af4f-4da5-8a57-385dd139170a","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":175,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"5dfd1405-3e98-408e-9af0-a40379f35642","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":175,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"6b834511-4a1e-411b-bc85-26f8bf7da9f5","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":175,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"b8da561e-bc6a-4e82-a058-4540d71c753a","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":175,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"01419a56-4a4e-41e3-bc02-7ff1c73b28e9","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":175,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"5d1a56c3-2883-4972-a809-e67ea7b47ea6","block_type":"box","text":"taxable year.","page_number":175,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"ff6d2657-1c15-4054-963d-38cc956ccf36","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":175,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"35eb0fca-aaa0-4c5e-be1f-b2377c542207","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":175,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"327e1a05-71ed-4901-a92f-93331f233304","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":175,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"19cf8b0d-5ce8-4469-842b-3e780160dacc","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":175,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"fea0fc8b-35d4-402c-99e7-226c2796c63b","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":175,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"372f0faf-fb7f-431d-b00c-e9f9695d7a8a","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":175,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"80f62ccf-4da9-4bf7-b21b-4be3489036f4","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":175,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"2f009824-46fc-4b71-a0ad-e3418d1c8471","block_type":"box","text":"II-130","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b6974532-46e2-4262-8892-98c4531996ee","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e232f47b-5584-44f7-a99b-247825fa691d","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":176,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"0a32b715-a3a3-4f21-a2f6-6669feae555e","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":176,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"1e470288-eaaa-42a2-8282-d98775d0455a","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":176,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"a2d75c44-3d22-473b-89a5-2b41bcd06de8","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":176,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"06a0124d-48ec-4504-a7d0-c4046684b9d9","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":176,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"913d8c84-44ca-4279-9822-6aa78fd05027","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":176,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"e0cad0a8-88a0-45fa-adff-f16efc304c66","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":176,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"58c47d0d-ee4a-48b8-9148-858469180666","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":176,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"5c4a5ada-ba8a-4948-bd66-d71a0df41e11","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":176,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"e3cd53d2-df38-432c-b983-ca62de300d5c","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":176,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"cdc7365c-3707-4647-a1cb-92b8c25e9791","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":176,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"2b77c8f7-2100-474b-9704-0fd1708b248c","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":176,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"28163256-6b50-456d-b429-94bc95c4765c","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":176,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"f2c75415-e884-4d70-af0e-401f34c2f9c6","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":176,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"9267c3d4-f93a-4c6d-be30-9a333669506f","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":176,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"599d8ec5-c02a-4ea2-a05e-ea943fb6c9be","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":176,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"8a90de43-94ca-4780-a500-89b0415809fb","block_type":"box","text":"redemption of such shares.","page_number":176,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"738a3513-a140-421b-aa60-9d7a8fce510e","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":176,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"c79aeba8-6799-4f15-a03e-7c869ab9fbfc","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":176,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"1cd59c42-dae2-48b3-88d7-89cde6f2493f","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":176,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"13fb28d7-9fcf-4b43-951b-f62867a52472","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":176,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"de3fd04d-cf0f-4573-a01a-1cca1e1efeba","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":176,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"700cfd10-bc4f-4894-bac3-ba742def0b65","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":176,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"3ca1d557-5d4e-4007-a40e-30f3660c82a2","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":176,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"3ee0a0a6-b7ee-4adc-8e23-cbc88f65263a","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":176,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"ddedc2c5-712b-4cd0-af22-45d7ba28c43a","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":176,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"d4b672dc-6c61-4ee0-a308-50558fe8c553","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":176,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"d12526c4-933d-48d8-833d-dc300babe1a3","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":176,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"1c63d299-02f8-44fa-a3b1-af7832da6041","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":176,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"637a0e56-aa8d-46aa-b580-fb3e045b75d9","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":176,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"bbd6e8ba-98cc-4cd9-a88b-f3798d8e980d","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":176,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"9a36127e-a303-42bb-bfa3-8bb51023ecb4","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":176,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"297c3295-61e3-4e71-b610-77d7b9fe9dd8","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":176,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"81eed20e-3254-455c-b725-45bbdbc9a329","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":176,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"edb1617c-17d6-4bae-8d01-0b338dd49af8","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":176,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"9c556d4b-5832-4d6b-a863-dbbf98f611f3","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":176,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"0ccbe7dd-3c36-4d0e-a089-4f874075604c","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":176,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"a81743cd-7e56-48ad-98cf-36d34253023f","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":176,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"4e8e5be2-94e8-4af3-91e7-7126c8968d55","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":176,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"6941e5f7-6cf8-4571-87a0-ad1a29f8fd87","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":176,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"71675710-29e1-4536-a72a-eb2e3dab6d22","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":176,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"375712fb-5143-4c45-a755-d3359bccd51b","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":176,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"3d8d2023-dbf7-4737-aa49-7b0d98e329f0","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":176,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"cdaaac63-f310-49d2-8aff-63f82507f568","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":176,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"8f8d5df8-48f7-4cd9-97dc-56bff9e43870","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":176,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"2251d80a-3145-4753-8503-b8a5bdaaa536","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":176,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"c0a95194-4241-47c9-ac52-a939c7fac4f4","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":176,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"36a12ebd-5633-4c60-a748-297647a633b8","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":176,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"8be3715d-5666-4681-90a4-3da05a974dad","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":176,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"4d7587a6-86a7-413a-93cc-69774a4acdd8","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":176,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"ef2e9d80-0956-426f-8d87-62583f3fcf2e","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":176,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"ace916f4-5c9f-4b76-8a86-c566e7b3643a","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":176,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"bce76697-978b-4f1f-8f71-28bb45b62149","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":176,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"96349f8e-9a8a-4ab6-8fe8-4f95428ff3b3","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":176,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"b220494b-6375-435f-be9f-288ef89ee9b8","block_type":"box","text":"II-131","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"37cb8c6d-9b90-4f89-89c4-dd45ec1dd1dc","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7fa7752a-73f4-4e69-82d9-c1b9a91f6b09","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":177,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"70d96f97-060f-4a86-9246-fa70d522d5bf","block_type":"box","text":"in subsequent taxable years.","page_number":177,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"fee578df-cf08-4564-b6fa-131e36ee7916","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":177,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"79fefa01-9b7d-4c2d-9a09-8406ac866bbd","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":177,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"2ea03b76-0c6e-4fdf-84f5-5e2df34de939","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":177,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"c6e69b3d-a5e4-419a-8503-f34e4056012f","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":177,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"fbd04a4f-5f4d-49c7-a949-742f08fa8f08","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":177,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"6111583d-68e9-48b1-ad55-adebd5bbb709","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":177,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"2bebab83-26b1-4032-a68f-8611bed722e6","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":177,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"ec045714-f21d-4ef6-832a-67d59f2d5fb7","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":177,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"25bce983-3f27-4175-b3a2-9d82e2a5c384","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":177,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"b31a729b-ddaa-4828-b181-14a2478e5024","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":177,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"2aab329e-b4d8-4853-91ca-9d2ec7f68f86","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":177,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"30f4e102-7f09-4c8a-bea1-e276e6a7674f","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":177,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"61d3b5a8-e2f7-4f03-a22a-b4e5300e9e5c","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":177,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"04293438-3932-439c-9508-b30ff3b71bcb","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":177,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"29e65086-58b4-4572-ac48-719e7f5268c1","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":177,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"fd3e4cbf-d5f9-40be-baab-c9a6f6b7caf1","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":177,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"999ce824-c282-4e40-8989-759e989b49e6","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":177,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"7a3cf3aa-a4fd-4531-bd5d-052937fec31f","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":177,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"9e493ed4-a9de-4de8-abdc-61d63b418433","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":177,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"9638388b-7d43-4b4f-ae41-e160d27bfb51","block_type":"box","text":"dividends under these rules.","page_number":177,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"5e894e4f-c7c1-46d8-97b7-c043d5876e14","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":177,"box":{"x":102,"y":392,"width":747,"height":12}},{"id":"bb84d207-44c5-42d2-ab15-13e0420dfe60","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":177,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"da917e67-326b-47ec-9ec9-0c8707ddbaed","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":177,"box":{"x":68,"y":423,"width":829,"height":11}},{"id":"c6b69832-0aaf-4027-8e72-0eea7e2d6c76","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":177,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"b2fd0301-f632-4f1c-a1d3-710dee20d331","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":177,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"4a0da36b-37b7-4617-a9d1-497eff636023","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":177,"box":{"x":69,"y":468,"width":800,"height":11}},{"id":"731faf80-2054-4c43-a80e-e367e015745f","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":177,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"c2c0fdb0-5453-4310-96c4-3f00f830e137","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":177,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"30d3ddec-7c6f-4af8-8ed0-647c14006e41","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":177,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"4d212a0e-e206-42de-a5b1-2e423bbcf494","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":177,"box":{"x":68,"y":528,"width":820,"height":12}},{"id":"381c3fd0-8f71-47d3-8d56-37b143279ced","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":177,"box":{"x":69,"y":543,"width":833,"height":12}},{"id":"2a9724fd-c5b2-4e00-a8cd-e102dcf01bda","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":177,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"2e286d26-f57d-47ec-af6b-4b193f79094e","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":177,"box":{"x":69,"y":574,"width":774,"height":11}},{"id":"07d11b97-56c6-4be7-ae4c-9438fe4db3f5","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":177,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"59b1a8bf-229e-4459-8bba-00f846df2853","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":177,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"77920bd8-812e-4723-b9d0-bfbeecb5378b","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":177,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"67694c5b-5559-4666-9c30-9663f0dc1e0d","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":177,"box":{"x":69,"y":634,"width":823,"height":12}},{"id":"11e459a5-36a6-43bf-a594-e6eda91a9134","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":177,"box":{"x":68,"y":649,"width":827,"height":12}},{"id":"b31b50df-69f0-43a6-8c18-02514f4269f0","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":177,"box":{"x":69,"y":664,"width":596,"height":12}},{"id":"14c18022-f502-4c72-af5d-118042255f61","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":177,"box":{"x":102,"y":687,"width":802,"height":11}},{"id":"d2623078-d8fe-449c-815d-07028b480bf1","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":177,"box":{"x":69,"y":702,"width":827,"height":12}},{"id":"b5d9056d-bc72-4b57-8ee2-595696638e28","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":177,"box":{"x":69,"y":717,"width":804,"height":12}},{"id":"368776b4-a050-4e17-8fc3-da49a166bd86","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":177,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"be6399ce-f64f-42ff-9aa2-a2fa37ca3842","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":177,"box":{"x":68,"y":748,"width":801,"height":11}},{"id":"e080b2a5-fe98-4c2f-9e34-04e40ea309b3","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":177,"box":{"x":69,"y":763,"width":803,"height":11}},{"id":"424a7448-abf5-4e33-90d3-45bc7cb4af9d","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":177,"box":{"x":69,"y":778,"width":785,"height":11}},{"id":"1316db8e-1e58-4405-b817-0bf0c3763a48","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":177,"box":{"x":69,"y":793,"width":676,"height":11}},{"id":"56cdacec-3a36-4dd6-9ca6-4a83ecac938d","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":177,"box":{"x":101,"y":816,"width":798,"height":11}},{"id":"d6510018-2989-480a-89ee-9e597960abf3","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":177,"box":{"x":69,"y":831,"width":651,"height":11}},{"id":"45b9cf9b-e6be-464f-9135-329296f027cc","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":177,"box":{"x":102,"y":853,"width":731,"height":12}},{"id":"8bf93f40-313c-4cc8-bbf0-6775d90fc9d4","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":177,"box":{"x":69,"y":869,"width":570,"height":11}},{"id":"026a3e26-593c-4841-8604-11b94d5aa8de","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":177,"box":{"x":102,"y":891,"width":763,"height":12}},{"id":"549717b1-3711-4fe5-97fa-e9ee22942a7b","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":177,"box":{"x":70,"y":906,"width":820,"height":12}},{"id":"a1b865fc-3a40-43d4-af05-ed62975a34bb","block_type":"box","text":"II-132","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1530d962-7154-4922-81c3-f5279180eab2","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afd2c7b9-f608-4ad7-ab9e-015a0267b1b2","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":178,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"2dfdb37b-cfe9-4358-a141-50191763188e","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":178,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"840246f6-0c2a-420e-af77-3bbe2ae434c6","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":178,"box":{"x":69,"y":75,"width":791,"height":11}},{"id":"25f3b4fd-e175-4ad0-8bed-423d6a441d91","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":178,"box":{"x":68,"y":90,"width":791,"height":11}},{"id":"6f6d90c1-a3f7-4c34-a1a4-f3cc6512b148","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":178,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"16ccae52-8ada-4f71-aa0a-fc9e0f81f3a6","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":178,"box":{"x":70,"y":120,"width":739,"height":12}},{"id":"42c8f9f7-dd7d-4adb-82ee-d897e1d325e4","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":178,"box":{"x":102,"y":143,"width":786,"height":11}},{"id":"05604011-3b05-4aaf-a607-85e00ee5833b","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":178,"box":{"x":70,"y":158,"width":820,"height":11}},{"id":"19527ae7-0976-449c-a5cd-a85d34b4b466","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":178,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"9415c92c-5680-4272-a536-24f2fb5a1f88","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":178,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"a2d07b6c-df1f-4b6b-83b4-02f5d367cfb8","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":178,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"e78954ed-642f-45df-a10f-c5cbdcd36373","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":178,"box":{"x":69,"y":219,"width":826,"height":11}},{"id":"2fed6172-0f15-44f6-b586-a00f08bb1d72","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":178,"box":{"x":69,"y":234,"width":802,"height":11}},{"id":"d52e81b1-f75c-4e79-a6fe-84dbee2f67c1","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":178,"box":{"x":69,"y":249,"width":364,"height":11}},{"id":"609e0089-6aec-407f-926a-55c77a795b1b","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":178,"box":{"x":102,"y":271,"width":774,"height":12}},{"id":"046966db-8668-4466-aaae-50153e4f7872","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":178,"box":{"x":68,"y":286,"width":787,"height":12}},{"id":"115e6d35-13a4-4ca7-b086-c18b9ad07b3c","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":178,"box":{"x":68,"y":301,"width":835,"height":12}},{"id":"75ea652a-af03-4d55-a402-807e5e8be0df","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":178,"box":{"x":68,"y":317,"width":809,"height":11}},{"id":"8e388466-c6e2-4a92-aa13-09fc48c82e1f","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":178,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"b824c621-fe84-4ecd-b753-1a6913621318","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":178,"box":{"x":69,"y":347,"width":783,"height":11}},{"id":"97a553ca-e7e1-4812-bad9-11e279866970","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":178,"box":{"x":69,"y":362,"width":710,"height":11}},{"id":"c8517840-7304-408e-8cee-40afe4a20ed2","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":178,"box":{"x":102,"y":385,"width":758,"height":11}},{"id":"ab17fc80-c373-40b0-9bef-b122070489ed","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":178,"box":{"x":69,"y":400,"width":782,"height":11}},{"id":"fbcaef73-7c2c-43c8-b07c-daea4d57b15b","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":178,"box":{"x":70,"y":415,"width":783,"height":11}},{"id":"50a1117f-98f4-489f-8dcf-57d39a452991","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":178,"box":{"x":69,"y":430,"width":797,"height":11}},{"id":"ca3dd3f3-8089-4fe3-a3d4-4e317a28fbbd","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":178,"box":{"x":70,"y":445,"width":822,"height":12}},{"id":"66a562fc-ff05-444a-8c07-e5c221e4629e","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":178,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"bc22b3d6-55ea-4529-9220-da51dec2b941","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":178,"box":{"x":70,"y":475,"width":826,"height":12}},{"id":"d2bb6e9c-7aa3-4488-86e0-72355d011091","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":178,"box":{"x":69,"y":491,"width":808,"height":11}},{"id":"99c5ecab-cf22-4d78-8c31-742a15f3e032","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":178,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"e49bcaea-20fa-4aa5-8393-5c34bbc648bb","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":178,"box":{"x":70,"y":521,"width":770,"height":11}},{"id":"a06a68d9-a176-43e5-945e-f9eb01d304d6","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":178,"box":{"x":70,"y":536,"width":816,"height":11}},{"id":"28311f69-9396-435f-9792-130225ef245e","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":178,"box":{"x":70,"y":551,"width":796,"height":11}},{"id":"801542b5-514e-4917-9bc6-abfd40ee83a1","block_type":"box","text":"investment opportunities.","page_number":178,"box":{"x":70,"y":566,"width":180,"height":11}},{"id":"0e629100-bcb2-4464-81a2-d47c6c31a68b","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":178,"box":{"x":102,"y":589,"width":801,"height":11}},{"id":"982aa318-700f-4181-9f41-8f21abb0744c","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":178,"box":{"x":70,"y":604,"width":839,"height":11}},{"id":"78117089-5b69-43e2-a268-3cdde28d6dea","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":178,"box":{"x":69,"y":619,"width":840,"height":11}},{"id":"fdfe0e55-9419-44a2-9c98-60d666441013","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":178,"box":{"x":68,"y":634,"width":837,"height":12}},{"id":"8f0cd89e-db9a-4420-ae82-3d3d284b9cb5","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":178,"box":{"x":70,"y":649,"width":774,"height":11}},{"id":"e0504c7f-7783-450d-83c3-292f073112ea","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":178,"box":{"x":69,"y":664,"width":820,"height":12}},{"id":"bd9f69d3-dcf1-461d-8088-68bb005772fe","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":178,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"c222575b-e9a7-491a-8b9f-6072435c28db","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":178,"box":{"x":69,"y":695,"width":755,"height":11}},{"id":"9db99857-cf90-4496-9e0f-19b4d8bccda5","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":178,"box":{"x":69,"y":710,"width":811,"height":11}},{"id":"80a46827-9b6b-4d6b-b381-4972a4443555","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":178,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"9f6db459-8b83-437f-9fab-f1ebbb374ee7","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":178,"box":{"x":68,"y":740,"width":812,"height":11}},{"id":"beab99d2-15a1-4bb7-9552-7b8eb8dcf3fd","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":178,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"9ef77af9-6716-4a03-8141-a815f0c216ac","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":178,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"a312cdb4-b1bb-4de2-9a34-1e7cd4aad53c","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":178,"box":{"x":70,"y":785,"width":829,"height":12}},{"id":"87ec3609-363e-468d-b705-dbf6e8d1091e","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":178,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"903126bd-7762-4d49-98e3-44e74ba2ab11","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":178,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"346db4f6-da03-4edd-973a-b7d10712874e","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":178,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"639ede75-f013-43ac-87ed-9098af248b08","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":178,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"9d3e342d-30a4-41f7-bf61-32194651a986","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":178,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"fc0cde4e-a67f-4c19-a94f-09b6c4c49d58","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":178,"box":{"x":70,"y":876,"width":814,"height":11}},{"id":"b0bc331b-cc6d-4b93-86cd-11a73ff512ff","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":178,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"0619bfe5-720f-44cb-b325-7b210c8c0a0d","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":178,"box":{"x":68,"y":906,"width":527,"height":12}},{"id":"ea691ba6-9dc9-494f-9cdd-039b9cd3cbc7","block_type":"box","text":"II-133","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"374ccd2b-f033-4b69-909c-7d1bba1438d6","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9a31c55-9e4b-4166-a8e6-3a37fa17aadd","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":179,"box":{"x":102,"y":45,"width":768,"height":11}},{"id":"e7638795-0237-4b69-875e-479014dba04b","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":179,"box":{"x":69,"y":60,"width":780,"height":11}},{"id":"8234bcf0-98db-4458-88ae-19ca88e9ad81","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":179,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"939673b7-083f-4522-a942-51791d92e96c","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":179,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"ea0b353a-66eb-4e00-bb90-d057a4a7b290","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":179,"box":{"x":69,"y":105,"width":831,"height":11}},{"id":"4e0accfe-b931-49c8-a29b-9391ce4a82ef","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":179,"box":{"x":69,"y":120,"width":776,"height":11}},{"id":"b530a987-9ee4-4e88-8064-4fde69aa1a5a","block_type":"box","text":"positions in its portfolio (","page_number":179,"box":{"x":70,"y":135,"width":177,"height":11}},{"id":"877b1e20-b295-4774-911e-9767d6aac3ca","block_type":"box","text":"i.e.","page_number":179,"box":{"x":249,"y":136,"width":20,"height":8}},{"id":"08231c4b-725c-4964-9945-7af802369523","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":179,"box":{"x":272,"y":135,"width":636,"height":12}},{"id":"5f6e8533-cabd-48d8-8e9b-8c7b9ee1fd58","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":179,"box":{"x":69,"y":150,"width":795,"height":12}},{"id":"043db27c-5035-45a8-ad86-75605619b9c8","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":179,"box":{"x":70,"y":166,"width":830,"height":11}},{"id":"7e8b15a0-fc0d-4b07-895f-4e6fc3e8f3a9","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":179,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"744b271f-6732-45b5-b757-39caf38d8418","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":179,"box":{"x":69,"y":196,"width":415,"height":11}},{"id":"7fb7e60e-ec32-4c4c-aecc-8d7d4804b03b","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":179,"box":{"x":102,"y":218,"width":781,"height":12}},{"id":"58db41e4-8e8d-42a9-9377-6437c5e4a40b","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":179,"box":{"x":69,"y":234,"width":835,"height":11}},{"id":"1eb75837-ab3e-4f29-901d-65e61930e7ee","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":179,"box":{"x":70,"y":249,"width":811,"height":11}},{"id":"650821bb-faf8-4f57-8b20-deb0336a2588","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":179,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"5d0c4649-dffd-46b4-ae00-4de7ccafcddf","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":179,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"19f9e650-d4e0-4d06-a11e-2fa7aa31a63e","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":179,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"5594ddfa-adb8-4deb-8665-22d2a7263d73","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":179,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"ee91b938-dbda-4b2b-8eb2-f0445fb656f9","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":179,"box":{"x":69,"y":324,"width":805,"height":12}},{"id":"cd3f924f-7106-4003-8531-4a9a46fa74a5","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":179,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"cd6df92a-28a6-4078-916b-3a3ea8216731","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":179,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"877b394f-1e52-413e-806f-88d05c6e07b6","block_type":"box","text":"capital asset.","page_number":179,"box":{"x":69,"y":370,"width":95,"height":11}},{"id":"63019873-010e-4df6-b7d8-1e770d01867e","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":179,"box":{"x":102,"y":392,"width":787,"height":12}},{"id":"48956cee-a339-487c-9cc9-ecd5e7355a65","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":179,"box":{"x":70,"y":407,"width":836,"height":12}},{"id":"17c7ba48-589b-4085-8bc9-07280e409cf9","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":179,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"f66d4f53-475e-436a-b40f-f016948bf4dd","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":179,"box":{"x":69,"y":438,"width":805,"height":11}},{"id":"637c5736-51e3-4bed-be96-e95b71347592","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":179,"box":{"x":68,"y":453,"width":829,"height":11}},{"id":"4e4dffc4-16f8-47ef-8098-5c82c24d8fba","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":179,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"6ce08dd6-a2d3-4cef-aba5-753cecb48075","block_type":"box","text":"Fund were to invest otherwise.","page_number":179,"box":{"x":70,"y":483,"width":216,"height":9}},{"id":"db351644-879f-45b3-b1ee-c2688bb44bc7","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":179,"box":{"x":101,"y":506,"width":721,"height":11}},{"id":"472a9d7a-4a7f-464b-a2b5-40971d64d9a3","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":179,"box":{"x":70,"y":521,"width":787,"height":11}},{"id":"253b0bcc-7304-49da-a417-a7dd97d6f1f8","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":179,"box":{"x":70,"y":536,"width":831,"height":11}},{"id":"0faf980f-7d92-4f1a-b423-b5dcf364c7e9","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":179,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"9b47ec3a-e48c-4763-8d1f-30a1a747cf4e","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":179,"box":{"x":69,"y":566,"width":825,"height":11}},{"id":"8e2b8e8a-3fe5-4924-b656-eeb0c6d5489b","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":179,"box":{"x":68,"y":581,"width":838,"height":12}},{"id":"86bf228f-27d4-443d-aaba-6fd69229527b","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":179,"box":{"x":68,"y":596,"width":830,"height":12}},{"id":"eaa7b2c0-0b83-4214-b36a-b463b06b2f95","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":179,"box":{"x":69,"y":612,"width":515,"height":11}},{"id":"fac2af27-10b1-4a72-827e-0b9dcb242328","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":179,"box":{"x":102,"y":634,"width":798,"height":12}},{"id":"d6c08f1a-5fde-4100-8507-1f3448fe62f6","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":179,"box":{"x":68,"y":649,"width":835,"height":12}},{"id":"5fb01b23-5a6e-4d72-bb9c-9a5e5bbc08fe","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":179,"box":{"x":70,"y":664,"width":827,"height":12}},{"id":"f124e85a-decc-4204-b147-0a686ca48dac","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":179,"box":{"x":68,"y":680,"width":830,"height":11}},{"id":"4f5fb536-9c9b-4c46-b7ca-1eca87bd907f","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":179,"box":{"x":69,"y":695,"width":802,"height":11}},{"id":"5b16afbb-a9d7-4434-b5d0-70044ebd710b","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":179,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"f57d649c-6ad1-47ae-97c0-57c9042e874d","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":179,"box":{"x":70,"y":725,"width":797,"height":11}},{"id":"427251e9-e4f0-4f3b-b853-feb82b80e8cb","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":179,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"7004a1dc-8830-410e-90c7-a42fab0e3aa4","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":179,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"8bef0daf-4721-4e98-a80b-803569753790","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":179,"box":{"x":68,"y":770,"width":797,"height":11}},{"id":"5a9f51be-b594-4404-8a91-733fc164a74f","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":179,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"0e349399-9d73-4f0e-a7b9-6ad531b82c0b","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":179,"box":{"x":68,"y":801,"width":804,"height":11}},{"id":"2f7522df-a8b5-46bd-990a-39933bd29611","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":179,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"fc0b56e3-1518-497e-992d-46122317b8b2","block_type":"box","text":"PFICs.","page_number":179,"box":{"x":69,"y":831,"width":42,"height":9}},{"id":"0354d420-8e17-47ef-ac75-7ce702952e01","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":179,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"a0a794d5-d8f0-4b85-9de4-261861d38cbf","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":179,"box":{"x":69,"y":869,"width":816,"height":11}},{"id":"bab7f15c-9437-4501-bb95-03c0e05e61f2","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":179,"box":{"x":69,"y":884,"width":816,"height":11}},{"id":"7bb665f8-d3a4-43e3-9967-b000ec42a8f0","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":179,"box":{"x":68,"y":899,"width":840,"height":11}},{"id":"45ea85e8-6aaa-4998-ad02-658b57fdebb0","block_type":"box","text":"II-134","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fdec2aa9-4087-43bb-a8da-29eba5747fed","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f2f120fc-2e56-4a49-8496-5803bb7af6ce","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":180,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"9ca09705-1079-4a8c-a1e7-b346c92aa455","block_type":"box","text":"difficult or impossible to obtain.","page_number":180,"box":{"x":69,"y":60,"width":225,"height":11}},{"id":"a81f7f6b-093c-445f-a3d0-caecf226a9fc","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":180,"box":{"x":102,"y":82,"width":796,"height":12}},{"id":"c979499d-430a-4d04-b499-610555c34823","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":180,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"d22f46f5-ee57-43b9-be07-06dff8048e1a","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":180,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"7d83743e-bf3b-4f05-96f4-c041499c82e7","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":180,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"fef44e9b-f168-4744-a754-21904209476c","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":180,"box":{"x":68,"y":143,"width":824,"height":11}},{"id":"10206b28-0bce-4a06-b4b8-ec6e071579db","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":180,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"d4aaaf42-2647-4345-b274-4ef28553a341","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":180,"box":{"x":69,"y":173,"width":511,"height":11}},{"id":"33d62c0c-d255-4107-b016-f67f08e5dccd","block_type":"box","text":"Municipal Funds","page_number":180,"box":{"x":102,"y":196,"width":115,"height":11}},{"id":"086f0ce8-9b53-43d7-b551-5b2236a16d9b","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":180,"box":{"x":102,"y":218,"width":798,"height":12}},{"id":"8fd42555-682f-45b7-b3f9-a2f2fec2fe49","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":180,"box":{"x":69,"y":234,"width":815,"height":11}},{"id":"b110fdd8-fc16-4cd4-acaa-5c84e629160e","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":180,"box":{"x":70,"y":249,"width":803,"height":11}},{"id":"23b37f10-2057-4862-b8ab-2b5f581fa26b","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":180,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"76a63cb6-6db3-4772-91e5-e4264e22d09a","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":180,"box":{"x":69,"y":279,"width":752,"height":11}},{"id":"62a79cf9-b07e-420a-80c9-1613f057a943","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":180,"box":{"x":70,"y":294,"width":817,"height":11}},{"id":"2dbb2608-cdc3-4b03-bf8a-525ed3bc4b43","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":180,"box":{"x":70,"y":309,"width":780,"height":11}},{"id":"1b65a553-eda1-4ae3-8641-0a8a2bd6a9d4","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":180,"box":{"x":70,"y":324,"width":815,"height":12}},{"id":"63b6acd8-c940-4e5b-8849-1eb075641953","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":180,"box":{"x":69,"y":340,"width":839,"height":11}},{"id":"52476366-200d-4e5a-b6fa-97d13e30c37b","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":180,"box":{"x":70,"y":355,"width":835,"height":11}},{"id":"2341bcbe-3025-40ce-94f6-1d3c5903b4fb","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":180,"box":{"x":68,"y":370,"width":730,"height":11}},{"id":"b2cfe971-5d63-451b-9555-5d90e4f20ee3","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":180,"box":{"x":102,"y":392,"width":763,"height":12}},{"id":"10ff540a-215a-41fc-acf1-1ff1666ba1b2","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":180,"box":{"x":70,"y":407,"width":809,"height":12}},{"id":"cd607c45-005e-4d43-9efd-1fd6ff4e0406","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":180,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"b1ad4465-4996-4e04-884c-923dc01ee57c","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":180,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"59809d7b-0d82-4569-9242-eca257ee90c7","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":180,"box":{"x":68,"y":453,"width":800,"height":11}},{"id":"7e1147ed-db10-48ff-829c-a42dcad92efb","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":180,"box":{"x":69,"y":468,"width":810,"height":11}},{"id":"f64c88c3-fa13-40fb-a24d-971939fd6f1c","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":180,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"d9dae229-e732-4055-b356-04b86e0e9b57","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":180,"box":{"x":69,"y":498,"width":835,"height":11}},{"id":"9b373a79-5dda-4ecc-a7a0-06329aa62889","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":180,"box":{"x":69,"y":513,"width":217,"height":11}},{"id":"b42afd9a-a45f-4b68-9d71-81c73378bf73","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":180,"box":{"x":102,"y":536,"width":788,"height":11}},{"id":"48ef98b1-7c46-48c5-a3d5-5accc205423b","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":180,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"4a23263b-aaa0-4eae-8ca3-ac34a740e568","block_type":"box","text":"constitute exempt-interest dividends.","page_number":180,"box":{"x":69,"y":566,"width":261,"height":11}},{"id":"19ad3cd2-9882-4fe9-9e60-1365df459a7a","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":180,"box":{"x":102,"y":589,"width":765,"height":11}},{"id":"e342d1a6-6069-4e6d-a340-b1abc95de719","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":180,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"32ca75a5-6a5a-4910-8ff5-206a0c5023c8","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":180,"box":{"x":68,"y":619,"width":813,"height":11}},{"id":"4dfac4b4-95da-496c-b9de-74fcdfbe94b8","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":180,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"6f2afbd3-8d27-4933-a5f9-cdb044dcf083","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":180,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"8866f463-b6b0-404a-9a94-913704e4b879","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":180,"box":{"x":69,"y":665,"width":388,"height":11}},{"id":"9170ecc5-10ef-4fe3-8668-d6cc581dfd18","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":180,"box":{"x":101,"y":687,"width":787,"height":11}},{"id":"376d5a93-d6ab-4633-a40c-70f47c0b5891","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":180,"box":{"x":69,"y":702,"width":817,"height":12}},{"id":"8a9388ae-9f95-4255-b8a0-2bf89a7df9e4","block_type":"box","text":"income dividends received by shareholders.","page_number":180,"box":{"x":70,"y":718,"width":309,"height":11}},{"id":"e63ed1ca-4106-4357-9bea-3ea19d22b913","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":180,"box":{"x":101,"y":740,"width":766,"height":11}},{"id":"f25069c8-182c-45a4-86f6-59d1fbee09e9","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":180,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"49479384-7cc8-4a94-8ff4-fe6d7748ef7c","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":180,"box":{"x":70,"y":771,"width":815,"height":11}},{"id":"e961f62c-ade0-4142-90ca-97ee9f27e148","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":180,"box":{"x":70,"y":785,"width":815,"height":12}},{"id":"9601870d-3846-4ac0-b40a-04b07b5f0785","block_type":"box","text":"the accrued market discount.","page_number":180,"box":{"x":68,"y":801,"width":208,"height":9}},{"id":"678f0bb2-84ee-464d-aac8-eb8297717658","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":180,"box":{"x":101,"y":823,"width":801,"height":11}},{"id":"73898d51-b66c-49f3-9075-e02fd0a0a1ac","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":180,"box":{"x":68,"y":838,"width":818,"height":12}},{"id":"1fcbcc7a-3640-492b-8a4c-7c240bb40f1b","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":180,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"52cac5b3-c425-4cf4-8b51-a71d44d540b3","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":180,"box":{"x":69,"y":869,"width":351,"height":11}},{"id":"78f5057c-2de6-438e-934c-9a3b01ecec08","block_type":"box","text":"e.g.","page_number":180,"box":{"x":422,"y":870,"width":24,"height":10}},{"id":"cd994f89-b3c2-486b-9606-62d974057104","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":180,"box":{"x":449,"y":869,"width":441,"height":11}},{"id":"5bb57c33-b0d2-4e1b-bdc5-42df3feb874a","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":180,"box":{"x":70,"y":884,"width":827,"height":11}},{"id":"a21480be-a8cd-4c20-8fa4-dc5aa9f1affe","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":180,"box":{"x":69,"y":899,"width":786,"height":11}},{"id":"919d5cb7-f6f5-4f0c-9a44-80c630fa945a","block_type":"box","text":"II-135","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9b9c1408-74e4-43e3-a41c-52ad6c68a91b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af70515b-025a-48ee-8817-81a18bf98ee4","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":181,"box":{"x":70,"y":45,"width":782,"height":11}},{"id":"45c9570f-87b7-4ebf-b0fe-44dd5a49bcc0","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":181,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"3858a887-84c4-4ab7-b6a4-87eda4ea3ae8","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":181,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"12db161d-567e-428c-89a6-b3c897fecf59","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":181,"box":{"x":68,"y":98,"width":812,"height":11}},{"id":"4bc0117a-6823-4e95-beb7-2271c0266e04","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":181,"box":{"x":69,"y":113,"width":794,"height":11}},{"id":"2494f60b-964f-4ed0-bfb4-e5abe7548719","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":181,"box":{"x":70,"y":128,"width":776,"height":11}},{"id":"39b1a073-6ff8-4d20-92b5-b75f5adac356","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":181,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"0cb2f939-8e88-4f42-80a1-c0b12a00ffa4","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":181,"box":{"x":69,"y":158,"width":436,"height":11}},{"id":"a4a30b28-9223-4b0d-af6c-82f5149a090f","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":181,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"ce30f027-5346-42d9-8477-7c727eb498ac","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":181,"box":{"x":69,"y":196,"width":828,"height":11}},{"id":"78313133-c126-4c84-9897-ba2d20252f67","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":181,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"c7d29938-3a68-40c6-8e2a-576e85bec11a","block_type":"box","text":"within each applicable state.","page_number":181,"box":{"x":68,"y":226,"width":203,"height":11}},{"id":"aa412c2a-0c00-478b-9861-e85fc2b602de","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":181,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"ff46deea-15e5-411f-be1d-3503f46cf47b","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":181,"box":{"x":68,"y":264,"width":837,"height":11}},{"id":"1ea687dd-8e88-45b3-8e93-6a672442a33b","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":181,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"91775fdd-d1f4-4b40-9746-648c3d223333","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":181,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"2e52015c-bbff-4908-ae17-642505e5f886","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":181,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"122336d4-6f48-4f46-8a03-41537dbc5ef8","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":181,"box":{"x":70,"y":324,"width":783,"height":11}},{"id":"4453f3b5-2f08-41f9-a5b9-6b6b9ec01257","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":181,"box":{"x":68,"y":339,"width":822,"height":12}},{"id":"8e522e7d-a6cb-4ba8-a9e1-4a720bc8d265","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":181,"box":{"x":68,"y":355,"width":710,"height":11}},{"id":"3ceb3afc-5f1f-4800-8f9a-2c1c815e915b","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":181,"box":{"x":102,"y":377,"width":796,"height":12}},{"id":"4119619a-3161-443b-a521-daec891678d8","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":181,"box":{"x":68,"y":392,"width":828,"height":12}},{"id":"1a485a60-093b-43dc-bddd-d019917b218a","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":181,"box":{"x":68,"y":408,"width":841,"height":11}},{"id":"44f523fd-2aa4-4b4f-9287-36c3a1e2b711","block_type":"box","text":"exempt from state income tax.","page_number":181,"box":{"x":69,"y":423,"width":216,"height":11}},{"id":"db1ac251-4775-4222-82ef-f9aa8884e086","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":181,"box":{"x":102,"y":445,"width":771,"height":12}},{"id":"21bdd138-5f76-4823-bcfa-384f3c5048d7","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":181,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"fc8e5493-6907-4e31-9e20-b09c94079f7f","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":181,"box":{"x":68,"y":475,"width":309,"height":9}},{"id":"8f8ac43c-9cdb-44bc-9ea4-341f7c20090e","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":181,"box":{"x":101,"y":498,"width":749,"height":11}},{"id":"803ee59a-1e9b-42bd-afcc-5cbf528376bd","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":181,"box":{"x":69,"y":513,"width":803,"height":12}},{"id":"6a5adeb5-463d-4b7b-9e39-a69a2e82e1d8","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":181,"box":{"x":69,"y":528,"width":801,"height":12}},{"id":"e4323668-17ff-4112-9477-de692aa320e6","block_type":"box","text":"decisions may have a retroactive effect.","page_number":181,"box":{"x":69,"y":543,"width":283,"height":12}},{"id":"5883258a-0581-4df4-ba18-ece848bdc66a","block_type":"box","text":"PERFORMANCE DATA","page_number":181,"box":{"x":403,"y":573,"width":173,"height":10}},{"id":"23971ab8-59bd-4121-a55f-40bd351b2bec","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":181,"box":{"x":102,"y":596,"width":738,"height":11}},{"id":"62e3cc25-1fd1-4d3a-81ad-2b4fbbe4f086","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":181,"box":{"x":69,"y":611,"width":779,"height":11}},{"id":"b8bfd7d4-d05b-4c7a-a81c-5d229e83df81","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":181,"box":{"x":69,"y":626,"width":833,"height":11}},{"id":"1c306bbb-e6c2-47ab-a396-b3af01d0c2c2","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":181,"box":{"x":70,"y":641,"width":792,"height":11}},{"id":"fbcebb3a-cf59-48b8-8f21-5d8f807a418a","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":181,"box":{"x":69,"y":656,"width":473,"height":11}},{"id":"d5195f8e-79e0-49d3-8a93-e95cf6ae5fbc","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":181,"box":{"x":102,"y":679,"width":761,"height":11}},{"id":"faa22eb3-f43f-4a2c-aa33-07bbee7a480b","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":181,"box":{"x":69,"y":694,"width":836,"height":11}},{"id":"6b21b9cf-be8e-45a7-b503-6fe326ea9dd3","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":181,"box":{"x":68,"y":709,"width":798,"height":11}},{"id":"bb5ce372-ce8a-4c16-9c5d-d61260a85edd","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":181,"box":{"x":69,"y":724,"width":765,"height":12}},{"id":"224a8b1e-dfa2-47a0-bff2-045a45063d43","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":181,"box":{"x":69,"y":740,"width":808,"height":11}},{"id":"3a2829e2-7c09-4738-bf08-84ce20d02772","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":181,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"508819e7-4b5c-4754-be75-6857a4d658e8","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":181,"box":{"x":69,"y":770,"width":839,"height":11}},{"id":"779d4801-3cd9-4034-9ef5-af8496b1b87f","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":181,"box":{"x":69,"y":785,"width":546,"height":11}},{"id":"65ef7eca-3033-46c1-94eb-00e3cb4e22b8","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":181,"box":{"x":102,"y":807,"width":781,"height":12}},{"id":"0dd09148-7056-4b2d-8cd5-cac70e83e921","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":181,"box":{"x":68,"y":823,"width":819,"height":11}},{"id":"672676e4-dbcd-46b6-a3f9-08bb5351edb8","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":181,"box":{"x":68,"y":838,"width":810,"height":11}},{"id":"c4dcbc36-ca74-4d4e-914f-5c1b50ffafca","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":181,"box":{"x":70,"y":853,"width":823,"height":11}},{"id":"59629ebd-4610-48ba-9c11-dc8dc83871e0","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":181,"box":{"x":69,"y":868,"width":780,"height":11}},{"id":"b352beb3-0222-4f7c-b9b5-38fbe179d6c6","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":181,"box":{"x":70,"y":883,"width":825,"height":11}},{"id":"89f1b36f-716e-4acd-ae06-6d4e4d4faae7","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":181,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"be4a7dca-3172-47f4-9234-d2cba889d181","block_type":"box","text":"II-136","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c0d7ecc5-ecfb-4bd0-a793-131319606338","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7e15aff8-9903-42c0-8640-ecda834181cd","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":182,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"9757355c-b9e5-4991-8db8-514461f3a4e4","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":182,"box":{"x":70,"y":60,"width":833,"height":11}},{"id":"584d4c67-23bd-4409-b4d9-3a34b1983693","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":182,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"5f8b1f81-f76f-4e39-b66f-8db43912b9a0","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":182,"box":{"x":68,"y":90,"width":824,"height":11}},{"id":"df93ffd6-74ed-44de-b171-9fde01a05ab9","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":182,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"4ee35e5d-6184-48c8-8b8a-0aba72a6ddd0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":182,"box":{"x":69,"y":120,"width":814,"height":12}},{"id":"24e723a4-e5ce-46de-917f-8ebfd9823936","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":182,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"332d60f8-7a32-4360-821a-fb8f51e71d14","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":182,"box":{"x":69,"y":150,"width":774,"height":11}},{"id":"5baf2199-58d3-461d-94a7-7137d64f0b63","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":182,"box":{"x":102,"y":173,"width":752,"height":11}},{"id":"e5bb01b2-1658-420c-ba32-bd799df7cfce","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":182,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"719e7bbf-5063-4561-8567-3d924af8fef1","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":182,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"b47be5ec-6321-43c5-922b-3bf02b3277e9","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":182,"box":{"x":69,"y":218,"width":756,"height":12}},{"id":"6702eed0-d938-4117-9661-bda3653044ec","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":182,"box":{"x":69,"y":234,"width":772,"height":11}},{"id":"b30a61c4-8a44-46c2-bd89-322113715618","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":182,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"4fec710f-8bfb-429d-a90a-3de0eb4bb28c","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":182,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"4d6fceb2-1102-4dbf-a53e-b80e62e27c2e","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":182,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"e10f6420-4275-4d5e-a7da-e0b623dd5400","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":182,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"3f07928e-3bc1-4844-93cb-8cd5e1e47554","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":182,"box":{"x":69,"y":309,"width":768,"height":11}},{"id":"76489dff-2ee4-4ffb-9ed9-fee068b3cbc7","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":182,"box":{"x":69,"y":324,"width":810,"height":12}},{"id":"eea97c8d-09f5-412e-aa61-d31730d3380a","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":182,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"540fb0cd-d065-4b24-9740-787105f97ad7","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":182,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"cef67944-f4a2-4615-9dd8-a82725f17e32","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":182,"box":{"x":68,"y":370,"width":823,"height":11}},{"id":"c43b1813-02de-4b3f-a65a-e9ff9d353d01","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":182,"box":{"x":69,"y":385,"width":743,"height":11}},{"id":"f8869576-a51a-42ef-a232-7d759e3205b8","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":182,"box":{"x":69,"y":400,"width":814,"height":11}},{"id":"ec613fad-8ec4-46ec-9a44-682dd8b2b125","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":182,"box":{"x":68,"y":415,"width":422,"height":11}},{"id":"a3618af3-b487-4f22-8490-7ccac648a35d","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":182,"box":{"x":101,"y":438,"width":720,"height":11}},{"id":"5c4ab2e9-94a4-49cf-b574-f57da2363461","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":182,"box":{"x":70,"y":452,"width":813,"height":12}},{"id":"032bec4e-dea3-4cb0-a9d6-0eb44b394c1f","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":182,"box":{"x":69,"y":468,"width":781,"height":11}},{"id":"ce0fbd58-a3e5-42b7-a4e7-901da268aa93","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":182,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"66ccbb38-44a5-477c-b0c6-e68829f3bc48","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":182,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"0f692937-0a7c-472f-80ca-bfa29db562e0","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":182,"box":{"x":68,"y":513,"width":815,"height":11}},{"id":"9baa2df9-402c-4016-b929-ea59df978955","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":182,"box":{"x":70,"y":528,"width":801,"height":12}},{"id":"b184ac02-7f0f-4d53-980d-108ee8c26d5a","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":182,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"4e32de65-cdad-44e5-830f-94ef73d23d52","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":182,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"7cc05e2f-fedd-4bba-a98f-27d4fe5af7b1","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":182,"box":{"x":69,"y":574,"width":686,"height":11}},{"id":"839846a4-4b39-4016-93d3-50055da54906","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":182,"box":{"x":101,"y":596,"width":796,"height":12}},{"id":"0a11c25f-9386-4d5d-bc76-b4c627d5c678","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":182,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"7a0d5014-324f-4f7d-b905-c9c417c47e6d","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":182,"box":{"x":68,"y":627,"width":817,"height":11}},{"id":"876785b3-ae8f-4c39-9424-cc00bd6ec6f4","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":182,"box":{"x":68,"y":642,"width":837,"height":11}},{"id":"566c602f-792d-45ab-a440-4477598bcedb","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":182,"box":{"x":69,"y":657,"width":759,"height":11}},{"id":"7600970c-70de-4510-8cde-0c799d17ac7a","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":182,"box":{"x":101,"y":680,"width":779,"height":11}},{"id":"fd16605e-3c9d-4f3c-905b-7a6eaa9db8df","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":182,"box":{"x":70,"y":695,"width":819,"height":11}},{"id":"139cec85-de58-4f2f-88b9-a128ff2f4676","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":182,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"3b92048b-613d-4a08-a3f9-7a1c78278b35","block_type":"box","text":"less than their original cost.","page_number":182,"box":{"x":70,"y":725,"width":196,"height":11}},{"id":"513bc8cd-b415-4f73-b9ee-bdbd107945e6","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":182,"box":{"x":102,"y":748,"width":782,"height":11}},{"id":"65b9d0c4-b10a-4163-a891-ee2c6d1942d9","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":182,"box":{"x":68,"y":763,"width":836,"height":11}},{"id":"da4e8912-dcd2-475a-92c4-2b0e247b02f3","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":182,"box":{"x":69,"y":778,"width":807,"height":11}},{"id":"e2de2f88-6572-4568-8aee-d78102ddfe78","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":182,"box":{"x":68,"y":793,"width":820,"height":11}},{"id":"88990edb-f070-4c89-a9aa-10cda8f5417b","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":182,"box":{"x":68,"y":808,"width":824,"height":11}},{"id":"d0d4f32d-c5c4-447e-ab6f-17296394452a","block_type":"box","text":"lower amount of expenses is deducted.","page_number":182,"box":{"x":70,"y":823,"width":278,"height":11}},{"id":"a2f18f1f-5b85-4b60-a75e-28c6878131d9","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":182,"box":{"x":102,"y":846,"width":741,"height":11}},{"id":"94d76d0b-43e9-4858-89b6-1e466ecaac94","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":182,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"80c7ca5f-09ca-4fe3-97e4-21eb806428b0","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":182,"box":{"x":70,"y":876,"width":646,"height":11}},{"id":"1056655d-956d-4521-b31c-e1247f3977be","block_type":"box","text":"Money Magazine, U.S.","page_number":182,"box":{"x":724,"y":876,"width":156,"height":11}},{"id":"d26df718-e89e-4707-bb0c-6628cf61fbab","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":182,"box":{"x":70,"y":891,"width":533,"height":12}},{"id":"8bc10563-45ca-4744-ad9a-512ccc4acca4","block_type":"box","text":"or other industry publications. When","page_number":182,"box":{"x":608,"y":891,"width":257,"height":11}},{"id":"0ab89e3f-9b97-4f17-828d-f188b0c70fb0","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":182,"box":{"x":69,"y":906,"width":797,"height":12}},{"id":"972b9f39-084e-4864-a057-5694aee18ae1","block_type":"box","text":"II-137","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7b55009d-2edd-492a-a248-0840e17bb0c4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b390ba39-ebd0-4604-b485-947c1bb94ef7","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":183,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"241aad3f-b271-46b8-87e3-bda4c17ad9a2","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":183,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"a851b4be-65a2-49fe-bf81-6952266ee116","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":183,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"4c98c8a1-925f-4e8e-9bd6-8e3d85bfdf69","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":183,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"c4c6fb30-acc1-495c-bddd-68bf87062c38","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":183,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"5b4a5b75-64ec-4b89-9671-25260d665541","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":183,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"f8399f6e-2bf4-47e3-8178-1c9ab25b5030","block_type":"box","text":"developed by Fund management.","page_number":183,"box":{"x":69,"y":136,"width":233,"height":11}},{"id":"126a4780-be54-405b-b532-ef61e1693969","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":183,"box":{"x":101,"y":158,"width":780,"height":11}},{"id":"d37ca475-4bad-4492-9cb9-48c5fcd4e292","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":183,"box":{"x":70,"y":173,"width":810,"height":11}},{"id":"305f355e-3689-48c0-bffb-416f90dd6bd9","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":183,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"81379193-fccd-42bd-bf36-52ff41878d41","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":183,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"6abadda4-9c03-48d4-b913-d1a8116e0cf3","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":183,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"cf917145-1408-4826-8fd9-aae9fea62839","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":183,"box":{"x":70,"y":234,"width":835,"height":11}},{"id":"9a8358aa-c0fb-4edb-9add-f18dfba0ff76","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":183,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"619c575e-8a3d-4e62-be28-b7365dd3f41e","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":183,"box":{"x":68,"y":264,"width":461,"height":11}},{"id":"18902402-e1b8-49ff-98d8-9f7499352e71","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":183,"box":{"x":308,"y":293,"width":362,"height":10}},{"id":"4d549365-8aae-4f6c-bc6d-2cc09b912b08","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":183,"box":{"x":101,"y":316,"width":802,"height":11}},{"id":"e312558e-730e-45ef-bd2f-ef57461952c1","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":183,"box":{"x":70,"y":331,"width":809,"height":12}},{"id":"4c65466e-274e-4017-8f18-307dd8f36d84","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":183,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"636c089b-ded4-4b50-9ad7-2a9de93cda14","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":183,"box":{"x":70,"y":361,"width":755,"height":12}},{"id":"3a9e1afa-1c7d-4f2e-8790-635df9632075","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":183,"box":{"x":101,"y":384,"width":785,"height":11}},{"id":"84cfd079-275f-4df3-88c2-4c7b343b5c68","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":183,"box":{"x":68,"y":399,"width":822,"height":12}},{"id":"003cde7f-52bb-4e35-b870-c9c3abf0371d","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":183,"box":{"x":70,"y":414,"width":824,"height":12}},{"id":"f34f77db-7d24-47c0-bd06-1c6418cf6fc1","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":183,"box":{"x":68,"y":430,"width":812,"height":11}},{"id":"18989c35-fe29-462d-9097-69465a2ef298","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":183,"box":{"x":69,"y":445,"width":392,"height":11}},{"id":"42c2f3b3-066f-46eb-b822-b33f62b0ca34","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":183,"box":{"x":101,"y":468,"width":749,"height":11}},{"id":"0e31c4b1-19bd-4077-9ba1-b3f0d2fa435a","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":183,"box":{"x":70,"y":482,"width":759,"height":12}},{"id":"51c50124-5e07-48e3-8308-95fe9b649b53","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":183,"box":{"x":70,"y":498,"width":830,"height":11}},{"id":"e4922359-7fcd-47b0-8c3a-95a0fe94b833","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":183,"box":{"x":69,"y":513,"width":838,"height":11}},{"id":"a22f5a5f-254b-420b-a7dd-7aaea7777023","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":183,"box":{"x":68,"y":528,"width":822,"height":11}},{"id":"ee154f59-d078-49ff-b31d-a3bd10fd3ba0","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":183,"box":{"x":69,"y":543,"width":392,"height":11}},{"id":"fa5d6932-82a8-47b9-97ee-06aecc1d6cb3","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":183,"box":{"x":102,"y":566,"width":767,"height":11}},{"id":"80e2bb0b-a7f1-4b3a-a293-89c6bf3fd8df","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":183,"box":{"x":68,"y":581,"width":827,"height":11}},{"id":"0d002a8c-9976-42b5-ada1-79faccf3b118","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":183,"box":{"x":69,"y":596,"width":819,"height":11}},{"id":"d2c48176-2a71-48a2-997f-bdab72575e87","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":183,"box":{"x":69,"y":611,"width":684,"height":11}},{"id":"0c5eebd5-92b2-4dd3-8fe4-42508297eee6","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":183,"box":{"x":102,"y":634,"width":766,"height":11}},{"id":"a7ef0800-9c9d-411d-b330-6181955962df","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":183,"box":{"x":69,"y":649,"width":784,"height":11}},{"id":"46e0e8ca-e132-4f2a-86b4-284c4eebaaf1","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":183,"box":{"x":69,"y":664,"width":805,"height":11}},{"id":"aac9a3b4-e5e8-414b-a2d5-009c5ac94dbf","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":183,"box":{"x":68,"y":679,"width":790,"height":11}},{"id":"a3c6eb67-ff56-4757-8d66-d26eb629fafe","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":183,"box":{"x":70,"y":694,"width":810,"height":11}},{"id":"236af1f1-f880-473e-a694-1a5efd5c34a7","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":183,"box":{"x":69,"y":709,"width":788,"height":11}},{"id":"9cc2ad16-53b9-4d63-9d12-bad8e720b7ac","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":183,"box":{"x":69,"y":724,"width":327,"height":12}},{"id":"58bb2a91-fa5d-4672-ae34-2c9a5d09b3e0","block_type":"box","text":"GENERAL INFORMATION","page_number":183,"box":{"x":391,"y":754,"width":195,"height":10}},{"id":"78660116-d59f-4886-9777-26519608a8f3","block_type":"box","text":"Description of Shares","page_number":183,"box":{"x":69,"y":784,"width":156,"height":11}},{"id":"bf7c6687-87f5-4e59-9b5e-7aa4286e9d19","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":183,"box":{"x":102,"y":807,"width":800,"height":9}},{"id":"e5c9798b-84d0-4900-80a9-3be4933ad6b8","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":183,"box":{"x":69,"y":822,"width":811,"height":11}},{"id":"51049e4e-5cbc-4704-8622-de390c81b003","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":183,"box":{"x":69,"y":837,"width":825,"height":11}},{"id":"5213308d-3987-47a9-800a-1eefda9d4593","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":183,"box":{"x":69,"y":852,"width":838,"height":11}},{"id":"f3d8d019-3218-48db-8d44-c6d0330c7c63","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":183,"box":{"x":69,"y":867,"width":835,"height":12}},{"id":"6b123ed8-4987-4e20-a5cb-1e5924ad2e3a","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":183,"box":{"x":69,"y":882,"width":781,"height":12}},{"id":"151352f1-47d4-4f40-851f-49f4e9803388","block_type":"box","text":"II-138","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cfc89e1c-e09e-4bf2-910f-bd1f18477ffb","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4a5997c-cd27-49c7-bca5-4454a3f43c03","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":184,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"c351ff53-c66b-4f41-bb3c-0f4013e3d5a3","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":184,"box":{"x":69,"y":60,"width":760,"height":11}},{"id":"94b414ff-3f9d-4fa2-950a-d8b05dff2634","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":184,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"5c6877f2-a280-470c-9c46-d6adf0029f8a","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":184,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"76ffae84-d6db-47f6-9954-2e167e088191","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":184,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"7833229e-33aa-4280-984f-c38c91f0e3c4","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":184,"box":{"x":69,"y":120,"width":797,"height":11}},{"id":"564f3f78-7653-4f75-801a-a3732c481e9e","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":184,"box":{"x":69,"y":135,"width":658,"height":12}},{"id":"a41d0fcf-9165-4cd4-8c4c-b27a245bf0e7","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":184,"box":{"x":102,"y":158,"width":741,"height":11}},{"id":"779cafa2-91c4-4863-991e-8f9e167e1d19","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":184,"box":{"x":69,"y":173,"width":790,"height":11}},{"id":"2786a28b-6d05-42ff-a68b-e8d8e8d236d0","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":184,"box":{"x":69,"y":188,"width":546,"height":12}},{"id":"6749efc9-c611-46f0-ac98-95cc9e146d85","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":184,"box":{"x":102,"y":211,"width":712,"height":11}},{"id":"88ee18b1-ebf4-4f8a-96e6-917f4a7b23fc","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":184,"box":{"x":69,"y":226,"width":765,"height":11}},{"id":"6686aa47-f464-40dd-8f00-7e8d8a5c0602","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":184,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"01d0c2dc-2364-4d27-868e-18460d89114d","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":184,"box":{"x":68,"y":256,"width":729,"height":11}},{"id":"852212b0-1ee4-4a43-82ad-44da4dd1781e","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":184,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"ed80d8e7-8c73-45c1-a5f3-08398985b0a0","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":184,"box":{"x":68,"y":286,"width":761,"height":12}},{"id":"49b4bfa3-1586-483a-8e68-ba1f0fed43f7","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":184,"box":{"x":69,"y":302,"width":824,"height":11}},{"id":"57e52847-90dc-4bd1-8b1c-d6002396e2e0","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":184,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"62e63bc1-51a0-4afd-b7a6-394713f76f6c","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":184,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"019c4412-e8d3-45d6-8c5e-36c364a9c143","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":184,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"f378e882-140c-46ae-8c0e-7e03e7841d56","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":184,"box":{"x":70,"y":362,"width":699,"height":11}},{"id":"b88b6c41-69da-49c6-9479-27c8abcb3fd9","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":184,"box":{"x":102,"y":385,"width":413,"height":11}},{"id":"4f1a5090-beeb-475b-a47c-99f6d127cbd0","block_type":"box","text":"Additional Information","page_number":184,"box":{"x":68,"y":415,"width":161,"height":9}},{"id":"ff689800-0e5a-44c3-a739-e4e0f0e134bd","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":184,"box":{"x":102,"y":438,"width":789,"height":11}},{"id":"0fc93513-e0b1-4cac-95f7-c589a53849ee","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":184,"box":{"x":69,"y":453,"width":799,"height":11}},{"id":"380fadcb-9ee7-4510-931b-f66866d8960a","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":184,"box":{"x":70,"y":468,"width":837,"height":11}},{"id":"8a755c78-a081-48b9-a51e-7a469c96e508","block_type":"box","text":"such name to any other company.","page_number":184,"box":{"x":69,"y":483,"width":238,"height":11}},{"id":"f6884348-fc5a-4ad8-9049-734021e08526","block_type":"box","text":"II-139","page_number":184,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"726c054c-16af-4bd3-9629-f3f44fca5a3e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"24afe891-2567-4ad1-91ed-4f333727e89a","block_type":"box","text":"APPENDIX A","page_number":185,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"880b2222-724d-4de4-a2e9-6f8b27399d3b","block_type":"box","text":"Description of Bond Ratings","page_number":185,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"c5fdda4d-1e75-4438-97ca-94cdf8be3e12","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":185,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"dcfcd55c-c0e0-4f90-834b-bc3513a1b0aa","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":185,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"34aec23f-42d2-4ec6-b707-ff7114f99a20","block_type":"box","text":"time to time revise such ratings, they undertake no obligation to do so, and the ratings given to securities at","page_number":185,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"c0ed668c-acf9-4ad9-a0d4-5cc900d8a72a","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a particular subsequent","page_number":185,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"6578810e-9dc3-4506-b51c-2031d14567c8","block_type":"box","text":"date.","page_number":185,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"028ad2dc-4e4b-40bb-903c-3bb40fbed24c","block_type":"box","text":"NRSROs may rate specific investments (","page_number":185,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"23f37e02-4b36-4d76-b936-340ea76fa607","block_type":"box","text":"e.g.","page_number":185,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"3da35f4b-b7b5-402e-bc99-d3d070ad4625","block_type":"box","text":", bonds), issuers (","page_number":185,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"68417726-d906-4012-940a-b89dea4d0780","block_type":"box","text":"e.g.","page_number":185,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"8a67b206-1076-44ef-a7ff-630cff7d2002","block_type":"box","text":", corporations, governments and financial","page_number":185,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"a7817613-8a31-49fd-a1cd-7ddee5f2199c","block_type":"box","text":"institutions) and/or programs (","page_number":185,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"2560dfac-afe0-4418-b85f-8b51f4ac2022","block_type":"box","text":"e.g.","page_number":185,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"ac8d4e01-574e-493e-b765-e2e97552585c","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":185,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"49cbad65-7fa0-41e1-94f6-0a12167d6a58","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":185,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"388fc658-dce2-41da-bd5a-c961623abeb1","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":185,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"3ade8ad4-5ff8-4052-9903-d4ed5d6cb5d0","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where a NRSRO has not rated the","page_number":185,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"8a85e882-cd3c-4e18-a07b-917f45a1f5ec","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":185,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"15e11ec8-849b-4af8-a8c5-b1a9e5280946","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":185,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"564b591a-fa1b-4b70-a9c1-f28064608ed3","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":185,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"03b6ded3-65eb-455d-be0c-5cfed676a6df","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":185,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"7b290e5b-c2ff-4601-9566-93e791d97f2a","block_type":"box","text":"security (","page_number":185,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"e1aa53f6-c439-4b89-a29d-558398e73202","block_type":"box","text":"e.g.","page_number":185,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"50d1024a-c077-4a3a-832c-c6280ed45923","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":185,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"48d87b26-4c97-4e60-90d1-f469db47f6b3","block_type":"box","text":"highest of the multiple ratings.","page_number":185,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"c777382a-eb65-4321-b11d-4a9061a7f754","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering.","page_number":185,"box":{"x":102,"y":348,"width":751,"height":12}},{"id":"1f57fa27-11d7-41d0-a4a1-2d4961d1c1b5","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":185,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"771ca385-8d4d-4fc7-a515-2f93594d49e4","block_type":"box","text":"determined by the underwriter and/or issuer) or a NRSRO rating for the issuer of the security. 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The credit ratings","page_number":185,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"12aa8949-9c1f-4175-8989-b001f4433190","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":185,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"9b55fa08-ad8e-4988-94be-d9c046b17951","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":185,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"056697f4-67e5-4a9c-b11e-c0380bbd46f7","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":185,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"72ca8528-2813-4105-a798-ed88e728a535","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":185,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"877f5e07-b8e8-4dc0-99f2-13cbb1a77960","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":185,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"96044392-af67-450b-9f02-01141614f67d","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":185,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"f9908d78-1680-4434-8df5-b06118864bee","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":185,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"aefd75fb-5deb-4b80-882c-024f505597ae","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":185,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"dc982fb0-d121-4242-b831-53ab84d05b76","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":185,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"4425b2a5-cfd7-4063-81a2-834d20ed772f","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":185,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"da13309a-bb2a-4a1c-ae21-79e70fb0a44d","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":185,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"932ffc16-c153-4a02-8b5e-fd56a2c4c35f","block_type":"box","text":"Fitch.","page_number":185,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"25e3fa51-1af8-4cc8-a338-19d82638bef9","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":185,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"8a4d2e9d-6b4b-4f74-8bb2-ab934328b76e","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":185,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"9861b844-6a11-4b6e-bb47-e2b40ea3a340","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking opinions of the","page_number":185,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"1e676e87-5564-476b-91ff-0a5cf6edd98d","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":185,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"b40289cd-7273-4480-9b02-3cb91bda14c3","block_type":"box","text":"finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the risk that an","page_number":185,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"f3f5f78e-c488-4acf-ab0e-8313bd96580d","block_type":"box","text":"entity may not meet its contractual financial obligations as they come due and any estimated financial loss in the","page_number":185,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"ff029346-81ac-4815-a388-9eddff2fb0e1","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":185,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"23a5d57e-837b-487c-a9e5-e84a9bd11eda","block_type":"box","text":"for, without regard to enforceability, the payment of an ascertainable amount, which may vary based upon standard","page_number":185,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"411d60c6-9dc8-4ca4-aada-c28e609fae5a","block_type":"box","text":"sources of variation (","page_number":185,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"f7da2868-ee71-459a-b83f-0fea51984d0c","block_type":"box","text":"e.g.","page_number":185,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"2d56b7a8-4611-458a-8c89-4a47921a4c4b","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses the issuer’s","page_number":185,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"25593908-754c-44a6-ba53-9f45aaaddd61","block_type":"box","text":"ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do not address","page_number":185,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"35e0ed61-24da-49ec-a232-8114895adb32","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":185,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"06805ef1-4db6-4681-bafc-df883f6e0e76","block_type":"box","text":"e.g.","page_number":185,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"544ddac7-a7b8-4e9a-9eda-217d4b42c6e3","block_type":"box","text":", equity indexed), absent an express","page_number":185,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"1f79b240-911a-4ce9-83eb-4a5825b1adb7","block_type":"box","text":"A-1","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"b3db78b0-75fc-4b68-8c09-c0514c6b1733","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"014be171-dd37-4f4f-b287-9dac76775e3d","block_type":"box","text":"statement to the contrary in a press release accompanying an initial rating. Long-term ratings are assigned to issuers","page_number":186,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"7153c478-11e8-47ed-8882-dff387f9c113","block_type":"box","text":"or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or","page_number":186,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"6ad3f3e5-dd61-4774-9cf4-33392da361cc","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":186,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"928a1b1d-e0d0-4351-b206-b3062c4ea7e0","block_type":"box","text":"impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen months or less and","page_number":186,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"50191913-fb64-452a-855c-8ee1b378aa56","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":186,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"09584107-04ca-40a4-88f8-f248e2dd1ef6","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level and","page_number":186,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"07e3dd99-3471-4d6f-9296-94bf4d5744cb","block_type":"box","text":"instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly available","page_number":186,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"7d8b9e6b-0ff6-4eaa-acfa-1969c300388b","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":186,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"a560c578-6ce2-4b12-844f-dd08b23cf553","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":186,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"ccb89234-c923-4e37-bd2c-7ad53f4783ff","block_type":"box","text":"i.e.","page_number":186,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"9dbefd62-bb70-4f1b-b200-348aa1fe2691","block_type":"box","text":", ratings on nonfinancial","page_number":186,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"17138db5-8fdc-4c4e-8cbf-ba3ff4c56d69","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":186,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"e8cd06f8-176a-4040-8930-f1ac8598c491","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":186,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"4cf1121e-ef99-4024-8eb1-77d90cf96282","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":186,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"46e5b809-2c5c-4d69-addc-b9aa06dd954f","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":186,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"b8cf184e-3799-47ec-979f-a8d7b7f8c7df","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":186,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"6c8412dc-fb5e-4099-aea8-3b390f696ca0","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":186,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"fc581fad-defe-48af-bd32-8f1f2444e48a","block_type":"box","text":"of time.","page_number":186,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"27ac9db6-55c9-4dc8-b437-e9e5789a9b3a","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":186,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"b650294c-32c4-443a-8856-06e04a5d1859","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":186,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"4b8a9c54-7aa4-4603-b943-b3fa029c2be2","block_type":"box","text":"risk.","page_number":186,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"d3458b8b-0364-444b-a35b-17143080ad6f","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":186,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"e054558e-bf73-48cb-a066-37831a75ccba","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":186,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"d83331ab-3b55-4b53-a154-0b2e1a1ce77d","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":186,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"3246f4fc-2165-42b2-b9b5-7aa359e4ae8c","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":186,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"1e4a6083-1301-4105-b775-b1f278ba2848","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":186,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"492c7a48-dc3d-4979-8413-38a1321d7a32","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":186,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"837b5bd2-2ecd-490d-9ba8-22a1246dee91","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":186,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"08479f9d-4494-48e3-8288-fc4e6f93e161","block_type":"box","text":"credit risk.","page_number":186,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"6d820c95-665e-41f1-ad00-6b19ec1393a4","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":186,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"2ac19f82-3f71-4af0-aa2a-3f470a468191","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":186,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"145cfef5-4b9f-4c42-808c-cd3ebb68e478","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":186,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"1daf3142-474e-4258-9267-b3f811a72e66","block_type":"box","text":"of principal or interest.","page_number":186,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"2aa84d33-11fb-4816-be49-7a01554c6de9","block_type":"box","text":"Note:","page_number":186,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"79987de7-df16-4215-88e3-639842297651","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":186,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"7200ed4e-0bee-450e-be9b-84922b10b3d4","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":186,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"3c7ee9e5-d0c5-4e24-9fe0-6b6ef1266dee","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":186,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"1110c24a-c16b-453e-8cc6-6175479f8242","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":186,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"59df5b5f-29cc-48f9-89fd-fc1bb148d2e6","block_type":"box","text":"companies, and securities firms.","page_number":186,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"048ab487-145d-446b-9bbe-09241d4bba0c","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":186,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"5ce0a3f3-16ee-4f8f-bb87-070d44194248","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":186,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"107427f5-1083-405b-962c-e577bdcb7ca5","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":186,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"bc9933c0-b01e-4b45-acce-08bfc2bcd625","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":186,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"1d40640e-67d5-4567-8fb0-d85931235b5e","block_type":"box","text":"that security.","page_number":186,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"71e2395a-e7db-4e06-8415-1699dc4f189a","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":186,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"ba918f3e-e850-4e2e-8ae4-6a3a596e405b","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":186,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"ad8bcb2a-9a9e-472a-9d77-1452fc66cb9b","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":186,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"ec733884-ebaf-46c5-976e-d774f3b02243","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":186,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"c2719d3f-23ad-4a15-9794-1f0500e35f15","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":186,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"500bbb71-8a80-4b10-a0f6-ed19333ae463","block_type":"box","text":"categories.","page_number":186,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"54386664-d28d-4740-94c1-fe51f759d6f2","block_type":"box","text":"A-2","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"f7c9895d-c5d1-4f24-a77d-68d42a64e65f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eed9a6ec-a447-48f5-8c23-c4b31ed755e5","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":187,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"25b08583-85b4-4760-bcd2-77402ebacad9","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":187,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"ab44e0f6-0f89-403e-806d-2d5ad211801c","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":187,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"9cd9def2-4a70-4a26-83ee-e1452b85de47","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":187,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"636128f2-79d1-4f39-920e-820e392df32c","block_type":"box","text":"an issuer’s self-liquidity.","page_number":187,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"ca7a3b7e-f3cd-4ee3-a442-4b47efc5bce4","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":187,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"4f887bc7-0e67-467a-a19a-7c79469e5245","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":187,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"bb8a0192-8632-4dac-a4e4-a2391460a8c2","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":187,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"0b8b8632-5f09-44d7-bdc5-6deca4fad7d5","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":187,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"2bc3721a-1048-4b6a-8d2e-cdde7cb37033","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":187,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"216d3f69-d4f0-4849-a78a-8fcf0397e729","block_type":"box","text":"MIG Scale","page_number":187,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"9f1486da-67cf-4311-a859-1c4d59f44e5f","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":187,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"c99c3962-6e37-47e6-8b56-c8d9961c9b96","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":187,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"8bd95455-707c-4453-953d-e0d3c2e57522","block_type":"box","text":"refinancing.","page_number":187,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"55eafacc-d81c-4960-91ae-6e550072c6b1","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":187,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"10f14f1d-160f-4445-8698-45a95a613044","block_type":"box","text":"large as in the preceding group.","page_number":187,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"ad7b9896-1efe-408c-ad06-0ef1a2d6e256","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":187,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"ab4588ae-9eb8-4cee-891c-15e96ed6d5a9","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":187,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"aa0d0a7d-e83a-4d09-9e10-de9abee7288b","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":187,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"850c64b8-521a-4522-9e8d-2da377a0d819","block_type":"box","text":"lack sufficient margins of protection.","page_number":187,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"957c0c72-44da-4c4e-9fba-f8f21c57f271","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":187,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"a33f4f2a-8f1b-4ca7-9386-7bea17a12b29","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":187,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"34353846-10a9-4f3c-b152-58c0a1467315","block_type":"box","text":"are a long-term rating and a short-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":187,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"1145e78d-955a-4e07-811c-45e4ce3e58ef","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term demand obligation rating addresses the ability of","page_number":187,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"cedbea69-53ea-45d7-b73d-57b7438431c8","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":187,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"e73434dd-c348-4c9f-9de0-4730fb3a41e5","block_type":"box","text":"(“demand feature”) of the VRDO. The short-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":187,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"e8b10a03-48a3-410a-ad19-183b152ffc18","block_type":"box","text":"liquidity support use as an input the short-term Counterparty Risk Assessment of the support provider, or the long","page_number":187,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"82fb729c-7353-4c83-8334-10a54d1184cd","block_type":"box","text":"term rating of the underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of","page_number":187,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"f7e8e48a-b461-4d9e-aaec-d50d73266758","block_type":"box","text":"demand obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk that","page_number":187,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"edb2127d-0628-4a81-bf5d-9fcf02741205","block_type":"box","text":"external liquidity support will terminate if the issuer’s long-term rating drops below investment grade.","page_number":187,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"16457f0d-4f72-433e-871f-9949920dcd09","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":187,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"bcb515cf-e5aa-43ac-b8d4-2c1dbd9d6f2b","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":187,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"4b008371-39da-47fe-a91d-1c194885d68c","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":187,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"da386dc7-b037-47e0-93cb-10f9d5a044e7","block_type":"box","text":"VMIG Scale","page_number":187,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"c29e5678-c064-40c5-acea-c998f0104d2d","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":187,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"770d99e7-0435-496a-b0ac-cdedfd357529","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":187,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"c66d33c6-4b8e-471c-8813-54e333246b80","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":187,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"2ac3339d-3332-4cdc-863a-38a45ebd64fa","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":187,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"fa8cff46-398e-4606-a175-6fd09d2de3bf","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":187,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"45a04fbd-fadb-442c-b86c-56bda071c5f8","block_type":"box","text":"payment of purchase price upon demand.","page_number":187,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"059a91a7-897d-42eb-885b-43938e583e5f","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":187,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"c25c7e9d-2d0c-4165-8086-d8924b96b0b7","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections","page_number":187,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"d36e22d4-562e-4904-ab3a-9616316834e5","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":187,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"4810715e-c883-4ad5-9720-570e2f38c791","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":187,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"e9ebd4aa-c35e-477d-9052-bbc9b88834b7","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":187,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"962f67e8-b5c0-43f2-aac0-434fc699c3c4","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":187,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"c2c25e7d-0ad4-4466-988f-dd6ec5978a32","block_type":"box","text":"price upon demand.","page_number":187,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"131f7cde-bf2a-4f14-9885-ea7cbce3db07","block_type":"box","text":"A-3","page_number":187,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c086e719-06df-46e2-930e-9eac86c36ed4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39df1577-ab44-4890-9cbc-7b392ac93a9d","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":188,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"a135808d-2a9b-4584-a7cb-0faf255bdc5b","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":188,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"4ac20c6f-2f16-4cd0-a64e-4a59f9b2f2d1","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":188,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"66f77bd3-0b94-48d0-aebe-0bb5c4097a52","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":188,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"26b418ee-6ba0-4286-9c96-1ac56c356e6b","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":188,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"c902d1a1-ee09-4016-859d-1ee356044337","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":188,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"4496d776-ae6b-42ca-8017-59f4730af8e6","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":188,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"b4a359e3-70a3-4b45-befc-485caaf3835a","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":188,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"4279216f-7897-4861-852d-6341c8a84884","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":188,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"765b1131-aba7-4a7c-86ce-32309be5a073","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":188,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"721239e5-a394-4299-80ce-30d9c56d58c8","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":188,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"56201852-606d-4481-836a-d6f1e3c6b9aa","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":188,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"2f497270-79ab-433b-810f-e889dc45feef","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":188,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"575f4a15-bcc3-4982-b33e-db661c0b7f6c","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":188,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"679af0a9-93b0-4dce-b0a1-bd7a04d3431f","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":188,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"c20890f4-de74-4180-a8a0-4da704e8f701","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"ee05e0b5-df76-438e-b8c1-ed53464a1958","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":188,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"80ac3d2d-c851-483a-a6cb-0eb2c974179c","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":188,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"e728f97f-71cd-407c-9bc5-e4bcadbb76c6","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"799c0358-ea36-4072-b37c-1d0922fd280d","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":188,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"eb3d6f6e-1083-4f7f-bf5d-7c199089fb6c","block_type":"box","text":"•","page_number":188,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"af7b3066-39c6-421b-ad5e-f74e089e07a3","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":188,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"bdd6c9ab-2133-4aac-aa5b-253c2f081ce4","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":188,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"efede39c-d10e-417b-b163-725b2a1d0907","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":188,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"70ccd1d9-bb0f-467d-bbed-440bd19e8343","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":188,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"c8399108-97fd-43db-9116-547a250ec2dc","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":188,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"ced652a0-4157-4c04-a693-6cd49ca0f463","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":188,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"fb34a073-a4f3-43e7-9789-6d8407db7fab","block_type":"box","text":"obligations.)","page_number":188,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"d46812a2-a995-48d2-827b-9641f4aa2548","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":188,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"f811b09a-7ad5-481b-b7e8-acd67c6d0b7a","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":188,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"5560aa04-7d18-43bf-af7c-c3ec6d4d5260","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":188,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"c2f0454f-2d2f-4ac3-81de-c3a25c3aae5e","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":188,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"c383cb34-dd54-4d8e-9cb7-513506f025fb","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":188,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"67071421-02d6-4469-9df8-a154808329f9","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":188,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"576c2726-0783-4653-8d80-713194a50a00","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":188,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"b2697dbd-20b7-4b9f-8b9a-a1922d2d0b50","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":188,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"d6fbe76f-d059-4559-bd89-07de40be1d6f","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":188,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"8e75885c-bba7-4046-b3a6-d43a28fdb2cb","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":188,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"87203d70-5f93-4ebb-9452-c7e9108c0f1b","block_type":"box","text":"financial commitments on the obligation.","page_number":188,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"7af2114c-112c-4b7c-9b75-e72beeb4b0dd","block_type":"box","text":"BB,","page_number":188,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"2e530618-2443-41bc-b6e8-8adadece5232","block_type":"box","text":"B,","page_number":188,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"2cfbac8e-6f09-4352-afd4-b9752b0c8e67","block_type":"box","text":"CCC,","page_number":188,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"48159b29-db4f-4492-b90e-76dba930750d","block_type":"box","text":"CC,","page_number":188,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"4db31553-ecf3-4c8f-b049-8e2bde97e786","block_type":"box","text":"and C","page_number":188,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"8730e49f-78fe-4203-a558-8ea367673122","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":188,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"05f2346b-1479-4c03-a144-e05a5cc66522","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":188,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"10d68259-b568-4b6c-9d59-df09e8d1c3a5","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":188,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"ef4ff69d-41a2-4106-9d5c-2a4c1f5ae796","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":188,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"0dae1df9-5acd-4dcb-859a-3e6cf7f4c1f8","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":188,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"62c0e35f-ea87-4512-9ade-9d9ea8c1bd43","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":188,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"dbd87dec-cdb2-44bc-829d-8d994fd36292","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":188,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"c0ac596c-823a-43a3-8dc3-759e2f898ea0","block_type":"box","text":"on the obligation.","page_number":188,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"32dba262-75d6-4cc9-839a-5ded76f0b447","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":188,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"154ab42e-fdce-4f7a-afd9-c88b55acd0eb","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":188,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"2b52cd8f-662b-4e25-8b94-492d463db741","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":188,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"40f21ef4-ecec-4a52-bc99-e72e1ef44d44","block_type":"box","text":"financial commitments on the obligation.","page_number":188,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"fbc94469-4f3c-4fd5-b841-ded3ccf507a4","block_type":"box","text":"A-4","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"b96c64dc-d1de-4d53-bd15-38481fb466f7","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f3133ce-3558-4e5e-9b02-a1a39755bea8","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":189,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"ae7018fe-e4b7-440b-978e-9fb3607026be","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":189,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"afa58a6f-7290-49c8-af7f-02d3190d74a1","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":189,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"de7b5506-7564-4469-b627-f5ab9ae1c75b","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":189,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"a02ff939-c5c4-444e-bab2-cb30728e4566","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":189,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"3ca1bc16-0c5c-4640-ae3a-2cb1b06cea81","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":189,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"ae1661a6-c7ed-4971-9075-af303c0516f2","block_type":"box","text":"anticipated time to default.","page_number":189,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"615eb4ce-a9b3-4ac9-932e-0e79fbe04ea2","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":189,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"31c74d6c-2f2b-4867-a438-6fad9d5a56f0","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":189,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"0a41bca4-ab1e-4bd2-aef7-b5646a8e17ba","block_type":"box","text":"higher.","page_number":189,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"ae7d3341-6de5-49fe-9509-c99e44e1ab44","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":189,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"6df0ec72-9889-41b2-b1d0-01f768134678","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":189,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"e21616a8-19b2-4b4a-80de-a2111a6b085b","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":189,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"7e9f9190-52d5-4d05-ae67-76303675cec9","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":189,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"ccc42d34-a936-4a56-b2c3-766cc28c0812","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":189,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"e13c5191-c7ed-4453-8837-5c12ea45d0aa","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":189,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"a80bb90e-acdd-423f-8621-e09c7acc05fc","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":189,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"9638b933-be11-4ce3-bc0c-5904a0d43fd5","block_type":"box","text":"restructuring.","page_number":189,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"53f82b7d-467d-44e9-a111-271bc6b9ecd1","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":189,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"2f8f80dd-fdc1-4e3f-876a-70b4a20c4066","block_type":"box","text":"standing within the rating categories.","page_number":189,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"45f50a95-37d0-4354-a2c2-ee4bbb33c8c6","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":189,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"e15e9fd7-8c6f-42fb-9404-64fa1b507f3d","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":189,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"d672a11c-c530-41aa-b064-accfea5a34bd","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":189,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"c4a805d3-30e5-4cc7-a9dd-e5e85d0467ac","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":189,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"0cb9480d-749c-45d8-8007-eae9e3ed7660","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":189,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"4a7fd1f1-fdae-4640-ba6c-c45a716634cf","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":189,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"270e2969-57f8-4461-adef-45a68ce65695","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":189,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"81f23ae4-9489-49bc-9b9b-943c2661aa6c","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":189,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"c4a2dedf-bca8-43e9-b00e-ac03bf74ba3c","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":189,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"ce7d2a52-78d3-468e-9f7b-cbe27faf57a6","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":189,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"81befc4c-854b-4cef-a78e-665fd3754f96","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":189,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"cd333a64-270f-42f8-a8a1-6ed0ac3b7737","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":189,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"e98b9851-c6d6-436b-8bab-7c01765e39c0","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":189,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"2884fb49-b7fd-4234-9906-d9be2c516158","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":189,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"fc30fee6-3998-4c68-bb65-5b194837937c","block_type":"box","text":"financial commitments.","page_number":189,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"e14b0655-3da6-4780-a4d8-74a9d362ddbe","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":189,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"a9ea062b-82d5-4bd1-93b5-d7f3d93abe5e","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":189,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"e5e261fd-6eed-4fef-ac58-2fda160f8b7c","block_type":"box","text":"commitments on the obligation.","page_number":189,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"3fb6c10d-edfc-4c5c-a9c3-81202f751cbf","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":189,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"04680bcd-00d0-48f5-ba56-bcbaf073d613","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":189,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"360b945b-acb7-4c4a-95cc-befe16289606","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":189,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"cb3351ed-d3ca-4bf7-912c-9c044e87f264","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":189,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"a74b92c1-c593-49fa-b00e-ca0affdb0c1a","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":189,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"e9287930-64d3-41b7-a4f8-3de7182f4db5","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":189,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"4b91979e-c32b-4407-9c8e-eabf73c3f204","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":189,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"16f83cf2-50a6-4a18-9669-7e37acbea1b3","block_type":"box","text":"debt restructuring.","page_number":189,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"6717c76c-074b-4e00-9cbd-ba597ac39e78","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":189,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"339171ea-252c-4aba-9b90-dcfd27eddf6b","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":189,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"08b80413-d027-4c5e-8c19-824183fc542f","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":189,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"ca3d130c-6b61-4d83-9e2f-329edf535449","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":189,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"a33b909f-420c-42ff-9d8a-c3d15f7f2864","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":189,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"7537603e-247f-4389-9335-c6dc5bc2cf6c","block_type":"box","text":"A-5","page_number":189,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"d7caba39-d082-435f-a3b8-078a1c056653","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f08e2ad3-df8e-4e27-87ef-a1153bcf2055","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"6f899e8b-8375-4c11-90d5-c17af4da9705","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":190,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"de26c2e0-26b2-4b9c-a27c-4e086eceb118","block_type":"box","text":"as a note; and","page_number":190,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"7c614076-757a-4516-bf20-66c9720db217","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"4a62b6e2-3368-4689-8886-de0533a60c8e","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":190,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"d07c1c0e-106a-4787-8fe7-3890e4ef1c7b","block_type":"box","text":"treated as a note.","page_number":190,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"ecff06be-e689-4730-93a3-3a5e4c8ff030","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":190,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"05121135-71d0-4275-8c8b-6d7c7e4ead63","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":190,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"f4570550-ef28-4af2-abe6-f24d4b1c8343","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":190,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"1e78a9b1-755d-414c-b07f-194f297cfcb2","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":190,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"5dd01e96-89db-41c6-a7c0-f6416c23b0ae","block_type":"box","text":"economic changes over the term of the notes.","page_number":190,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"d901bb45-f734-484a-8f1c-2fcb5b0604cb","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":190,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"24329d2d-b29f-4ac7-b3b8-8c82326b8ca0","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":190,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"1a88d563-2a8c-421a-978b-da73124e071d","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":190,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"ef8a9844-2aab-40bd-be51-75574a73b31e","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":190,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"6cc9d664-6d93-4952-946d-27689492df58","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":190,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"77027e74-1ea4-4a6c-89ea-51fdd747cd4c","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the","page_number":190,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"b1208cc8-4924-4303-a74e-b0ffa0b26141","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":190,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"f289e7c0-ca40-4ddd-8780-3055430868a1","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mortgages, asset","page_number":190,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"1cb21de2-412f-42f3-9f83-8389f82f7075","block_type":"box","text":"managers and funds. In each case, users should refer to the definitions of each individual scale for guidance on the","page_number":190,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"d38fe4c2-2366-4b09-abfe-02e69ae43f89","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":190,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"e518589b-b912-43fb-89ec-a9cc46ce5057","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":190,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"1da4fd44-b94d-4fdd-a682-3f2cace1b8a6","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":190,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"f452deeb-7141-4926-b4f3-7ad322ca972a","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":190,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"e2dee767-dd56-4cf1-86d1-5ffe2d2bb692","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":190,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"e3ada9e6-51e0-40df-b300-7459370e0723","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":190,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"9d453cc9-1d73-4382-b3f2-59ce763663c6","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":190,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"7f48e4ca-59b8-4387-8a0d-aef1c47e340b","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":190,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"2cf933b0-ceaa-4d75-91ac-38816979174c","block_type":"box","text":"receivables or other financial assets.","page_number":190,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"00c07096-45d8-4c1f-9c5f-c72b17d66915","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":190,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"06c7dffa-42e6-4f50-b04e-9cb14231792d","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":190,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"cdd96cf4-b6b3-4f01-8521-25c9dd73558d","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":190,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"4671689b-5038-4fb9-87ec-794533a806b8","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":190,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"884f6bba-36d9-46ca-801d-f565e5231c5d","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":190,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"ae6c46b2-08cf-4e3a-b092-af3e4e5c7d3a","block_type":"box","text":"occurred.","page_number":190,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"9ea0184a-2882-4cd5-93f9-3315a9c2da4d","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have","page_number":190,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"3ce42393-8637-44df-9611-98c1e60e17c3","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":190,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"a2b3729e-d009-406b-bacc-b86fe6a2ca00","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":190,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"43cd3c1a-8f48-4b14-88bc-c7bcbc82c7f6","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical performance of ratings","page_number":190,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"5c02c53b-3844-4532-85bc-22977ce4b7c4","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":190,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"84a4b7f1-d5e5-46de-82c1-522c0f5aeec3","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":190,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"1d72e5a8-1815-482a-9477-5b1f030df6f7","block_type":"box","text":"rates.","page_number":190,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"16c43d47-25c3-4e00-a65e-5a1db61bc7c0","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":190,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"bc1edc7f-b48c-4ea2-9941-7490b66affda","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":190,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"94699dad-b1f4-4a35-be33-84c088b48f10","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":190,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"07c97cdb-0d62-41b4-aa96-5471e5bd279c","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":190,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"a1bf7ae6-ff8b-40c6-ad8b-0cc5e262e3ee","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":190,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"c4fc5a54-6018-474d-85ab-5230cdb19b3f","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":190,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"204e4434-10c8-4860-ba86-599385f67eae","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":190,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"3088c647-fe15-4333-8368-44126ab63a11","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":190,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"8c1884c8-0edc-450f-a9cc-df58d88f0fd8","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":190,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"75c4c06e-0739-479a-b65e-59ef0dc6c405","block_type":"box","text":"i.e.","page_number":190,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"61d2254d-98b6-49c7-851c-002e04d26219","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":190,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"0bce3a58-e7f2-4c42-b602-48d411047353","block_type":"box","text":"the obligation’s documentation).","page_number":190,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"aa4557eb-5b3d-4cec-91b3-8318005b8106","block_type":"box","text":"A-6","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2c92e7be-555e-4b6c-b5b1-ff1bedd6c119","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eddace2d-d1d9-4299-bfbb-9271101fde85","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":191,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"f5f3d3d5-d103-4fd6-85db-2cf947fc149f","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":191,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"93192b17-476f-460f-9286-131083e9710c","block_type":"box","text":"agents in the form of a rating letter.","page_number":191,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"3faa7393-cbce-4bb5-b95d-9cb516257434","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":191,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"c7af5670-7829-42a6-8d81-473ef594f79f","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":191,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"554f711e-bf2b-4591-853d-344a13af3a9d","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":191,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"2c7e8abc-afd3-4204-8265-6ce733bf49f7","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":191,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"a9965d97-b4bd-4177-bb82-f2f347981ec5","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":191,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"ed05afa0-f4d7-4142-8328-64d55fe1ec6b","block_type":"box","text":"e.g.","page_number":191,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"af717d8b-05cd-4a39-9cfb-749c1db0e435","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":191,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"9be7aa1c-f4e5-4031-a95d-0ca959deb2c3","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":191,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"51e0f1bb-b155-4884-b5a1-ac9bfb0fd213","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":191,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"9b4a9b50-fe4e-4d14-9255-f11af735a80d","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":191,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"73e1377f-199f-46b6-b886-f1aace9351a4","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":191,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"e09cf4dd-4907-458a-9c22-ea602269de13","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":191,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"927f5628-2e82-4b22-8e1e-95a57225dc11","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":191,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"467309c2-4313-439a-9f74-ec97c6131989","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":191,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"35af75ab-6d6a-4422-a9bd-d6e5089ec4a6","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":191,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"8706ac17-e559-4063-aa54-fff5abb3df0b","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":191,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"7dddbf03-91ff-4cd4-b05e-90b9ce8445e9","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":191,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"a43dc276-9bc8-4018-ae84-170dc9995893","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":191,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"b7638774-fbc2-493c-accb-e8b5ae901c56","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":191,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"3ccc9650-4c29-485f-9fc3-15611eb92165","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":191,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"125a1f9e-0935-42ff-9a95-55f5a110a2aa","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":191,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"ca8047f9-e780-4c69-b9ad-d4c709ed216c","block_type":"box","text":"Ratings.","page_number":191,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"bac0895d-de9f-4fb8-bcf4-4e3dfa3886a9","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":191,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"78057b88-a0b7-4740-9f2f-c8401bf452bf","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":191,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"1c998c39-ed5a-4865-9ca7-f3e8e8ae44f9","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":191,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"b41022ad-616f-475d-b29e-4adf974ee387","block_type":"box","text":"obligation ratings.","page_number":191,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"ec55ec1c-e6d5-46da-a522-4195d3dad407","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":191,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"b9373d09-b6a0-4e26-8ec1-06ba68a06f1b","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":191,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"3457e467-088b-4ed8-874c-d01a70570fd7","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":191,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"f858c976-3f5a-4aa0-bee0-c89e31ef245a","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":191,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"cee282e7-462c-4fd3-9dc4-cfc2b4d367b7","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":191,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"62aa12cc-9514-4f24-bfb4-0eb56cf5d926","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":191,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"2160fc24-9659-41b6-8515-bbd3382605ce","block_type":"box","text":"to foreseeable events.","page_number":191,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"a78316f6-c602-41d0-94b6-e7cd480aab18","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":191,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"cd31f66c-2cc3-475d-a2a3-01bef41df4af","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":191,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"eec52a86-e6c9-4d83-9754-ac1308855ad5","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":191,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"e4e1bdcf-219b-47bb-bf18-a66b09a9cb5f","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":191,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"bfd1bcfb-6314-4597-b5df-43ef29fa93f9","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":191,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"6ca6531b-dc7a-48f6-be93-43fe2720c462","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":191,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"97fd4767-d725-4e7b-90a6-6854f8c9b849","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event of","page_number":191,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"c4a63340-d238-439c-adde-815ace573252","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":191,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"195a80b2-4ee7-4d24-9e10-0687195b2c26","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":191,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"4d8ecd42-f236-48f5-b332-8a102ce31f96","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":191,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"d3f49101-0409-417b-88b6-812bb21f1cf0","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":191,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"b1c70871-8818-47a0-ab80-be1c3c89e3c5","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":191,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"6d9f3665-5b68-4cbe-86bc-3c93ea2e9e60","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":191,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"5f5ca24a-f1c7-4d5c-be02-d53bd164fbe3","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":866,"width":808,"height":11}},{"id":"32e0b51c-c7b3-43e9-80c2-b3cd2c712371","block_type":"box","text":"relative status within major rating categories.","page_number":191,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"c16fe12d-8ea4-4f26-b322-604194f8eb59","block_type":"box","text":"A-7","page_number":191,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3854f552-dcbe-4915-8d55-8723351d90c1","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a2b7694-2abf-4b5e-993d-1f3625e3284c","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":192,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"b018e00a-90db-4ba2-a4f1-1aae453482ef","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":192,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"e1981b13-1334-4d2e-b333-9fb55c4b0fcf","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":192,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"38881a38-f390-4f24-9367-26724bbae873","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":192,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"ee4c8c60-b005-42a6-8a31-f35933967b43","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":192,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"1fc1be3d-134b-4e5e-b8f8-206e8312b55a","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":192,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"bbb88da2-825c-4816-a816-ef2a642e057c","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":192,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"6a6fbc1a-ff90-45d8-ac31-55481c52deb4","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":192,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"6f18be3c-21d0-4233-8828-9ac30bb99620","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":192,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"0f319e03-8e8d-4b7a-bdb4-ee64e2cb44e7","block_type":"box","text":"finance markets.","page_number":192,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"a064db06-3fc6-48df-9c3e-6321520aed6a","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":192,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"e2164759-cf1c-4c79-a688-0951fc102512","block_type":"box","text":"F1 Highest Short-Term Credit Quality. 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The intrinsic capacity for timely payment of financial commitments is","page_number":192,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"2f1c279e-640c-4537-a29d-6910ee73a650","block_type":"box","text":"adequate.","page_number":192,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"92d1d9f5-6ba3-432f-a761-eca3199e488c","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":192,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"21c998bf-c9e6-4d3b-81a7-cba0867d0e2c","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":192,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"db8953f5-8f03-4024-8d10-29d525b5fe89","block_type":"box","text":"economic conditions.","page_number":192,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"30c619ec-42c5-41e7-9aa8-344eadb2bd63","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":192,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"58b06b10-6edc-4bc4-9c10-05ac248a8660","block_type":"box","text":"RD Restricted Default. 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to the","page_number":193,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"f08e980b-8825-4829-9d25-56b832a98b52","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":193,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"8eba70db-631a-4cd1-9c2a-f3daafb974ec","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":193,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"97fdd94a-13fc-45b4-ac49-05f43c1dc58d","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":193,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"a2afe322-d7ea-4c49-ada8-3b9339d9c3fb","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed 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The Guidelines include “climate and decarbonization” guidelines which","page_number":193,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"bc01b7f7-3900-4a02-af32-67279cd11529","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":193,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"2a9285c8-129e-46a0-8124-02a823bcae18","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":193,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"8edfa147-47f9-4546-a47b-4516f44b700e","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":193,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"ab067f4c-94d2-4570-b621-756ba618202f","block_type":"box","text":"Conflicts Management","page_number":193,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"bc1754b7-fe3b-42e3-b9ca-c6cf60a37654","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":193,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"5e31ecdf-3e56-4bc4-afb2-e9fb1da21d2c","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":193,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"8ff9bd79-e0ff-421d-a910-c9bd7759912c","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":193,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"a22f9fd7-bb1f-4277-a19f-60d22a6245c8","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":193,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"cfbcde02-e75f-49b8-94e8-2db9e763d959","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":193,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"e9104e0a-9651-4948-827f-d1c08a5e23cd","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":193,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"5712f9e2-6bc3-48c8-b446-f61bdcf0ad3d","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":193,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"5a1f8ee5-fb44-49f1-9a18-d9b7d5bcba8b","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":193,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"8a563e50-faf4-4cc4-90f3-ed572cd7c6c6","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":193,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"321fb49c-f6f2-4199-8834-528d098481ba","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":193,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"21b76d24-f326-4cf5-9b10-7b590230a58d","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":193,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"4d3e66a4-814b-4a03-88d8-d98c7dd1e4fd","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":193,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"c848005e-bb19-45f0-9cc2-de9fe5eeb262","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":193,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"fdc12d2b-d8d2-4d22-a9bf-5a9ed52ba15e","block_type":"box","text":"connection with proxy voting.","page_number":193,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"a5b2866e-f44a-4dd1-8ad4-a5f10036a654","block_type":"box","text":"Reports to the Board","page_number":193,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"4f92f9f9-d3de-448d-be6c-23834369866e","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":193,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"4f87b74e-278d-4146-8693-c065981e4f5b","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":193,"box":{"x":102,"y":862,"width":794,"height":11}},{"id":"cea09da6-8f22-4d79-b151-05741548f7d5","block_type":"box","text":"were in accordance with the Guidelines and (2) any material changes to the Guidelines, including material","page_number":193,"box":{"x":101,"y":877,"width":753,"height":11}},{"id":"c627cc9d-6a57-47c6-8b66-bf5e44a4b8e1","block_type":"box","text":"changes to conflicts management practices, that have not previously been reported.","page_number":193,"box":{"x":101,"y":892,"width":600,"height":11}},{"id":"8fbc056e-357c-44e8-a64a-691c0edd278c","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":193,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"fda8f7bf-9438-4d8b-bc5d-f96120376c2a","block_type":"box","text":"BlackRock","page_number":193,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"36aca48b-1449-4db3-bfe5-d6c8825c1ba4","block_type":"box","text":"Public Page 1 of 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BLACKROCK","page_number":196,"box":{"x":74,"y":101,"width":235,"height":9}},{"id":"fee4cd18-ab6c-4e0a-86f5-a1c6df7ec0eb","block_type":"box","text":".................................................................... 4","page_number":196,"box":{"x":316,"y":101,"width":588,"height":9}},{"id":"489aa976-2299-4784-a9ec-ede60ea9c2c2","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":196,"box":{"x":73,"y":117,"width":424,"height":9}},{"id":"c5ea66cc-0e3b-442c-a82e-07aaf15b3cef","block_type":"box","text":"............................................. 4","page_number":196,"box":{"x":504,"y":117,"width":400,"height":9}},{"id":"e8fd3157-40ce-4a64-ae9c-c0cf156c4549","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":196,"box":{"x":74,"y":134,"width":451,"height":10}},{"id":"eba3976b-dfb4-48dc-905d-e1ba3362d16f","block_type":"box","text":".......................................... 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BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":198,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"97b786ea-6113-4aff-9a50-effdddab8254","block_type":"box","text":"this work with research, data and analytics.","page_number":198,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"71bf990d-5e5a-4c2c-9956-0b02de86e1b3","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. 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Our","page_number":198,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"0eb1a1d3-1124-4511-9249-9d98166793a4","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":198,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"b661e3ea-119e-4a5d-a2d3-3c46f624e924","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":198,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"1fb48d20-7981-4753-88f6-22d897b95277","block_type":"box","text":"shareholder meetings.","page_number":198,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"443114c1-c286-41b9-843b-1b463bffad84","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":198,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"ed38c5d1-23db-491b-92f5-515669cdfb81","block_type":"box","text":"investing.","page_number":198,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"bc1ccae2-6f11-4dbb-9e29-dcb5334d4f06","block_type":"box","text":"3","page_number":198,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"10aa5dac-06bc-4fde-9dea-ef63f85acf18","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":198,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"2602fe0b-a261-497d-a485-7e91f51bc16f","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":198,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"e481239c-6eed-4ac0-95bd-0e286b2c4d08","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":198,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"2ebc2758-c1fa-48f8-af24-2a09bf7f1bb4","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":198,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"48fad6ae-0b35-4aee-bb44-5c5fa4e6b7cc","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":198,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"a83ce3d3-9de0-45f2-9c17-03d807ea1f74","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":198,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"98f99a6f-06ac-4519-9592-0073f9e32f84","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":198,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"1d132278-e1b8-4efc-af39-6d5751ef41de","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":198,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"18689f09-6479-4c6e-b042-6deabfdb01c8","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":198,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"2e14e0c2-7a4c-46a4-a124-a2bbd5f9f5a9","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":198,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"1c466a35-1aca-4243-85e5-5610027480f7","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":198,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"3b3905c7-39d3-4c7e-b1d7-7bfcef5a43e2","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":198,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"e84872df-72d9-4a02-85ab-c208f173fb3f","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":198,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"b399d410-e198-45be-ab99-0eac77537754","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":198,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"1da3840c-0fe3-4888-aede-8add813b2e20","block_type":"box","text":"management teams and board directors","page_number":198,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"c40fb6b1-8db4-4b87-87b7-2db6c132cd4f","block_type":"box","text":"4","page_number":198,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"469a8e51-d477-4ffe-afdc-1e9cbc626872","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":198,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"438a0bbb-5c95-4592-9a5f-5080e0cbee10","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":198,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"6fadac14-e816-4037-9f4b-f91fcdba9b75","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":198,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"00439aff-1cc9-47d1-957c-552a6a71292f","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":198,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"6b25b0cf-fabb-442f-af3b-f0d304a4bddd","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":198,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"78dab87b-8610-4810-8f77-b9900b43b156","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":198,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"1f186bd9-97e6-45b0-b927-fa56b568b318","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":198,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"7815c62e-430d-4e03-988d-72d13dd159d9","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":198,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"98378cb9-bdcd-4da4-9a1c-143d9dd23ee3","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":198,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"fd23206f-d167-4df4-9fae-23ec30ff5e1d","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":198,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"5ab23bfd-21a4-46db-9adf-51223872a162","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":198,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"45492060-163e-4916-b08c-73c2fc508b20","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":198,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"3439eb4f-d560-4512-b69a-b716016bc5e1","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":198,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"573fb42b-256f-44e1-a67d-2aabc8aa147e","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":198,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"6aa79a0e-30e6-471c-b17b-a9c288a89934","block_type":"box","text":"3","page_number":198,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"f37f60f6-1675-4881-a174-71752fcefd90","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":198,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"2d2a60ee-f382-409b-ba40-9469e8596cca","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":198,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"4e412230-9811-40b4-98de-dc76afd1b7af","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":198,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"d1de0590-39ce-4001-b30e-3a6f32e91680","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":198,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"eb452617-0137-42eb-b657-8f3ee9635fc1","block_type":"box","text":"4","page_number":198,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"7d0f6f17-49e1-4d64-80d1-8e844fe50ee2","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":198,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"b696f1df-6f37-421a-a0f1-97e4ae16c60e","block_type":"box","text":"boards and their members, where relevant.","page_number":198,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"7e923078-c822-4c1d-a4ee-21dc946006b5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"66645960-1621-414c-855d-f43c0531421b","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"a83299d8-7dbd-4a1c-ab93-754448e22bc3","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2e9447bb-81af-4a55-a69a-036f634d2223","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":199,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"5e634350-c8ca-4831-bb9f-b3ea14a1c46e","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":199,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"2cbc09d2-dbcd-46ef-9b1f-1e8a1623ec6b","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":199,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"4f93c621-7a87-492b-8746-2fe945e18e3a","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":199,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"687bdf1f-dfe2-4dab-b0f9-89d064106def","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":199,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"4dedd74f-b049-4f99-8303-8e96a3e2fb6e","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":199,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"79525afc-9bd1-480f-b8d6-c8051e2070b1","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":199,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"e00671b8-b0db-45c4-9a64-361deeaf9fe3","block_type":"box","text":"5","page_number":199,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"5bb22594-ec1c-4102-a2a2-00b596b1e854","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":199,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"9f3adc23-9db6-494b-93d4-2b7bd598a4ce","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":199,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"ce1bb09c-314e-40f4-9649-0fb941204a71","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":199,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"020705fa-dacf-41cf-9bbd-07600ba812b3","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":199,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"1e6d9100-243c-4958-855b-11147ab2c914","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":199,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"57a99cae-fed5-41ba-9d9a-5445feb429da","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":199,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"a142050a-7241-4ee6-936e-06f1b781d4b8","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":199,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"e8b73a13-f900-41fb-b447-8cf780037f19","block_type":"box","text":"5","page_number":199,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"3f6de72a-20ad-4fed-b9cc-eccb0092dd1b","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":199,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"8efa914e-fcc7-4695-8a3f-5ad7949b414e","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":199,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"a6e97ea5-102a-47fc-b08e-9d9ec29249f6","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":199,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"7d8490ca-49b1-4a42-8497-6ec4842e5647","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aab08a58-edff-4859-b082-012d56a54165","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9e474bb2-4a5d-45ab-93ba-3d8742638865","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d9ad9a9-214f-4e41-aa60-dd34e340c191","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":200,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"e4c4f53a-5557-4e7d-a503-85271b5fbbe6","block_type":"box","text":"Roles and responsibilities","page_number":200,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"8fbf0925-e9b2-4f5d-80cf-b0efb83eb3f7","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":200,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"8b574dde-8988-4067-a90c-819cd95bfd71","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":200,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"be95dc2e-f90b-4a35-aceb-5542e2a84664","block_type":"box","text":"6","page_number":200,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"d6af5e46-b6c0-4271-ac07-e9b75b7518e8","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":200,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"efbb8db4-6cd3-45b9-94b7-f342eb324656","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":200,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"fa1f3a75-c6ff-4c50-884f-2ab1fd6cbb5b","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":200,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"20ea5301-661e-4724-b402-de257f3f4eb3","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":200,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"386b53bd-d10a-422a-87b8-6c60ead93787","block_type":"box","text":"performance over time.","page_number":200,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"c2edbc04-6ab2-4c94-87ed-d68545acdf4f","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":200,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"b34d7942-6a3e-408f-bfd7-b569f5439fe6","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":200,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"e2d9d582-5647-4ca6-ad36-17d1588f71bd","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":200,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"1ccd57f2-0225-421e-93e6-bf5c88f025d3","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":200,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"ecd96e7c-2fef-429a-8373-3f8a495e4a96","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":200,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"094a25e4-582d-4ddb-88d2-b0ccc679305c","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":200,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"583687fa-72b0-447c-8610-074041adc48d","block_type":"box","text":"Composition and effectiveness","page_number":200,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"33723778-0730-4e79-ae14-6e5e3d03b9f6","block_type":"box","text":"Appointment process","page_number":200,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"fa476365-49ad-471c-829e-b969fc66e586","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":200,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"396939c7-85bd-4a91-996a-902da74a5957","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":200,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"f2832e1c-3c4b-4173-a3e5-75be61569d37","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":200,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"146d3912-8f03-4105-80a8-f0a9b2718979","block_type":"box","text":"e.g.","page_number":200,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"b0d24f0a-3d80-4240-8c44-e9fa6a08e001","block_type":"box","text":", sector, maturity, geographic","page_number":200,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"c35d336f-3751-4c71-89ab-956f437bedb6","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":200,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"c209827a-8200-4d0e-a13a-a8b620135c15","block_type":"box","text":"e.g.","page_number":200,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"ceee1a46-482c-4ced-a24a-f7bc117cf031","block_type":"box","text":", financial expertise, industry track record). To","page_number":200,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"52362c72-86ab-479d-af73-3f18bf592f3e","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":200,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"38d9f095-15a8-49ad-b951-add97cb14532","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":200,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"3c677f2e-ac27-4834-a5a5-dae619c1f677","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":200,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"6515a6fe-4bf7-4a3e-a44b-1098e9616ffa","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":200,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"b4eccf37-b335-4652-a333-98c2d2a92f01","block_type":"box","text":"and local market requirements.","page_number":200,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"52e34592-7ad1-4cd2-a707-63f1d5ef4231","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":200,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"7a19b252-67dc-4d0b-aabe-be2df0bfdd60","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":200,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"f105269d-c972-4452-8f90-a816a840394b","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":200,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"fe9e58a0-6f65-4bac-847c-5ce44d8ca0aa","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":200,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"017d2533-a126-4475-afc9-f133efc20b11","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":200,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"a7c2430c-c78c-4666-8dfd-0852588dd7e4","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":200,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"a4dac082-c4e1-46c0-8d92-2b1da8dd240c","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":200,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"35b3537c-9cd7-4d4c-9ee7-170309faace7","block_type":"box","text":"Independence","page_number":200,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"095ceece-deec-4a32-8bf4-4fe7201e1809","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":200,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"215c31a7-6f5f-49ea-8f9f-a97ea86c11e2","block_type":"box","text":"e.g.","page_number":200,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"3bb71b89-4124-4128-9634-21b40b0be4be","block_type":"box","text":", government or","page_number":200,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"ed172c4b-da5a-4355-b3be-0133e945f387","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":200,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"dad8c6d7-2e18-4d44-b885-88327f6b2dfe","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":200,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"a69eccfe-ae5d-4ce8-8319-61e5eb9d8bb2","block_type":"box","text":"conflicts of interest or undue influence.","page_number":200,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"31590f02-4db4-4cc8-8c95-909b63efb125","block_type":"box","text":"7","page_number":200,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"61656638-d571-40db-b679-cbd0610c1b44","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":200,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"3f1bf0e6-60c3-4b3a-9ca0-3a23ad59535b","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":200,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"7587431c-4da7-4e82-ae58-3e7c6a220c04","block_type":"box","text":"independence should meet those local requirements.","page_number":200,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"b65d72f9-9416-4dc0-83d7-cef0986c6f0a","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":200,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"217cb129-3775-4db7-a64c-e7075a165218","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":200,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"296a6b73-72c9-4f23-9770-7ee2170461b1","block_type":"box","text":"composition if this is a perennial issue.","page_number":200,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"667bf390-748f-4bcf-b19c-5e80c49b657f","block_type":"box","text":"6","page_number":200,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"ac68e7e5-3a45-4468-bd65-2665b59e4387","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":200,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"f3eea359-fac4-408e-ac66-aa6914b2614a","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":200,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"082ae2bc-88de-477b-b37d-daffc66a5fd8","block_type":"box","text":"7","page_number":200,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"291662f2-ffeb-4ddd-b1e6-aeb1bf5ec2f5","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":200,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"0f86587f-6f93-4453-9648-87456f54499e","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":200,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"606751e1-fd76-4e42-9a0e-282679958571","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":200,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"f0eb71ec-ceda-41c9-8c70-e07ce21453f7","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":200,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"4f71dc80-aef2-4263-a52d-33811cb56614","block_type":"box","text":"of the company and shareholders.","page_number":200,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"587c77ac-1949-4316-adf4-8508b927d336","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"23d1440d-5fc6-4459-b4d5-2fb05669a121","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ae028979-372f-46de-bdf7-ddf612dfeca8","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"340e2607-6d33-454e-92d3-2e9ab60be691","block_type":"box","text":"Independent board leadership","page_number":201,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"6367585b-950e-4e36-9575-31e740d534a8","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":201,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"73b6588f-f29e-46a7-bb61-43681ee7c2f8","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":201,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"df70ce34-241d-44f1-9e7e-7aec6450feb7","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":201,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"1b883d1d-01ed-4bcb-ae75-6fca0b4cf8bd","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":201,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"57ffb52f-f6a1-4bf4-aa03-a7ff0182028e","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":201,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"52cef1c7-b967-4a5b-afa6-7d6ea92c1656","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":201,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"a74b9d3a-7ea3-4148-b7eb-09759d435e21","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":201,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"8f145e14-af7a-491f-a639-5e1353825f14","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":201,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"14d536d5-8bef-44b5-b527-0b66ed595d97","block_type":"box","text":"how it serves the interests of shareholders.","page_number":201,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"afd66014-99a1-4255-9a05-e8b8c3ba32e6","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":201,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"9e6c9be8-ecb3-4891-8049-405f162ad623","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":201,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"a6655b54-f049-4080-b1ff-2ebf485f2d31","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":201,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"17df8e24-2867-47a5-8c11-017083e7abb4","block_type":"box","text":"Tenure and succession","page_number":201,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"84f17af5-f234-43ec-ac6d-8f5d00df6d29","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":201,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"75da76af-15f5-48f4-8e47-c63d85c70f06","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":201,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"a1c0defc-8682-448c-8cba-327953a87859","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":201,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"267ca048-ad93-44db-ab1e-7d76a83cbca0","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":201,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"c4b5ffaa-143f-4d7d-8a91-03004b83dca1","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":201,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"1c5ab5b3-bd59-49cb-9666-47b82c293d1c","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":201,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"5f1a61c3-931d-4fea-8130-b78e11f483d2","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":201,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"87f77c75-ef42-4572-b936-f6f08ec3cb9a","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":201,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"f4f79c4b-cfdd-45ee-9e34-b0ed76cf14a5","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":201,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"2053b2cc-e001-44c8-bf66-32deccb674cb","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":201,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"a6d2dddd-552a-47ed-9a21-d51c56fa8292","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":201,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"204d4bd1-7c91-481b-a1cb-ad288f21a83b","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":201,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"059f112e-f560-4262-a51d-ccbd21694b86","block_type":"box","text":"for their continued service is not evident.","page_number":201,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"962e81ac-868f-45aa-bfae-a5dafe575fcf","block_type":"box","text":"Capacity","page_number":201,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"318f2100-8ba4-4bc9-8d06-6802e03f79a6","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":201,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"8dc4dcb4-ffec-43da-8495-a47f320c1d73","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":201,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"f846160f-b28e-45b9-9d1a-0c6c877c82d9","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":201,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"3dbd447d-3400-44e2-9d12-bee7f349a789","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":201,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"58d2c81a-9ea2-433f-9c1e-8ac681c24ca4","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":201,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"6f207f22-f793-4b38-a3d9-996d55ded2ab","block_type":"box","text":"determinations across markets.","page_number":201,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"6e34fcd8-8076-415d-83b5-23546770c1b9","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":201,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"931d0758-80ad-41c6-b452-d09bcb6811e2","block_type":"box","text":"their duties to the board and company.","page_number":201,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"f4158365-e43f-4193-ad4c-2c08aedc6f12","block_type":"box","text":"Director elections","page_number":201,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"fb199e6e-2061-47b5-a289-fab10295d9bf","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":201,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"17faa5c1-f1ab-4c74-8bea-da8da69c61c9","block_type":"box","text":"structure","page_number":201,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"7a8f87df-914f-4b6c-bcc1-8fb42f747df4","block_type":"box","text":"8","page_number":201,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"a2a1e73a-2e85-411e-9e61-419cfcb3b401","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":201,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"6a785c37-102a-42d0-abf6-48f10c6c6958","block_type":"box","text":"basis of its business model (","page_number":201,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"41529235-5b82-4528-99f6-7291c5c07edb","block_type":"box","text":"e.g.","page_number":201,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"cafb284a-a9fe-4b36-a149-273ec5d2f822","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":201,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"9b75d9e8-b154-4208-9e32-d3d7a8364f5b","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":201,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"e316f974-81cc-42e6-b48e-c9ce9bf63223","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":201,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"102a9e10-29f3-4760-9da9-f5dec6f9c23c","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":201,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"a20da313-adfd-4dfe-8a6e-7548b1915f30","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":201,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"8e83182e-e6b8-4db0-80ef-54571d582d12","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":201,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"b6d7f281-46e9-4c7a-8f93-79646d6e1217","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":201,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"b9278361-69e0-458a-9532-c143781fb46d","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":201,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"79cbf505-df6e-4648-bd98-88ffba7eb710","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":201,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"925ee36d-803d-488e-84a0-6fea3647e741","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":201,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"5c523918-e81a-4a69-a886-3e945a434b02","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":201,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"9f9a72e8-d1a9-472f-95fd-07948e69ce51","block_type":"box","text":"8","page_number":201,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"5baf5db2-2b30-44d4-848f-2ba3f8866da5","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":201,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"02d1c8e2-73f2-463f-9557-db41bc58b225","block_type":"box","text":"directors stands for election in any one year.","page_number":201,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"5b0b1b4b-44f8-43eb-8eda-22bd5f8b90c1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"13ad3e4a-195f-4927-a006-5820dcc81fbf","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"12394edd-de49-4b17-93aa-1d08517528de","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5acdfd0c-ab24-456a-b00b-9786346728ba","block_type":"box","text":"Committees","page_number":202,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"8358ec4c-0a4f-443a-9ecd-3f0f46cb0f1f","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":202,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"1da05ce8-accb-4655-9314-a6d3ac208400","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":202,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"5b6cb9c7-18c5-4226-a85b-b48773f01762","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":202,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"63a3a9a7-a13c-41c1-96df-6347be2aea37","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":202,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"9e1115db-3eae-46a7-b4cf-a6b66eca7a83","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":202,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"1eb8248b-b935-4eec-a63b-52afb944d865","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":202,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"f8034c8f-50cb-401b-a263-d8f784db5102","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":202,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"94932bae-03e9-40de-9cf2-920422a577a3","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":202,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"255a15e8-4159-4273-8baf-968237920f11","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"1ac4fd08-645c-4d50-b7f2-c50da8505914","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":202,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"00e089b9-a100-4bd5-8b7d-3f8465f16dad","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":202,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"b9f41d95-4660-4546-b10e-06b473071c9c","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":202,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"2557b868-a7f5-4cf1-9844-c95aa447eecb","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"22d7f04b-4d73-4cad-ac0b-0a7c168b9203","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":202,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"10a93a38-172b-4422-9c44-62fab85aa43a","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":202,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"3f6f7200-8e0e-4507-beef-424f858c36db","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":202,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"4e7df213-85a0-450d-98b5-b40d2bdacc74","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":202,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"cf39d1fe-852a-48ca-a326-0b49d3acf985","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"66604c5f-2f3b-4c0c-a0e0-6cfe3a75a85e","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":202,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"7cb04225-2216-42ce-8c7c-c909f67abaa8","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":202,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"544858a5-7a88-4d24-b6b5-17be34f6e6b1","block_type":"box","text":"firm-wide compensation policies.","page_number":202,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"54c44ffc-b1ab-4a66-907b-2f93defe94f6","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":202,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"90e805a9-5bd3-4717-b07f-7e8d9b6b6c7e","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":202,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"730503b1-811a-4916-b46a-71c39ce0dd19","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":202,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"c67fcf07-246e-44f6-8e77-e8e58ed09095","block_type":"box","text":"Board and director evaluation","page_number":202,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"40614d7f-ea83-49bc-bff6-a09917493b1a","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":202,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"92aca33f-d563-400a-ad8c-06565159b939","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":202,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"ccf9f5e1-1643-4237-8dc4-afa9dc555ae1","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":202,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"1f2fa951-f972-4f56-bf7e-17ee909e8533","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":202,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"074fe6d6-3892-4891-b3f9-2e5924ea7829","block_type":"box","text":"a result.","page_number":202,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"e8e55c3d-0367-44d3-b0b2-57383cacd893","block_type":"box","text":"Access to independent advice","page_number":202,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"b3cb9340-b84e-42a0-b9a5-4c5d73576e12","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":202,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"55d3e52d-224f-4379-9ff9-706e9687efaa","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":202,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"08512b1f-5c5b-41e6-a321-3124fa01b581","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":202,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"8386ce46-1874-4ae7-9eff-6b9c5d8537b1","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":202,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"1aadef57-2c24-40df-a81a-eefe322b0758","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":202,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"961cddcd-4940-486d-8880-e41d8424161f","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":202,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"3fe958d3-1d51-4e0e-a16b-cc870410b20c","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":202,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"92b06809-5c42-471f-b759-11935d8e04af","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":202,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"b00a796d-eb76-43fc-9284-944ed0548fa1","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":202,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"3481c8c1-e2d8-4fcd-a54d-919ec38483f3","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":202,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"1db72afe-eb5d-4f90-90da-fde0a5f81d55","block_type":"box","text":"performance.","page_number":202,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"01852f28-ab95-400e-b99e-5cef7202c520","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":202,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"f0c970c3-3124-4eff-a591-54ef966eeace","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":202,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"974c37c8-ff36-4987-ac5c-8afbc4bfee6d","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":202,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"de6fdb2c-0b51-4761-888d-aad57a635736","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":202,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"98efc65f-326b-4ff3-afab-75818f73d700","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":202,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"0db29be1-9603-4319-ad9f-f1ef8bcf5f15","block_type":"box","text":"recruit and motivate.","page_number":202,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"0bb72970-6489-47d7-a55c-458adfa3c88b","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":202,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"d4831a5d-f236-4f9f-9c29-7f4be84e45e5","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":202,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"07a2f1ee-efca-46bb-b027-48fdd12c32b0","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":202,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"8fc9ce47-1760-438f-b8ae-82966c1f9b57","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":202,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"8f91de68-1ee7-408c-a07d-a02d05289078","block_type":"box","text":"arrangements include:","page_number":202,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"b57f39af-7375-47c9-9a8c-fe9e561e9f69","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"9cbff830-3659-43f4-a64b-f7d18f81fbd7","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":202,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"a6108f1b-67a9-4393-96ce-b4365c3ad5e8","block_type":"box","text":"the company’s size, sector and market.","page_number":202,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"35713778-7728-42ab-b2ee-a3dff694bddc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"13ce6e83-1ed2-422c-9af4-6767988a5003","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9956e8b6-56d7-4d6b-beaf-150de9ae654e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57bd9aef-d9b2-469d-9c45-0fc2345f571b","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"662d9426-e700-4fff-a018-613f05e253c1","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":203,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"c34364bd-da32-43ba-bd52-2f91209e0141","block_type":"box","text":"strategic objectives.","page_number":203,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"3812705c-a5ed-498f-9240-63bff19e0cf4","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"7bc68aa7-2f21-46fb-845c-e71c444b5b89","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":203,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"99dbe9c8-6716-4bff-8509-9a9936289145","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"7a30c75e-41e6-467d-8655-601e40d79330","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":203,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"ee071482-44b5-4455-bc20-294206e3f6a1","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":203,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"bed57e3f-79db-499d-83e0-9abe5dcf9326","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"855ecc7c-5573-4dcf-8e4a-5e7658b99661","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":203,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"ac86f782-1789-41b9-a732-dd55b33b6da0","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"f6f85121-8f45-4a1f-b936-84d8f186bfa2","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":203,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"692ab40e-a13d-46e7-af7b-b3c941e1e027","block_type":"box","text":"transparently.","page_number":203,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"a2806d2c-619a-42fb-851c-47e28c08f407","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"5da0c7f3-6612-4b09-855a-44422e4d7aa8","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":203,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"b7c53ef1-f726-48ce-8161-a42edbe7f9c3","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":203,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"5eca3226-2787-4195-8473-3d6402826265","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"58fb944a-6d1d-4963-9ca8-a0dd064672d0","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":203,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"a3c3c052-fed8-4535-948f-83adb77ce9a3","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"a156ebd3-4186-4cf2-8052-b8d4bb4d28e2","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":203,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"7e9514ef-bc05-4c54-ae5c-ef6d23028305","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":203,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"3762fca2-043b-4d11-aaa6-561068ab7d36","block_type":"box","text":"misconduct.","page_number":203,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"9a049c0c-d368-4472-8d24-bc11040cfd12","block_type":"box","text":"•","page_number":203,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"8d57c2c2-c3a3-4373-872e-cad744675cb2","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":203,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"b3658249-3db0-42cf-b9b2-cc9eb3168332","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":203,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"9469fc70-0c07-434e-af71-ef5bbfffd9c2","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":203,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"399e13ab-cc21-4bad-baf1-e57e9bb50f87","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":203,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"7845389e-3a09-44a6-a867-65ebc5db7b88","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":203,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"6acc53df-3fdb-4216-bfcf-f7b593ecf04b","block_type":"box","text":"committee, or the most senior independent director.","page_number":203,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"28c6215b-880d-42df-b532-39c4cba5cfa1","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":203,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"ee9a7de4-813a-40fe-9551-24f4271d8ef7","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":203,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"752d5d35-dbd3-44b6-ba6b-8b04d2fb3763","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":203,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"ddd5b9df-199b-46ec-8c17-90bfae7bcca9","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":203,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"dbfaa45f-7c70-474c-803d-4da2703927eb","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":203,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"a1331eb3-301c-4d2d-b572-a1ad483cade6","block_type":"box","text":"CAPITAL STRUCTURE","page_number":203,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"8430a608-d9a9-452a-be58-70ed3d71e082","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":203,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"da1f01d6-06da-4c8a-af88-d7e113cf33ec","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":203,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"a776480d-2ede-4c78-80e7-825cebb406f3","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":203,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"df67012f-f92d-4214-9210-fbbd78ede428","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":203,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"43c90dec-78cc-4d75-b8fc-3e768ca6b5e3","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":203,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"4338e0f5-efa0-4a75-8134-57a2066bdfd7","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":203,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"8f664664-f80f-47f5-817e-a77a6cc0cfc3","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":203,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"2ae11cf7-311e-4ec8-818d-7beea7c5af57","block_type":"box","text":"Share issuance","page_number":203,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"5ef5ad98-0c52-4f45-8d61-d7b80aebdb27","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":203,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"76cf161d-1b3a-4c31-a460-97c70bd21e69","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":203,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"3e788a96-8f07-4231-a56f-25fd9a812e0a","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":203,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"8220ad3d-0359-4455-9e0e-c38fbfc1966e","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":203,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"321373f1-e2da-49b5-a743-5860aea3fbc2","block_type":"box","text":"market environment.","page_number":203,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"c1789d45-9e67-4c66-b333-89315021ca28","block_type":"box","text":"Share buybacks","page_number":203,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"ab3dca7a-ceb3-4dc9-8dda-1c8fd7162f90","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":203,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"72e3f8d5-764a-4d6d-8d02-d4d11b0cd03e","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":203,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"aa1deb6e-5cce-4cd6-88e2-ba2a18dfc764","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":203,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"ca57cbdd-50ec-4ac4-96c0-69bf4c89d01d","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":203,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"27cc1e00-9a2e-430d-bb1d-c30cc7ec3a11","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":203,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"ee2f5a3b-7663-4d3b-a915-06d282c6efed","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":203,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"94c3fbdb-40a1-46b1-9c4e-0d475053fe95","block_type":"box","text":"of the company and the market environment.","page_number":203,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"7a7a1367-2853-4489-b6b4-ed9a86111102","block_type":"box","text":"Dividends","page_number":203,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"4ba41b29-7a8e-40a4-a953-4c536624e427","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":203,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"544ae489-1e18-4dce-91f8-432698fe5747","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":203,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"59906404-c1c6-4c25-a6da-fc0b348647cb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d6bf5217-2878-41da-b7fc-5e3a70e3ae94","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":203,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"211d5596-095b-4900-8ddc-cdc95d4bd67d","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28d77659-35ad-4b97-b845-239341c5c78b","block_type":"box","text":"Differentiated voting rights","page_number":204,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"737e271f-11c4-40f8-a672-2cc8b049b27f","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":204,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"351a369b-c0c6-4f3e-a2f6-218ea668b48a","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":204,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"d965bf49-2a60-4719-978e-af4e33740d57","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":204,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"8c331552-9322-4f1a-8a0e-52562cc6c7c9","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":204,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"8741139e-fbaa-4924-b15d-2e4daac6c978","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":204,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"ea247d85-2156-4511-a70c-f75e0cb2ab8f","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":204,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"db2ef758-2aa2-440d-8a5b-9519c1c386cb","block_type":"box","text":"analyses of proposals.","page_number":204,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"68f30880-bc87-41ca-a83e-1cb9b20a67a2","block_type":"box","text":"Mergers and acquisitions","page_number":204,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"bc20da5e-9554-4f5f-83e1-9be19fd740b3","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":204,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"c8c434f5-d882-4a4e-9bd3-72965b21f01e","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":204,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"3905df12-8692-4572-acf8-090c8030ca64","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":204,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"26c0b740-869e-4cc5-a085-2b491dd08400","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":204,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"d5489fbf-5ba8-47d5-ad0d-0997a9eb8b20","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":204,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"d75fa63b-167c-4bf6-92ba-48689ffe3c49","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":204,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"61e3871a-7b1a-4494-8aa3-c367852d98ea","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":204,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"80336b65-53f0-474e-92d5-83fd378787de","block_type":"box","text":"Anti-takeover defenses","page_number":204,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"415d014e-3d75-47ea-b25c-4a446963e6e2","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":204,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"d3ca265c-7982-4743-8399-9cdb7e6b88aa","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":204,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"33c1290e-5e5f-4f4f-836a-0f35c375eaf9","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":204,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"19d85660-03b0-4ba6-92f5-1fbaa6e0adc7","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":204,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"ecffbd9f-60bf-4541-9391-7a316352a727","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":204,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"f14eec13-9402-475c-b886-65ea4f1211cc","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":204,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"637526c9-abc9-4df5-8bbf-16bcfd091106","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":204,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"5740b9ad-6629-4589-abc0-87ccdcc5e855","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":204,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"73ac80aa-8354-4c31-bbdb-03482d4bf7d1","block_type":"box","text":"Shareholder activism","page_number":204,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"a2a03f34-19e1-497c-b04c-da29d2a2783d","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":204,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"8291e1f4-1dd6-42f8-8d32-b4ec981b4bcc","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":204,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"6ad8cfef-4c98-44bb-84e8-0d55ffe0b5b9","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":204,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"25fc42fb-de6d-49d5-a94c-2c6f8a4a246d","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":204,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"531cda76-e7f3-47ea-a6a5-ee56142f37a6","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":204,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"360bfee4-d495-485f-a751-6e30355f814b","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":204,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"67111d02-6f78-4905-9235-c92ca41f8a8f","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":204,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"e669010b-0eb6-4969-bccb-9732f2261361","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":204,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"497a46f6-ca09-42d3-9ec6-636079e4d5db","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":204,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"6ef23088-ceb4-45c2-9926-2afa63e94784","block_type":"box","text":"protecting shareholders’ interests.","page_number":204,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"b03b27d6-90d0-4262-8a33-60a86c70ee71","block_type":"box","text":"Significant shareholders and related party transactions","page_number":204,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"caf45e43-b4a1-4043-9413-06251adedee8","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":204,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"e8b774ea-7fe9-45d6-bbfc-f80d92ccdcd9","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":204,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"1ae05074-c850-4c44-9e38-a86e330edb9b","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":204,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"7b588cd1-f520-48c4-be0b-d25374d1158e","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":204,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"be72cd6f-8e82-4f77-8d9d-ec7b842d3124","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":204,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"a133ce95-9496-4e18-aa5f-8e40e9c58617","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":204,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"1f5e9f20-9e98-4558-82ca-8555693d6560","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":204,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"6a1cb918-5b2e-4376-89dd-d925b22015a8","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":204,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"ba4eabae-42ba-42db-965a-30aba177ca79","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":204,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"8e88ec65-7ad1-4946-b6dd-4f252aaf92f7","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":204,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"044c755d-06fa-4c57-bb62-82625aa682f3","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":204,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"e7f078a9-ff8a-429b-b3a2-97429532d5b8","block_type":"box","text":"audit.","page_number":204,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"09820811-266e-48b2-8c59-6d6a957d990f","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":204,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"0f62cf8b-f2ee-4b51-96a7-0dff9f728ecc","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":204,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"43b9583c-c5e0-4946-8196-e2298876ddc2","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":204,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"6932244d-8d0b-42e5-99dd-82aa0ad89ac1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b4dedbb8-dd67-4970-9068-396733aae849","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9748c447-0de7-4715-b04c-90670fc255dd","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dfb8cae3-28c6-4705-b579-ea923db22b48","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":205,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"f17fef63-9478-4e8d-bec5-3a030c3ab323","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":205,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"6e5b62e5-fc44-4cc6-859b-9bca2e7c6b0a","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":205,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"bd02cca5-3850-4bff-918e-38ea6552f717","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":205,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"dc017565-aa3b-4f81-966c-5972a01a71d4","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":205,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"90fa5c78-68c7-40c8-ac88-700203cc364c","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":205,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"a2e934b5-4e94-490b-b399-0842a18da83a","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":205,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"0277052c-75ca-4ff9-b2c7-00cbfe618b95","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":205,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"a68ea290-fcdd-4730-909e-d1cabdc3db0a","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":205,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"173bab05-c916-4214-8ec2-ca1b70fce331","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":205,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"3e513248-ab3b-41ad-b423-01989dc55501","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":205,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"4fd9274a-6617-43a4-9679-93814d3926f8","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":205,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"c711da5b-3daa-49c5-ace6-cd1fc0915464","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":205,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"84a2af12-c33d-4db9-9626-37bf6cb7555e","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":205,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"bd7aedbb-3a0b-4f61-8770-7fbee39a097a","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":205,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"afca86de-de72-4036-9b7a-0a46238800c4","block_type":"box","text":"9","page_number":205,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"8e4bf8fe-cba6-444e-9ed6-564db49058c1","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":205,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"4b939eae-7cce-47d6-9530-02bf2d4e8fd3","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":205,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"3fcb860f-04f9-42e0-9929-f0e9bcdfe4d2","block_type":"box","text":"standards specified by policy makers.","page_number":205,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"b69ef27a-a468-49b3-92bf-236a361b0f23","block_type":"box","text":"10","page_number":205,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"aa21b471-513f-4358-8601-5b9637e2e699","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":205,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"5132a764-16f5-4ec8-ae15-452167a39fa4","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":205,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"d8829473-503f-4c23-a8be-44608bfc4627","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":205,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"9fdda0e5-13af-48c2-a56b-a034490c9f0b","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":205,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"c29fc0f2-895f-4162-b58c-0f3c827148f3","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":205,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"59c03826-f4be-4921-8b30-83059c90ebcd","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":205,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"f9f20021-1988-4f46-9a57-6da7ba0d74cf","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":205,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"59e37f16-fb55-4162-a6de-33113de0163d","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":205,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"56187e2f-2024-466f-857f-89d6d414047e","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":205,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"cf4122d3-bf9d-4711-945d-f4e348d95909","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":205,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"e1c25ccf-7591-4cb8-946c-950902afade3","block_type":"box","text":"remained independent.","page_number":205,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"60807440-9a4f-40db-9afa-f07b48763666","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":205,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"f9ab6e75-d2a6-4f88-97e9-306f7590a67e","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":205,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"33758953-5f42-4f9d-bf1e-a09b3f60d0f6","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":205,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"af25c407-f354-4b91-a530-114d27046798","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":205,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"9bd0da66-bc1e-4829-8441-5b8c444e506f","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":205,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"9edefcf3-a15b-4593-958d-58af805b8ab3","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":205,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"f753cdbb-e1a3-408d-bd07-8e07dcf24081","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":205,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"1ebe0ad7-e365-4bff-87e2-44e843b61ce8","block_type":"box","text":"General shareholder meetings","page_number":205,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"efe560b2-3052-4539-86b8-1d564d35215f","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":205,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"e016ebd0-2f77-44eb-b0c5-f14cd7ba7b52","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":205,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"0a4e098f-bd79-4049-baa1-58efc5e84549","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":205,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"9b251967-ffdc-4b37-93ee-c178beec12a8","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":205,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"9810856d-b9f1-4225-9b50-d1af2c8e2585","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":205,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"03543cb8-271a-4305-8d7f-f719cef31215","block_type":"box","text":"an in-person meeting.","page_number":205,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"85ec958f-9417-417c-9ee5-f4aa61b246b7","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":205,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"ff43094c-b63d-428f-b13a-82237a320b3f","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":205,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"33025985-ba4a-41e9-bfc7-d53ebadbd1e9","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":205,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"f9b79abe-bb43-4d96-b75f-2b54d3db27ee","block_type":"box","text":"participation.","page_number":205,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"ea8f0654-4a19-45a4-9d50-ac4905ed4e76","block_type":"box","text":"9","page_number":205,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"db082ed6-1574-47b0-92e3-96f81ca6f68d","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":205,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"4974c8a5-98ee-454b-8e36-294dc5ea9ef8","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":205,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"6040b0fb-1897-4f8d-9f31-fe470cb5268b","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":205,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"a13c9ed6-31a5-410a-98f1-c40c21fa205a","block_type":"box","text":"Disclosures.”","page_number":205,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"200523ed-f2b5-4062-8179-7b23b8d67755","block_type":"box","text":"10","page_number":205,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"53577f90-2fea-4b95-95d3-318a2e083739","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":205,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"2def13d2-7495-4d78-9b1b-4d811c5d0f14","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":205,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"5996108c-5c9a-4813-89cf-7ab937b01dd6","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":205,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"f38175bd-79db-410a-b66f-a230a1cc16ec","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a59d5d3c-4539-40f2-be2f-f22cf2c4154e","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4ab1c24b-bcf9-40db-881b-20d1de7e8750","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4247f0e6-863b-4f80-93d8-55fcd0f08ce6","block_type":"box","text":"Bylaw amendments","page_number":206,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"456b9ac7-5a8c-42f4-9996-26400cdc503e","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":206,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"d66cd19e-5458-47d4-a3a6-dd8b97204117","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":206,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"c608a2b0-7274-457c-bd15-9f9a61bed125","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":206,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"4e47423c-2ee5-476d-9684-342c35d074f7","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":206,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"115acb99-47a7-4a83-887e-6ebf33d7982f","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":206,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"f8c20105-4760-432b-85f8-de2c9e500b38","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":206,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"b24cfa4c-3e79-493c-a397-188613e0cd12","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":206,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"5fbb1969-9cfc-423e-a5c2-4deff9641ccf","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":206,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"911b439f-2d0b-4ef9-9005-2b7c0fe66dc1","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":206,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"4f208c47-89e0-4ec8-82a6-c0f133432114","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":206,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"eaa27c06-765c-44b2-9d21-f4d7df0f6d06","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":206,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"7139dd13-d6f5-4721-90e7-621ff2ddc177","block_type":"box","text":"nomination process.","page_number":206,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"690ad917-8b08-49bf-8e20-a1bbcf2dedd6","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":206,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"e0c8bd1e-bf52-4724-9f56-2d8564780de9","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":206,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"d02ffd9b-3289-405b-aaf7-b61f18345ff7","block_type":"box","text":"Change of domicile","page_number":206,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"051ccc0d-3aaf-4454-aad1-0724692ea1dd","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":206,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"6d9e9ce8-1a51-4561-86e2-7f264ea75324","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":206,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"76f9424b-b28e-4a06-afc5-142ec4deab6b","block_type":"box","text":"immaterial.","page_number":206,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"4b8a86e0-0a53-4a88-919f-912b29792dfe","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":206,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"888a1ea1-7bec-412b-8458-72a07fb94785","block_type":"box","text":"with our clients’ financial interests.","page_number":206,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"8d345d8c-219e-4ba6-9544-8559d1ecaa53","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":206,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"446f6ee8-ed77-48c8-9452-2844e8389777","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":206,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"c46b7fab-c283-48d8-bc74-292f15771d57","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":206,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"7bbe451d-d663-4eb6-8f3c-bfc12739b26b","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":206,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"23c26f83-fc31-45ed-bf72-7c2f8fecb039","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":206,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"e31ba310-0601-43c1-a057-c15f77f744c5","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":206,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"24489b42-d664-48c1-8bd1-8875f3d68e13","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":206,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"c6e18a41-7205-4213-bf30-404255394c87","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":206,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"1c8373ed-1d2c-412b-81f7-74342c265f5f","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":206,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"6ef2261a-2f93-46dc-84f0-621fc08ec16b","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":206,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"8b5448f5-d08d-4661-8f36-c785fe7b8999","block_type":"box","text":"relevant to a company’s business.","page_number":206,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"1d7699cf-e300-4307-855f-b70c6335609b","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":206,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"c06f95e0-3b9f-400f-bf84-84cb785f8c75","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":206,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"21718825-d11c-487d-8864-88b946a6086d","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":206,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"de60d354-8f52-4fab-90e3-04a93d3d078e","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":206,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"dd90a4a9-e838-4c37-9728-8d45239da8f1","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":206,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"ea280c0d-5a73-4ee2-96c9-b221e9e7875e","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":206,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"b0450af9-43d4-4008-a46c-14cf6d0110ff","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":206,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"27420ef3-f47c-4ce4-b441-c9f1044eddbf","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":206,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"b1ee6ce7-a532-4347-a592-2b87956d5760","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":206,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"772f05d9-3451-475f-a841-dc3c0c21addf","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":206,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"0defed27-f28e-430b-984b-e7f86607bc65","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":206,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"4cd8ca6f-650d-45a1-92e7-fffbdb77fe7d","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":206,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"e6c43117-3213-4f93-8e69-74cdbf0d11cb","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":206,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"a3c4c30d-e102-4d9c-9edb-4dc123095d23","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":206,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"0521bd5d-9799-4cbb-9f60-329b5c9ccf8a","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":206,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"9bf9764f-a436-4c0c-9387-b01a3f0396a2","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":206,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"1b966fb2-4d5e-4408-8a72-704280149dec","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":206,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"e1f8c941-97f1-46a2-9973-7384d3c2f692","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":206,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"07e11c97-a2cb-46e2-ba47-e3f7f82b70c9","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":206,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"87fe7cd9-1537-4867-94b3-75928aa69426","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":206,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"1d253dc5-0546-451e-999b-3c17ba32b288","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"823ffadd-e157-4e91-9671-d83bf0d58a02","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"489f91c3-0fea-4baf-88f2-78b0077a5a42","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"63800590-74bb-405c-975c-c07dd15c7953","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":207,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"584e4d3a-b2b6-4ece-a1f9-6d136c4e966e","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":207,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"98e1fea2-488b-4531-95e6-2f7a9a5dd52c","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":207,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"43622f09-5d12-416f-a533-8e5761a08d3b","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":207,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"24d2a310-5476-4435-a5e7-7940e7fcd24d","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":207,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"45a8593f-ace1-4f09-acd9-60ce03a3109b","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":207,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"7e282c09-a191-450e-9784-af67f8fbec07","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":207,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"8f36136d-04fc-4721-9a16-158417ff63a4","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":207,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"8593fe94-69a7-4d83-b40f-29e438fee6da","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8ec41d4f-165a-4af8-9935-488709b6ffb6","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b9491fcd-099f-408d-aad9-9e94fb0f6df5","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3500ea9c-aa71-47ed-ae18-e4a2ad4bff50","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":208,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"6c693067-5b7b-4c3b-8b52-a3b33278c0ab","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":208,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"8454d770-09bd-410b-879e-81d4fc8a25d8","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":208,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"89c5600f-6769-4b35-9b5b-612c569c27ea","block_type":"box","text":"11","page_number":208,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"350787df-1046-400d-a961-2db51cf35b4b","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":208,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"520c240c-9066-48b9-bf66-89803c9cc1be","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":208,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"893e2ee5-ac3c-4624-a711-82893c18d431","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":208,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"b75e3ba2-db69-4a80-ab95-32d642703ecb","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":208,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"d50e35f1-fe38-4b0f-a04b-114a1eb5c083","block_type":"box","text":"regulatory requirements.","page_number":208,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"e573aca8-0c5c-4899-a347-c1d08f928f91","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":208,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"4efd86e1-8d78-4ace-b030-13768998daff","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":208,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"5a628a89-7e01-4022-b28e-fca70bd9396f","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":208,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"7240992e-0009-46af-b1d4-42b7d09349b2","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":208,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"6cf99277-4513-4ae4-bcc3-39ce86e2fefd","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":208,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"1679cfbf-98fd-4a71-bd6a-0dfaf8f01cc9","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":208,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"236e17d2-8b4f-4db5-9315-c1af3cbae1fb","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":208,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"5bcebae6-01b9-409a-a440-a9c26026b37c","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":208,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"d1e4facc-ebd9-4b8b-b9b3-0bad154a18cb","block_type":"box","text":"returns.","page_number":208,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"6f96e524-fd9f-48eb-b47e-ea15b593a2e6","block_type":"box","text":"KEY STAKEHOLDERS","page_number":208,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"c2180cc0-4454-4c4e-a7dd-f51df7b0684c","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":208,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"675ba619-9046-4a14-81a7-2be06e9f79ec","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":208,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"97fa4c6d-6e77-4d43-9bde-01b57513d186","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":208,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"fccbffbd-534f-4d79-a452-42fb33268e7d","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":208,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"8c7b2433-82a2-45c5-bbea-1f58312bdd90","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":208,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"a51bd4f5-329c-42e4-8ee6-84bba1060783","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":208,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"5a754c71-211f-4512-8dfa-eddea662f50f","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":208,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"438167e4-ab32-4029-9cbc-a9d3fbb6defe","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":208,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"f6568e55-648b-4eb7-a6f4-734a2ec002f2","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":208,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"eaa581c1-539d-4629-a305-df814c5bbdfd","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":208,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"40ff67e1-4ca8-4c43-a1d0-ad48212c0b42","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":208,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"a51cbc30-9e4c-4e10-8cef-ce87e118c807","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":208,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"f5f61c29-c429-43e2-92e6-226783d4c4eb","block_type":"box","text":"i.e.","page_number":208,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"447d89fa-6b7e-4212-abb4-011a37f6d08e","block_type":"box","text":", one in which global","page_number":208,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"89de71de-80ff-4590-ae92-a6b7b96b77f4","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":208,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"6fd1b4b1-a615-46d6-91b1-4f01b95593b2","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":208,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"9bd0b249-d0ee-41be-acb2-19ba0d4121e8","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":208,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"61070fa7-4f22-43f0-b041-a4678cd170e3","block_type":"box","text":"client.","page_number":208,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"4bdda1b6-41af-44b9-992f-862233a04111","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":208,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"979ed552-69ea-4d2b-986b-2a8ee06ef566","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":208,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"e36c9f04-611f-47a2-ad75-e7d598a764b7","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":208,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"1f9b8f11-e965-4c47-ba1b-618076bbe291","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":208,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"0c2d4bac-8413-436f-90ea-1583a010a4c1","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":208,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"77b66497-cd7a-4ab4-aab8-7681889ed919","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":208,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"8d1e804c-84f0-4201-8123-7f532a8414d3","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":208,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"26affca1-9409-4254-b21a-affba2389b08","block_type":"box","text":"1 and 2 emissions.","page_number":208,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"be6ffa82-b40c-470f-a759-108c46803e11","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":208,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"625e240c-db6d-487c-aab6-36e6a04b5a2c","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":208,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"f92e7e85-7e8c-49d1-8d14-bff3ea44af84","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":208,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"198fb9bd-e665-4dcf-847b-25cef6dc1e01","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":208,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"96481099-bd53-4a02-8604-986792ed1fef","block_type":"box","text":"11","page_number":208,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"94dce04a-2602-4d12-86cc-0be6c5713361","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":208,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"56f27c2d-7fac-4d27-9815-7075ff3d87af","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":208,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"23c1c590-fcce-48a9-adea-7a1de6b9a799","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":208,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"e092f740-2d6f-4d6a-93fb-0db6ca87a745","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":208,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"637fa9f0-8048-450c-b71c-c697b354fda5","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":208,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"5ec27c24-4ae6-47f6-b191-ada8705e2e07","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":208,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"0fd55151-b5df-4da4-b9aa-4af16f13936d","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":208,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"33ed32ed-014d-4406-afb7-49a7b81f6337","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":208,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"d54c7bdb-cfc0-476a-b0a7-282573c8eeca","block_type":"box","text":"sound governance framework.","page_number":208,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"c2e06921-655c-45f9-89c8-6dec4855998e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"89dae4ce-afb5-4726-9fa4-721e5eedbaf1","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"1741ddf0-7223-441c-a6cb-b740991bfc9b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0859ad55-5b33-483d-a59e-8c20f55d17cc","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":209,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"ceafcfff-4d70-4c91-a9b9-0d93cdc7c88b","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":209,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"5645d8c3-2046-4c9b-a522-c247f957f06f","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":209,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"4061edcf-e781-46c9-811e-f1536d7196d9","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":209,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"14a65081-806e-4dd5-ac3e-42310afcb0f0","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":209,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"c760128d-59a3-41b7-86ea-32742766944d","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":209,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"2c4b5207-05cf-4c60-8210-0337412c1f90","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"27f6658c-0bf2-4370-a8c0-882e78ca46e8","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8f26fbe5-724c-480e-b452-1a16855c9289","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2de49313-1bcb-4391-8de5-05096fba2a22","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":210,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"96c60915-da72-422b-9b98-9aad5984699f","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":210,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"43cef4ea-2892-4667-a27b-a53dcd56f5e9","block_type":"box","text":"Oversight","page_number":210,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"602fa0a1-fa7b-4e98-9780-622c7d17f187","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":210,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"7c41eee8-62e6-417b-ab03-65df81127884","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":210,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"2ce10bb8-2cec-4ecd-b7a0-c1744d928d46","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":210,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"f3eedda9-a2bf-4ae3-adb2-8f539cd5579d","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"feaf5724-e884-497d-a947-aff37b443cac","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":210,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"0bc5017c-1497-4da1-876d-7009ddd81328","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":210,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"06d2ad64-0cfa-4778-b8b6-0b997aeddb01","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":210,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"3913adb7-d5a0-4c93-ac12-b2d9c5f821ea","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":210,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"63f175ca-31e1-48fb-b731-ef438a30ad32","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":210,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"f98e5bbd-ef77-4ec0-989d-74a014448e91","block_type":"box","text":"relevant active equity investors.","page_number":210,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"e6cf8111-22e1-4c7a-9f87-e13b01bf9913","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":210,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"d53058e6-cc3f-4b20-8ce8-47171c9387a8","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":210,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"7c4fb5e7-43c9-4239-8c10-3da2cd982f4a","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":210,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"9bb66e7b-abda-4457-8e3a-cd2dc03d4fed","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":210,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"f32f525d-fde1-4b5e-818c-d4e0a8f6b4db","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":210,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"185a716a-1cf3-45be-b094-f3e5b87065d9","block_type":"box","text":"third-party vote services providers” below).","page_number":210,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"e19f01e7-045e-4365-8207-60188e2afcfe","block_type":"box","text":"Voting guidelines and vote execution","page_number":210,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"f49448b9-ca46-420a-8692-db0cacf95f1b","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":210,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"ae3c3bc5-b3f9-466b-bd79-3b94db02662a","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":210,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"4a320c5f-ef2b-46b8-875c-759117606ade","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":210,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"7c543e6e-0bda-4f53-9be4-5e8ebc3de6a7","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":210,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"5b83855c-a619-4971-bfa7-96a35e3967e8","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":210,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"d54f6915-a2d1-4280-8e3c-26ebadb761b0","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":210,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"97e1ba7b-39c6-49ba-b37f-48d2dc3cd66d","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":210,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"2ac6b0cb-e25f-4e51-8113-ba651a281489","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":210,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"9669556a-7834-4758-a194-af303aef0374","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":210,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"2ebb336e-ca61-44c7-ab73-f30efac30b39","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":210,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"860577ba-33fb-475f-bf8b-da29ac131c28","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":210,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"9ad6ea78-a531-462a-beb6-19f70c448152","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":210,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"0ccc3e10-2084-482e-91e7-b87e732b61f6","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":210,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"772c8d75-70da-44ce-bf0c-e673fb95334c","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":210,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"cfe2309f-7096-47c1-9076-2f861cb51337","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":210,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"1cbc7326-b35d-44cc-ae17-d162a4334f9c","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":210,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"00c13e4d-f66b-4fce-be44-f3899a1d932b","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":210,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"b27f5f04-1d8b-4a39-b0fe-ff65d06dd462","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":210,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"b0a79d94-91cb-44c9-8aab-74222c66f125","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":210,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"ea7d6153-cd0a-4640-9ce4-75b19cabeead","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":210,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"1709250e-ac39-4e82-b081-16f88f1669cd","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":210,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"c0f75896-2933-4978-899b-e4447856e37f","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":210,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"90544e16-8c70-47d0-b0b7-6a0d5f134bca","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":210,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"3ecdb932-0e4f-421c-a124-a7f51ec374c8","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":210,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"2f8c4d1f-8b78-40a9-97e4-2d472811713f","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":210,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"2bd5f7a6-2783-4e4b-ba8e-9e79cede2460","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":210,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"48960951-b1e9-444b-9d7a-902a22482b1c","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":210,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"67d5d270-8bd4-4434-985a-db2656d03ad5","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":210,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"6c08bae0-3712-4ef4-ae2e-c40f515789e2","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":210,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"5a2d9601-1170-4c77-8d5e-33e4f7d03d32","block_type":"box","text":"Voting Choice","page_number":210,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"da5a1741-8fbe-4500-9054-fc510928742e","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":210,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"fddf3fad-f70d-42bd-93c7-6e2400fecc2f","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":210,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"f5011f99-1903-4b6f-a49c-df92cf4b54b0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b569c5fb-aa94-4577-9df0-dbdcc530903a","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"83f7a2ac-3aea-4dad-8ceb-506506c852fe","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d04b497f-eaee-4feb-b1b7-7e84a1aa95e2","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":211,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"9891228c-eac8-41e0-b6e8-1203edc1c411","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":211,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"84041ab5-23fd-4c98-b014-fe92629a360f","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":211,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"d61758b8-1719-4b23-9238-c05d64f67546","block_type":"box","text":"strategies.","page_number":211,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"6e3822ae-d4c0-4b86-ab68-5561e395217c","block_type":"box","text":"12","page_number":211,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"4cf28a7c-398b-4ba9-9135-93bccb1fd4fe","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":211,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"7997404a-94ce-425f-a73c-aff56671afe2","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":211,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"2fe70984-0c86-4b1c-9459-2beacf13cfa7","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":211,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"19fb7c15-34f7-40f9-8ff2-3d020cabbfda","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":211,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"ed8c30a1-d237-4afa-b3b9-8f7319f23405","block_type":"box","text":"13","page_number":211,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"418399db-6fdc-4832-b3b3-4b49963532dd","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":211,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"140113f4-522b-47b8-8733-7fc913d8275b","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":211,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"21a32dda-2042-4620-a20e-211430ef6c2e","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":211,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"a93973c8-cc4d-4357-adc1-dd16fd8db9ec","block_type":"box","text":"leverages its online platform to supply research and support voting, record keeping, and reporting processes. We","page_number":211,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"62e3648a-044d-449d-942c-743d25fe9b8d","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is important to note that, although","page_number":211,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"f89c657e-0233-47f1-8ce3-b544ea7d66ac","block_type":"box","text":"proxy research firms provide important data and analysis, BAIS does not rely solely on their information or follow their","page_number":211,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"852822f3-788c-4ee5-a147-2cf63a63378c","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":211,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"3658fbf9-ced2-466a-8e85-ac62fd607e13","block_type":"box","text":"our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":211,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"dc32bf0c-3858-4790-9e3c-681c928af515","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":211,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"bddc5405-8dfe-429a-a495-d1030e3e1f5d","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":211,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"e8d05406-bda1-4fa3-9f35-495168f64e6d","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":211,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"10ccb8e6-6b2d-493f-9d3a-97232f09df24","block_type":"box","text":"necessary to the relevant portfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":211,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"5c0985ce-8dc9-4e4c-aec7-28c02ad8c98a","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":211,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"b92a495a-390c-4e9c-97d9-9b388ac823b0","block_type":"box","text":"monitor securities filings, research reports, company announcements, and direct communications from companies to","page_number":211,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"bdd88a7c-efe3-438c-aec3-1a876f822755","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":211,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"39fc9281-c54d-4c1f-8546-00a96bdf1e44","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are meeting our","page_number":211,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"87734e67-f0c4-45fa-93e2-49bda2d8e3ff","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":211,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"cd909809-a58c-421a-b7e8-0847f2e6e518","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":211,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"3198dc25-10f8-4c0e-8f72-0ea5bfbe6981","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":211,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"595f9ec9-ad04-4430-b09a-f00059a05ee6","block_type":"box","text":"policies.","page_number":211,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"d6b69828-3d07-4cdc-accf-1faff3dba425","block_type":"box","text":"Conflicts management policies and procedures","page_number":211,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"e76b8ce2-a085-49eb-86c8-32a8519b09e0","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting activity.","page_number":211,"box":{"x":102,"y":510,"width":801,"height":11}},{"id":"26fa566c-7ff9-4f8d-9344-86bd85144709","block_type":"box","text":"Such influence might stem from any relationship between the investee company (or any shareholder proponent or","page_number":211,"box":{"x":69,"y":525,"width":809,"height":11}},{"id":"dd481673-5412-4ba0-b0f5-4cc35a2a3da6","block_type":"box","text":"dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or BlackRock employees.","page_number":211,"box":{"x":69,"y":539,"width":831,"height":12}},{"id":"e67223ce-ebc6-42ed-8682-bac1ddceee46","block_type":"box","text":"The following are examples of sources of perceived or potential conflicts of 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outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":214,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"2454beb8-3f18-47be-a90b-0ef6e32ce9e8","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":214,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"d77deaa3-c8f4-4003-b27b-394fbaececc1","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":214,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"a1fc4893-8ef9-45b6-933d-8b5f3c6dbff8","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":214,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"7ec37464-b95f-45bd-94f9-878febea8e5c","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":214,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"a9a77359-b90c-4dab-a23e-e5357d57630f","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":214,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"28bb228c-28d8-43b0-8ffd-ee78ff0a7fa2","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":214,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"eaf20b3b-ec94-4b5d-af06-b6d0d1920f36","block_type":"box","text":"Appendix A.","page_number":214,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"9f0a3d8d-7a53-4191-bb84-ec270e95e4d2","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":214,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"c5c7dac3-d53d-4a4c-99e0-90b6091d10e5","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":214,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"c6e68ab4-359a-4910-bb62-e2391e0a420a","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":214,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"fdad7ac2-a992-4d97-bc6a-90945f905405","block_type":"box","text":"Conflicts Management","page_number":214,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"8f1cd9fe-5837-4e61-974f-6eda97ee8645","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":214,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"4f3dd2c8-6cb8-4953-89e3-6e5ddf12d07d","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":214,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"e4768e49-6f17-4f51-8111-7bd270e4574f","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":214,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"a745b5af-912c-435d-8c5e-7f785a3b6081","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":214,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"2772b606-c246-46d0-93b9-3f8e1aa8117e","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":214,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"1dd5c3e6-af52-4393-81e9-ca33f7b32110","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":214,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"ca888572-5d63-4079-a038-77acf7fad15a","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":214,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"09b956c8-2198-4eb8-a5eb-ff897fa5cb3b","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":214,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"98925fdb-748f-4439-8d21-ffd590c69d7f","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":214,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"37e6e4f3-da92-4090-a180-697a73a7ccc9","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":214,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"ca33bbaa-19d9-48d7-b7b1-5ab1905c01ed","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":214,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"1f753c3d-c1bc-4c5c-aef6-cdb5892fb587","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":214,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"95227df1-c194-4855-b9e5-306bb88e09e5","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":214,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"f4f927cb-8108-4e2c-a682-7cd7ab2dcd4e","block_type":"box","text":"connection with proxy voting.","page_number":214,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"2db8268f-6419-4fc7-82e7-0bb323df8912","block_type":"box","text":"Reports to the Board","page_number":214,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"1b23a63c-5237-4302-b2f2-3066b205fbf0","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":214,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"ea313474-504c-4fdb-9e99-0a0848d68a2a","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":214,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"cc24a069-1698-421a-b25e-0db8fb9277b6","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":214,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"3c5f2939-2fa6-47fb-a4b3-6dc850fc6c98","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":214,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"fb200893-55f4-40d2-863e-52a2ed187df6","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":214,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"7a2bbb39-f004-4daf-8348-e82c040aeede","block_type":"box","text":"been 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Through stewardship, we assess how companies are creating long-term financial","page_number":218,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"e055fa18-9aba-458f-84be-06a3079f3838","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":218,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"496826ef-7450-4e2c-9867-89ddd8474f25","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":218,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"321dd830-cdc4-4d73-acf8-a7d780233aef","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":218,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"a22b157c-1dfa-47a1-989b-3bf25a18a3bf","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":218,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"863abdfe-09e4-4f85-9ab7-13baa6903697","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":218,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"39696787-1714-4848-8c63-d02f10f0cd5b","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":218,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"ea43bcdf-9fc6-4686-a32e-eaefa76dfae5","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":218,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"f24036dd-ea30-4043-8965-5b21132922a5","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":218,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"5ddacb02-6562-47bc-a65a-6c0b8bd285b7","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":218,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"cf9f27f3-bcf4-4c46-aa30-2e7867594eb9","block_type":"box","text":"1","page_number":218,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"99b5099f-573f-4bdd-99ee-c59a89d5fb38","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":218,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"0ddef9a6-3059-42d2-a895-ceb14d32bdb5","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":218,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"b06a5c21-4fca-4ffe-8ca1-a14bed523abd","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":218,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"05c43463-9d80-4bec-b5ca-15da0c58e8d9","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":218,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"3f6f228c-9ab0-49d8-adba-2ab9f7159c11","block_type":"box","text":"2","page_number":218,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"b5975a07-a8bc-436b-a4d3-8f5c622528a6","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":218,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"471367fe-ec59-428e-b948-0e110eaa357c","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":218,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"02ebd59e-e454-4d91-b252-1e25172ee6f5","block_type":"box","text":"material business risk or opportunity.","page_number":218,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"3165cc40-4318-4366-81ff-79ac05b269a6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3fc7c253-dc10-4bdc-a52c-d1dd24223d67","block_type":"box","text":"Global Principles | 3","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"36b5b81c-22f8-4803-8ef9-84ef6cd504a5","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3182ec46-511d-495a-9443-8ee98136f658","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":219,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"5414c94c-baf5-4a1d-84f2-a65bfcd2755b","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":219,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"202ef9c9-f1c2-4d0e-b40f-4de9503f13ee","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":219,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"f280dc76-35d8-4581-aea2-fc2aa9bceb50","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":219,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"4f0dbaa2-6b3c-4d0a-b1f0-cc47a350d791","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":219,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"98557631-7a05-4999-a9b0-8b0c36cb5673","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-party research,","page_number":219,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"680aec6c-0d7b-4b98-b551-3f86774b977d","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":219,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"e31c3d02-b67c-416f-8c8b-4727b898a860","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at companies","page_number":219,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"ed57314e-c9c5-4db2-afdd-d6181fe83d85","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":219,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"c2cff241-5612-4906-80e3-1201372166fc","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":219,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"d3dff73a-77f1-41f6-bebc-cc169d77e45f","block_type":"box","text":"support the election of directors or other management proposals, or we might not support management’s voting","page_number":219,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"dac0a667-0e25-42ca-b125-25d237e20387","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":219,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"e365175d-75e6-4fc3-97d3-794b8cbae1ff","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":219,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"ff1d7c04-52f4-47bd-b1ef-b630bce2e26f","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights attached","page_number":219,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"acf7e105-2e28-4c81-af0b-a68dbbfaddc7","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":219,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"32b0a91d-3b05-4395-a7ea-0c7c5f7dd6c3","block_type":"box","text":"3","page_number":219,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"2cd44863-3ee9-4eca-aca5-c3bf435704b4","block_type":"box","text":"For example, in","page_number":219,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"38459fdd-a9cf-4380-8f85-c98d6583096e","block_type":"box","text":"most markets, shareholders have the right to:","page_number":219,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"523c0f62-be18-4e02-912b-92e3c89d6dac","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"00f0d957-ab2f-4e5f-8825-729befe47156","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":219,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"6056022e-fd6d-4698-aafb-4baefc53f302","block_type":"box","text":"charter or bylaws.","page_number":219,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"5cba51d3-5638-447f-be8c-6c2f3bd8df0d","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"76dbad41-f632-4326-8043-eb63734f0a45","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":219,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"d046e2f7-dd04-43f5-a1be-40d63a0785fe","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":219,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"fde4eb17-e0a9-4cbe-a3d0-60aacbc117f4","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"a863423d-ab43-43f4-8107-f715decc162e","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":219,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"1b8114e7-5339-40d0-baa5-f2b8effc802a","block_type":"box","text":"are material — to make informed decisions.","page_number":219,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"adf5dee8-b9e9-48ae-b374-66fadbaa3805","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":219,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"caffb2e2-c482-4181-b38b-cad7856b15c5","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that contribute to a","page_number":219,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"15a8a0b4-17a9-445e-9eb0-f25d492c0852","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":219,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"46973946-75d8-4f27-a681-05a38b8b15fd","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":219,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"25bc78bf-6024-487d-a481-497d38fc901e","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"47a32dfb-a955-4a08-ab44-d5a34d1baea7","block_type":"box","text":"Boards and directors","page_number":219,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"883a15f4-e001-4133-9055-fb424cae48ac","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"e676dc75-fb61-440f-9768-d98766cb97c4","block_type":"box","text":"Auditors and audit-related issues","page_number":219,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"8b637f6f-5cac-4735-99ef-f65021f202ce","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"86d905c2-d4f3-43e4-a222-5091327dd128","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":219,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"94a4e566-37e0-4ead-930c-4e66695e6b84","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"def5dd0e-ba3c-42e2-96a9-b6148498787d","block_type":"box","text":"Executive compensation","page_number":219,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"7c50d3ad-aeaa-4d59-91b3-10f75632e775","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"99fab50d-a169-45dd-a979-121d4f76428f","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":219,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"c2a5d555-2a2b-4210-b3b8-96ddd9091add","block_type":"box","text":"•","page_number":219,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"7a924ae8-957d-42f9-bdc7-c719a890852a","block_type":"box","text":"Shareholder proposals","page_number":219,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"9b1dba15-f85b-4538-b178-b16cc56f162a","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":219,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"84aa7cf6-8184-44df-b075-ec5a59c86171","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":219,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"62091ea6-e1e8-40e6-ab39-aacd5de537cb","block_type":"box","text":"which companies operate.","page_number":219,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"88d40953-00d6-4981-900c-ab1a2f455608","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":219,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"e1a15045-4c87-4d4f-aa50-e239f8dc5a42","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":219,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"3e0565b2-8e5d-49f2-a6fd-af45ad026c83","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":219,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"bb166203-d675-43fd-8b7b-795d782beec2","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":219,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"f2f836bb-8598-4daf-8a79-6b26a646d8e0","block_type":"box","text":"4","page_number":219,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"bfc76cff-5573-4545-89bb-90623791d420","block_type":"box","text":"3","page_number":219,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"fdce0c94-1120-4593-8907-01680a8c2fb0","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":219,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"c2651574-da23-4361-b7c6-59317a10a021","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":219,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"d5b39661-b8cf-4cc3-8cc7-9f2362e2843d","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":219,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"cbaffd93-a93b-4bd6-9e95-43df85a8f6a6","block_type":"box","text":"4","page_number":219,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"aa4d3568-a656-47d7-b35e-459122b19477","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":219,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"5413b08c-e26d-4341-9ca0-ac1a46645c86","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":219,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"5dbdb4bf-1f43-4467-8693-030393eaa6cd","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":219,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"a6e6078d-14f4-47f2-ad58-55bf92049233","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":219,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"24b63a26-be4b-446c-9eed-348e56d52ef2","block_type":"box","text":"guidelines.","page_number":219,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"7b9a8a45-c8d3-4371-bad0-493eb6645fb9","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e27d7ab1-1d09-4cee-95ca-380d95357dac","block_type":"box","text":"Global Principles | 4","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"c8a0230d-4e41-42c0-bd64-c5227d16c6a9","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f400961-342d-4746-b7c7-b43f1656a727","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":220,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"c2c6868a-2c02-453f-b645-2b0aac03e161","block_type":"box","text":"Oversight role of the board","page_number":220,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"8515e403-432f-4325-bcc6-cd497c978d9d","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":220,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"9bb13f5d-b5ec-43e5-9291-d113ea6e68e3","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":220,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"63d07496-ce13-47e1-8f7a-75e5a13a2893","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":220,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"0315c6cb-87b6-4f45-a830-8ebadcb7696b","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":220,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"5e042286-e205-4577-ba93-c2f5b24933e3","block_type":"box","text":"long-term financial performance.","page_number":220,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"42631c8f-d0cb-4e15-8547-c706610e8419","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":220,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"1915a4f2-b9d3-4a7b-b677-70cc6b263e78","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":220,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"132d1624-c88c-46eb-a0de-8dc479c626c3","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":220,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"69b8a196-6d0e-4172-87f9-ca9b72253d3e","block_type":"box","text":"the business environment in which a company is operating.","page_number":220,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"3c2b8b46-67cf-406f-bc55-b920149c9095","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":220,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"a7a1b6ea-b906-4b7f-8fc4-5b21a24bdce2","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":220,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"55228189-dbf6-4d53-be5d-2a1ffd542c84","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":220,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"a5158bd3-2f28-4a35-b06b-dea2429dac72","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":220,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"7572ada0-0b99-4b43-b55b-33ee1989d2e5","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":220,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"52d312ab-af74-4a47-84ba-8bd78f8f81dc","block_type":"box","text":"mitigating such risks.","page_number":220,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"24677234-812e-4477-9eec-06c9d5c18e41","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":220,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"2c53d882-52ba-417c-a9cd-b6193ccce6f4","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":220,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"b789b729-3a49-4f07-b78d-5e71968d4f68","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":220,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"d60de4fe-bbb9-46ed-93ba-a545b0a9f4cd","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":220,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"80306dba-ed5c-4ba2-b237-f49f02386fc4","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":220,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"f599bda2-b05f-46de-be97-13dee2fb30a4","block_type":"box","text":"strategy.","page_number":220,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"fc7ad470-8c1f-4341-b814-8acfd3ad6542","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":220,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"4f621504-39a2-4ccb-ba79-dbe1e5f989a8","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":220,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"b6bac0eb-28f3-4a89-a477-bfdf741983a1","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":220,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"9e423418-8771-4e52-ab29-0bbc57d83aa6","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":220,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"d1b3c306-4e75-4515-b1aa-33f596c16905","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":220,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"ba804850-5d27-4665-a9d1-190c538d464c","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":220,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"f6f153b3-8660-484e-9199-b859304a4dd0","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":220,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"6b010732-c08d-4c8a-bf2f-389b4e1e88b0","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":220,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"c9cce2cd-0cff-4ab2-9799-907adf2e757c","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":220,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"debedf5c-3777-49f4-99fe-9fc04060c79e","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":220,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"6a855a63-8ae4-4dc0-a8df-fc15076af523","block_type":"box","text":"Regular accountability through director elections","page_number":220,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"fc13a56b-f5ae-4c75-9b7c-3d79d163023b","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":220,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"c71835d3-1bf9-4d26-a58b-1caf444bc56d","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":220,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"f403c53e-a5c0-48c4-b8ef-91487cb36861","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":220,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"30569796-2e29-4a43-b234-230fda599044","block_type":"box","text":"5","page_number":220,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"4fc0071a-8706-45be-b418-3fda07b892c4","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":220,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"1cf69f88-a8fc-4ddd-99d9-2efa022f732b","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":220,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"d7bfadc7-bcff-4419-b8e8-305879ab10b2","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":220,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"13705c88-d9a6-4505-b81c-0d3e4c773eab","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":220,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"4b9455af-e600-4e65-b56b-6b56cf6a8441","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":220,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"91b4e781-c206-485a-8172-00d05e7425af","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":220,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"546d2093-39e5-4f97-93f2-3e6bb75c2e76","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":220,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"ace35deb-68e9-4741-b7ab-3d8a5213e384","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":220,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"dd51a154-4499-4e55-beae-36563487c637","block_type":"box","text":"5","page_number":220,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"197a80cd-11bd-414f-bc91-d356e7b78136","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":220,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"10dc9976-c3e8-47b0-a53b-ccb9401ce6a8","block_type":"box","text":"market regulation or voluntary best practice.","page_number":220,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"849e7cd9-4429-4111-810f-5ed8b513b97d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5fb82bae-304f-4149-a549-480358610b88","block_type":"box","text":"Global Principles | 5","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1fa39cae-aeda-46bc-b93b-fb06407bbe47","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bfc4f604-1cc3-4635-955c-12b0d92a3935","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":221,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"bf82a23c-7c84-48de-9b32-27cc5a496ba8","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":221,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"30dd8ca2-8676-4490-a981-9f9a7fdea3e4","block_type":"box","text":"recently.","page_number":221,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"291b4912-15ad-4ade-bd3a-52e77fdc3224","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":221,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"5635d962-6be8-4f81-b388-a6a0dbe3daf9","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":221,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"e79cc7e5-4169-4f64-a96a-767fc36f2748","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":221,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"a0c06677-587b-40d4-bdb7-fb8934955314","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":221,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"8b190704-67c5-4169-94ab-140c18b153b1","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":221,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"5c38b882-f61c-4edf-a02c-b8d08d38bd34","block_type":"box","text":"Director independence","page_number":221,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"b23410da-f408-4120-8668-79e2292d59f8","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":221,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"e082ce7a-4f44-4c5c-8f3e-4301b629c55d","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":221,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"04db6083-2ac9-4062-a0dd-91eb85d02ae5","block_type":"box","text":"6","page_number":221,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"dacbe83b-3c44-41bf-aa7c-fcd8ec0f7ced","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":221,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"f7bf7d0e-4c6d-4f86-9ce4-e9eb3f468e34","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":221,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"b0daab03-eabb-4c4d-8bf6-2ffc8264d67b","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":221,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"74d6612f-beb3-4f29-807c-a74f89e89843","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":221,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"2cfeacda-a372-4003-865a-baae0d113b08","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":221,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"473e0e33-7d3f-4593-b67e-d1494905eaad","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"44b2ff84-42ec-4ed5-9495-83f1ef5edc58","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":221,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"4c013bfb-8393-4ff1-9ecf-4abde8be2623","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"bd35e2d5-a5e0-4eb0-9ad4-7fa46531cb6c","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":221,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"553bf5ba-c516-4067-81ce-3ed90c569471","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"9f7d44f0-1836-4794-9a2b-c087ffedf2f5","block_type":"box","text":"Interlocking directorates","page_number":221,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"ce5faa0a-ff30-4ad9-95bf-368a2e9bcb3b","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"b63d2a70-c665-490f-8d32-533c6afff1f7","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":221,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"fcafa7bb-61b2-490d-b0e1-276ebb079759","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":221,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"5cf78475-58bd-4d28-96df-fbad26355395","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":221,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"13b50482-4c33-4e49-84e3-323b514a26a2","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":221,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"e66dca4d-f870-4269-a0bc-8caab2aea0a1","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":221,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"d617abe1-b5aa-4dff-b34a-84b64cae7029","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":221,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"de7fbb6a-9347-42a5-b8f3-d34b170a224b","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":221,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"0e5d573f-17a3-4a0b-82ad-b284420a0f1f","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":221,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"d7f21a73-2307-459f-b9eb-09683d59b858","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":221,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"96a18207-d2e3-4c94-8a7c-e1ac9268fad5","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":221,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"8fc8b14a-5779-46c4-80f8-19ce3e32aa32","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":221,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"9b5fe710-ea70-4277-8cc7-352f6cc13e1d","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":221,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"fb745cf7-b654-4ea0-977f-fe9f374cfe85","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":221,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"99505dfc-0360-48d4-92ec-38d45e0d4d5b","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":221,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"33b4bc98-71f9-4684-8e55-ad7daab41c0c","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":221,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"4c578f7a-f20c-452a-8a2b-6c2bb7c4ba68","block_type":"box","text":"Sufficient capacity","page_number":221,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"faaf507a-61b3-44e3-91c0-b5e85507f24c","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":221,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"833ea4ad-39e5-4558-b878-7f706c5dd465","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":221,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"4c26cd12-e4ef-4e65-a943-6fbf229f7c84","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":221,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"67b8cfe9-dc1d-47f7-a770-33761eb54bf6","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":221,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"984cabc6-46b2-45aa-8d5a-881de848ab13","block_type":"box","text":"Board composition","page_number":221,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"df747ba4-7a3c-4a46-acd8-2495d3c0687e","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":221,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"ee593c8e-939b-4f0f-a267-0aa99f40a548","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":221,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"1ac49adf-2036-497a-aa6f-615745e55b19","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":221,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"1d488196-9193-4761-86b5-c7d4e9dff937","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":221,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"a4f7415d-a1b1-42fd-8bcb-718e1f3e611b","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":221,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"790e7a7f-d4c6-4b47-8af9-341793c83bb0","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":221,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"7b7749df-ad2e-4506-b024-b0b0248574c1","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":221,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"5573c555-1e4f-436f-a4c9-34bbb81d1863","block_type":"box","text":"6","page_number":221,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"1cc2a101-7b37-4170-afe2-7cbc0006ab19","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":221,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"d5921f76-0ae7-4d90-8673-a4e44dae6e22","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":221,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"99c01e2c-eabb-452d-9b4e-be22142cce4a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"eda47fbd-687d-499e-808a-dead531180c1","block_type":"box","text":"Global Principles | 6","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"c33457bf-02e1-4a6b-9a61-dbfee765e0a5","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3439f315-7b3e-49b1-a9b1-585f951a1b04","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":222,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"69704342-c929-4972-9be7-3fb6145a014f","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":222,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"c5828784-b5ad-4059-883c-7ebe4604bff2","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":222,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"435d052a-2e15-42b4-8e9c-87e317224b1b","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":222,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"14e03828-e6c2-4518-b89f-60310afa2656","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":222,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"f51ba68e-ef87-4253-9006-7b38a6ea1775","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":222,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"a62a5998-084c-48f9-a740-b2802b363291","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":222,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"a768daa6-932b-40cd-a8eb-bace9dc9fb2d","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":222,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"d8af7504-d13e-4425-835c-ac7f69ebf25c","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":222,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"d7cd0d14-175d-445b-ac7e-70ddd2582753","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":222,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"99ff0b82-0728-46c9-bb29-04cfddad44b3","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":222,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"7f1a7fae-5b88-4933-9839-c0c59820f8d1","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":222,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"ae65aa75-e272-465e-b76b-b604ce2dd4df","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":222,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"2b164161-a6ab-485c-953a-941bc1689ee5","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":222,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"25cdfcdc-cc56-46f8-8275-92fe2c125a40","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":222,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"a53effa1-7b43-4de2-85f3-9b28ae52b4de","block_type":"box","text":"systems.","page_number":222,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"002c846d-0660-4a92-899a-2e1d88074f76","block_type":"box","text":"7","page_number":222,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"e8118861-3064-45f7-aa71-ecf6453743e8","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":222,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"3de411b7-5f8c-4c1c-96c4-7346e0ab6b28","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":222,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"65d64cfb-e342-4802-bd48-a7cb1676b641","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":222,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"ec9325b9-45f0-481e-a8ab-7ccf713ea204","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":222,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"06705fcf-68e0-43a4-875f-b732062d45bf","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":222,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"c535b5fa-5d49-4fca-9de5-994b8f8d85bf","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":222,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"53fda951-38d1-4b11-ad9d-2fbc3920396a","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":222,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"db375a6a-27e9-4cf6-b75c-a106a6690b0c","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":222,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"a5c9353c-0f41-4439-80eb-f3b44a731273","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":222,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"2bea3259-fcbc-4926-a46e-134dd617920e","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":222,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"45792cd0-6fd8-41dd-8eee-79618ad1b569","block_type":"box","text":"or internal audit function.","page_number":222,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"c79af591-2f6b-4d76-983d-c0d7ed2aa068","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":222,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"efc9351d-40fe-41a2-9ac8-270fa7d9f849","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":222,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"4e4b1ac4-a98d-4d6a-ba30-7a5f77a34344","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":222,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"35aebd31-f14d-4329-87a0-3255ab7d4f9d","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":222,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"1df40bbf-a8ac-4156-8721-5da93d2935df","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":222,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"b5cee46e-f5a6-476a-b971-6254500e989b","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":222,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"0ec0ca20-b69a-41cf-8c80-067aaa36776d","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":222,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"84f2aa10-fd4a-4fb1-a913-fbe1838f5a3e","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":222,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"81af5bbb-d49d-467e-b964-4caafe035c52","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":222,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"ce2a88d6-1e58-485f-9a8f-efd3c48aa3d7","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":222,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"3eb4e310-a999-484f-b1c6-32133487a93e","block_type":"box","text":"risk.","page_number":222,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"18981969-449b-4e94-88de-05b6e4b38d8b","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":222,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"604dd94b-07b9-42e0-8f34-ea3879fd6276","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":222,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"da389fd6-3274-49ce-906c-89f41f7da575","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":222,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"40b9928c-f468-4424-8d0c-7eb637a3b83d","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":222,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"a085f8c6-2355-4bf3-9f07-504e99cf1140","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":222,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"3caabf9f-2f0a-4553-a85d-2e790d810f85","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":222,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"a671cf53-0241-49a9-b519-fbdfe3ab7919","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":222,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"e48d7a61-12ab-47c2-9629-29cc81c8bd7d","block_type":"box","text":"7","page_number":222,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"ef964a9c-2713-44c1-b0e7-2405bfc56fc1","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":222,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"aa6f1085-0731-4166-9472-a8a5dfe3987e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":222,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"51106456-a033-4217-b01c-4d4816f67e4f","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":222,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"18e52324-4475-4d14-8e5f-11273d2a52e0","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":222,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"7429b17b-6ffd-494d-a40b-7f13ddf33923","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":222,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"b86e2471-9b42-42ea-a859-b35a4fc6e411","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2930ada4-246e-4cd1-bef7-edd78c841793","block_type":"box","text":"Global Principles | 7","page_number":222,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"7929c218-7df6-4671-a694-755406d1377e","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1d8dc76-5904-490b-955d-88f632e56f1f","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":223,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"51429ac0-dbd6-4472-b818-f5f2fba29d6d","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":223,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"99a0e6c3-0d5c-4050-9ad1-72f8e05da52d","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":223,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"f8be52ef-58bc-49f4-902b-49072b930c5c","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":223,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"a286e0e5-633a-41e4-8b9d-596e6bb02b06","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":223,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"88454d3f-a3ce-4cdb-8e8e-602924f0f830","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":223,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"90f51de6-7a76-41ed-9ecb-17023cfc0d89","block_type":"box","text":"minimizing costs to shareholders.","page_number":223,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"775a9ee4-cbee-4ff8-9da0-822e1b161542","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":223,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"2f503ed7-53b1-4b3a-991b-6fa60b18aef3","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":223,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"48c5e37f-7b6d-4bbf-92d8-28bc92351a1b","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":223,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"1613fb26-f0eb-4784-bb2a-c462e52839ba","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":223,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"9d0c2308-ccad-4117-b082-972a458036e4","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":223,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"4a21ff72-f4ce-4c3e-b840-55836110cf5d","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":223,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"214de24c-8813-41ec-b108-c4bc140e0ac3","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":223,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"b413b289-de87-425a-b38c-e98f8597705c","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":223,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"85d0bfd7-bd81-41d8-9238-b4ea828ffe5d","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":223,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"d3b8318b-dfb3-4a32-9889-aa4a608f696e","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":223,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"fed11d7f-9ae8-415f-bcca-5e40ecd823ff","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":223,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"cf0226d5-bea4-42de-ae2f-034d36bbd95a","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":223,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"cb07170b-838c-48f2-b0d7-8c473d0c1034","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":223,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"b9f5ad1a-d1f6-4c4e-9f67-357119beb117","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":223,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"8ffd89d2-d92d-4b8c-ba74-194f7f021d1a","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":223,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"62eb4cc3-ae6d-4507-89d0-a7e5edbe8596","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":223,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"0b428b00-6954-44d7-a7a9-02abd6de0606","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":223,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"5a02e1aa-0a25-4910-a362-e779a5f481ff","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":223,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"f86c0897-78eb-4486-ba63-5973a71301ce","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":223,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"6d5ab84a-7abc-4572-99db-7da36b754de6","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":223,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"409b7c78-b9a4-4f78-b635-cf28c964aac6","block_type":"box","text":"ownership.","page_number":223,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"9abd4151-b25d-4341-8fbc-1da652f67670","block_type":"box","text":"8","page_number":223,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"eeb137fe-ab01-4c02-bfd9-08c06e2000d1","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":223,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c4f5b341-f773-437c-a0c2-06fd2d4bc826","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":223,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"875457e6-4da0-47fe-85ba-235484049363","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":223,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"f8e9fcd0-405c-4084-b6ec-1484b52609a6","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":223,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"0fe6650d-9175-4f3b-b2c7-9c2575cd30a0","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":223,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"025fad9f-6d39-4f60-99ee-cf76e57cd670","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":223,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"52ef7649-cb0c-4e8f-a38a-18d62c4b6bd9","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":223,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"8129c4a6-edae-42d0-8894-2561cfd25b4a","block_type":"box","text":"results over a period of years.","page_number":223,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"b19c08a9-db9c-4b13-a817-4bb6f346cb3c","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":223,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"7bf9306a-4967-476d-ad0f-a1cba2aee007","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":223,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"988656b6-f7b0-4edb-a16a-868c3a85112a","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":223,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"3dce3259-8ebf-4504-9d01-b25625a8ba0f","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":223,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"85c8b28a-5e7e-453d-bda7-b99417b4f4bc","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":223,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"106cd8b5-4f14-46c2-b6ff-0f51cdaff61b","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":223,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"f64b9b94-d23b-4817-866a-46cc6cdecd68","block_type":"box","text":"executive compensation strategies.","page_number":223,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"955dc3ca-b59d-4fd7-8d8e-fb54166d4c71","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":223,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"ea0aed48-cb34-4c24-ae6a-e672ab868e37","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":223,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"e67c091a-ce3b-4d71-9aaa-0cf840dbcbf9","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":223,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"05327a65-5bf8-4753-a503-4dc8ba71cfb8","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":223,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"a8b4a6a1-18e3-4ea1-b3bf-be3f9b33a90b","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":223,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"d6ad32c1-2a86-4496-83b9-7dccb52259df","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":223,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"d1bc1b4a-6548-4725-a579-75ac8761d156","block_type":"box","text":"8","page_number":223,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"1b0456ec-3651-4b12-abae-65efbf39df3c","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":223,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"a9de23c4-409b-4afc-bad2-35baca56ca2a","block_type":"box","text":"different markets.","page_number":223,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"ddbaeeff-91c4-4d57-9706-bbd2753e893e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"00030b04-6caf-447a-8185-f8350193c204","block_type":"box","text":"Global Principles | 8","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"aa5ccd05-fcaf-419f-a619-c283f4215ff0","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"393add64-94f8-4a8c-8eee-469af356cc4c","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":224,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"7eed3242-0b2c-4e0b-a3a3-5f5abe7dc232","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":224,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"286fc022-e1ad-4d0c-9048-bbd85dc72d62","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":224,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"627042ac-c89f-45af-a18b-5e82a5eed8be","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":224,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"4532237b-604f-4ebf-9754-fc68aa37e893","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":224,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"e7fc5a7a-1e9b-4c09-9e73-ef83cfb523a9","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":224,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"2b7c73f0-5aa5-4baf-b0b0-e1e2bbd0ef95","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":224,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"fe504d55-050e-4cd8-bf1b-3aec2f0c0357","block_type":"box","text":"whom they are charged with overseeing.","page_number":224,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"e8f34700-924a-4a9c-b222-c75e31fd68c5","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":224,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"77f4a745-483f-4763-a2be-23c8b36754f6","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":224,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"8b7fb412-ff72-4c83-8318-89019ec621cc","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":224,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"cbe15136-5986-4bd1-88bd-bf49d1321de3","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":224,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"0b750b73-af79-44c9-baeb-8fcefe6a97cf","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":224,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"11b7ff54-8a75-4759-b8f6-ce6f504f8dcd","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":224,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"b4e28c5f-61a3-4eac-9bb5-df30f1a18ae7","block_type":"box","text":"structures.","page_number":224,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"a2e5fddc-d6aa-4b62-9a3b-a8caca6f523c","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":224,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"0abb98fd-e0b4-40ec-a739-c8145beff29e","block_type":"box","text":"Corporate form","page_number":224,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"e0f19e74-291d-4076-bd88-e74ed56bfce8","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":224,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"4bc6259a-74e4-42bd-9a6e-14a85e58e82c","block_type":"box","text":"the company’s purpose and business model.","page_number":224,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"ab186a9c-2ab5-4ef5-952f-8f31fb0f0dc0","block_type":"box","text":"9","page_number":224,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"40bc5942-fdf8-41ef-861d-c0290443ae81","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":224,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"041ba32e-97e4-4b6c-b97c-66eafde307c2","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":224,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"43124839-b657-4be9-ae83-0e1e9b337aad","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":224,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"b7e4c13c-e5a3-4a59-974d-8be95e2bf1ff","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":224,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"ed0f7bfd-fb20-4933-9b78-2b18e5f398ae","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":224,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"9c6e5a0b-137a-486e-b930-fa2bddad6d31","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":224,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"9cd87bf4-6bca-45e2-8a09-2e9301db6ef3","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":224,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"1f280ba8-895d-4585-8edf-955972138a89","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":224,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"b5023f53-e204-461e-a5b4-7dc81c81dfeb","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":224,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"21d7f9a2-9739-40a1-812d-f57a7ce1b3a0","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":224,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"4359496f-41e7-4f36-a4bc-7e055979f784","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":224,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"a9b6da12-40aa-491f-a6d3-167d848eecb1","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":224,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"4dbd4c96-950b-4f8c-ae0b-4989061ebceb","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":224,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"14eb6ccc-244f-4176-b07e-3821fc953dac","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":224,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"525e3052-d70d-4575-a644-48565d61e1bb","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":224,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"b7a40f88-599c-46fa-9c3a-81a9622a8a20","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":224,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"3aaba0ef-877c-4d91-9c4d-61fc3a501146","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":224,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"0ab0cde5-60e6-4a61-b934-386e501a4dd7","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":224,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"c73e7270-441a-41cd-9a43-d2087047b8f9","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":224,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"3dfe24e9-a5f0-4383-b1af-f2e7b306b883","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":224,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"20be9bd9-a89e-4dd3-9563-ae6967a41ddf","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":224,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"06ddd988-e12f-43b8-bc8b-ae7fb46609fc","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":224,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"db670302-c7a2-4c65-845b-38d3bc3b5b6a","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":224,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"bb7a86f5-e6d8-460d-b8b1-b0d808246461","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":224,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"ec18e7ae-b858-41be-a295-cc8e1f8c0564","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":224,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"c78a8a1c-2edf-424b-ae25-ff8498664fc8","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":224,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"71804671-0550-47df-ab09-f21905e1bb60","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":224,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"34e4a8c6-293d-47b9-9a5e-e8ec13aedeff","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":224,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"38de8870-f9c5-4d25-9d55-12d048a97d1c","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":224,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"df2dbef7-c5d2-49f5-aaa4-77b72efdbba1","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":224,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"425a4e88-35a8-414e-acb0-5cbe5f0cdbed","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":224,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"c42b9974-416d-4a08-a4bd-0f1d6dbe760e","block_type":"box","text":"9","page_number":224,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"127501a2-f54e-4215-b067-64a04936d89a","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":224,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"afc5f167-f306-4176-aa3e-e1e45d5d0f1e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"08cc3067-5698-4f87-8f9c-afad42d6211c","block_type":"box","text":"Global Principles | 9","page_number":224,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"2d1b5165-1a93-4001-91c3-3d6b863238c4","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44efc6c1-ad70-4a11-b809-3750105653ea","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":225,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"fc014c6e-8e5d-4803-966b-c5e5b9a37465","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":225,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"91ee7d9d-d622-4766-b231-8ed1526ccd62","block_type":"box","text":"long-term financial interests.","page_number":225,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"e946f983-99d8-4522-80f5-f1016db19d69","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":225,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"e97a5d80-82ab-49bb-8b4a-c952a79101b5","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":225,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"58f33fb1-42d8-4378-8d6b-da0d78a396a5","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":225,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"6985f897-0b37-4f99-af37-4a4e327d3fb5","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":225,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"5172b879-cbd9-42d6-b904-e6b39fbe53ef","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":225,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"5cab42f3-48bf-464d-ae1c-599c7ab3427b","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":225,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"9fc7fab5-793f-487a-9a68-47421332cc8a","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":225,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"1e2c7d06-1d27-4521-85fc-12fc3a731330","block_type":"box","text":"term financial value creation.","page_number":225,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"8310e60c-d911-4d0a-8d35-b0e7e4fc4327","block_type":"box","text":"10","page_number":225,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"7f2c09dd-80a4-424d-9b1e-a727dc4550c3","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":225,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"c4eb5c8d-68a8-47c0-abaf-9601166742fa","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":225,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"dadd08dc-e7bf-4877-9a81-d8a3df9d199e","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":225,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"06feb310-ac50-4f9d-b5e8-c17667681678","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":225,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"efb6c466-a1e3-4ccb-b3ed-66352f3b168f","block_type":"box","text":"industry-specific metrics.","page_number":225,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"95f79aac-7ff6-407d-b02b-9fa5ac145c6c","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":225,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"ff6851a0-bc59-49eb-b6d8-a053985b3ee1","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":225,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"3bee8df8-be83-4639-a556-24a5b11ae09f","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":225,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"42b0a715-93cd-4ddf-8ba3-24abc3021d4c","block_type":"box","text":"11","page_number":225,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"49c19d96-b68a-47f4-b412-5c853e6dfd9a","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":225,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"ee68cb1f-582a-430b-aa69-e52ce48d2544","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":225,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"92a8a057-cf9b-4059-85c0-36f5355df5f5","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":225,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"22f807ca-76ff-41af-a6cc-302dbd0ca7b7","block_type":"box","text":"specific.","page_number":225,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"44aed337-5806-4b86-939d-dc1ec3cfc2f6","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":225,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"51324e0d-0e67-4285-b4ff-f8695a036961","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":225,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"b7fef12a-a32d-4286-9592-61c0dfa9ab41","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":225,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"f81bf382-59f8-4872-b07f-935fa15d4318","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":225,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"68c714bd-fed3-4853-af8f-1eef8b8b7961","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":225,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"8cc04b2f-b0e2-4e1f-8977-2e701596b407","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":225,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"8ce46894-e73e-4004-b105-b0af891573af","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":225,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"c3e84a1d-d1f0-4e1f-aa9f-c75f10991653","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":225,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"f2160895-1c35-4d20-a0e5-8383543bf654","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":225,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"a4f6c0c5-d606-496b-8eea-32781cd7de01","block_type":"box","text":"10","page_number":225,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"ac7dc14d-b5ca-4c9c-8e00-876f82d7536f","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":225,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"4abb5dc6-6d5c-4a55-8ec6-b542cd321453","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":225,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"8867f910-a5d4-4a28-8bef-9d0c92647f39","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":225,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"7890cb57-6e74-4ef5-91a9-9a2184649c6d","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":225,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"75ff98da-d9ea-493f-8e2e-07b51b66f6c4","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":225,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"fcce1b97-b85c-48f9-9c9f-c4a2d2f75e35","block_type":"box","text":"11","page_number":225,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"15101f75-9946-401d-82a9-944f399d8960","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":225,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"0b594b75-9cf6-44f6-b2b1-6896b2a81819","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":225,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"6bf1eebb-c165-4a1e-a2d3-a672a0a46f79","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":225,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"7a51c17d-6e2c-42dd-afca-198909e2fa4c","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":225,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"9908cd90-dd8a-4a5b-af1a-8251a08417a5","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":225,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"80c23568-1855-47f5-8eb8-191e4af247ca","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":225,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"d003537a-78c9-48b0-b9ca-449253642f7f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"654f7f3a-33d9-45fe-8d24-e4093b0b6095","block_type":"box","text":"Global Principles | 10","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"7319c9cd-bd66-499a-8cd0-8596a507f87b","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6fe2cc7d-3f9a-4881-a562-4e8e87c0bad6","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":226,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"cd4a4fca-c20b-483d-8149-66dbe225bcef","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":226,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"a06b7f99-8bba-4763-9a3e-832a0c3ba1f3","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":226,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"b4214184-84a7-4833-aee5-25dd5cd96bb9","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":226,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"fb0c1c33-0e48-4666-9bdb-9f685eb108df","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":226,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"a5850995-7e74-4a69-928f-b5a0ab0729fe","block_type":"box","text":"12, 13","page_number":226,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"2ccd3a35-6592-480b-826e-5a010a1ba9d5","block_type":"box","text":"From company disclosures and","page_number":226,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"432b799c-f654-4a99-8665-017132606721","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":226,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"7fffc8a8-21c7-4936-97b7-144bd27dc3d4","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":226,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"43452edc-cb95-4691-9240-42a7c13c7f89","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":226,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"a719e384-5228-40cb-a65d-e1f27a4fea6a","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":226,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"0eef4200-0b3c-4c91-b889-3c3814be9870","block_type":"box","text":"viewed as best practice in the market.","page_number":226,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"77f2a57d-434e-4c8d-ad89-6397a4345fb1","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":226,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"44242ea0-eaa8-4047-96e2-6de68b18e7cd","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":226,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"dd52be44-7fdf-4b9f-9090-53d0071875d9","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":226,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"127a5e7a-d329-44dc-a0f6-95434a852f0a","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":226,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"c758def3-f69a-40d3-b002-78ca1bc43959","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":226,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"f191ae53-3fcc-45df-9646-9f9ecfcebaa0","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":226,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"aed3a761-5dd9-47f8-8ac3-c58693b2403e","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":226,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"96819f6a-bce1-407e-82bc-2fdaf40632bb","block_type":"box","text":"interests of their investors.","page_number":226,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"a479c7a0-c7bc-4e65-be84-173001b50b35","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":226,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"36b037ff-b83e-476e-8047-bacaf2476d37","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":226,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"265e165e-fda3-4ed5-9658-29bdf1b9192a","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":226,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"4f2f39e1-6698-4f28-a101-fbdbb5d29fd1","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":226,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"2ac5304f-0800-41bd-b125-9f41b7147204","block_type":"box","text":"good-faith basis as methodology develops.","page_number":226,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"1932bd3b-0734-4cb9-a6c2-635428851757","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":226,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"598d1f8b-3245-4f68-af0c-de96604b64f9","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":226,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"f2f02c3e-de55-42e6-aee1-622e9ce9b1cf","block_type":"box","text":"generate long-term financial returns.","page_number":226,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"0e338b50-954c-444b-a94a-9b132efae479","block_type":"box","text":"14","page_number":226,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"b4eae289-1fb8-4340-a129-004f41e5d2dd","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":226,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"2ff24df1-6128-45a5-ad92-8cb5f5967479","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":226,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"6f4d2529-f3a1-4492-83f0-b0bd0b3d4ebe","block_type":"box","text":"15","page_number":226,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"0c18b8ff-3bd8-4834-90b1-bbe11502002a","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":226,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"98f61d6f-f7fe-480f-80cb-bc548b8dc184","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":226,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"fa9fd23f-5a2d-4120-b6ef-a4c1df64fd48","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":226,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"6cc5bf8b-03b5-4fde-8098-d3e30fa69b36","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":226,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"e7b89647-e2c3-4388-87ee-0fda3e3034d6","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":226,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"f08fb849-6664-40e1-b87f-155974106e90","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":226,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"3a597dc7-4fb8-40b5-a084-2166e5baa59d","block_type":"box","text":"12","page_number":226,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"70cef2b6-4dcb-4799-99cd-47de196fb2fa","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":226,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"8188855c-5ff9-45c7-b1ea-acfbea4eff0c","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":226,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"ff47237b-d2fb-40cd-834e-4f6d5f297e4a","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":226,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"16f1d8ed-a24d-43c2-b46c-5dcaa83c72db","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":226,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"55f259e2-c3aa-49f4-ad16-9703b862aa09","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":226,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"9c7a637d-cea9-485b-87d2-9d510a333024","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":226,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"d0b82910-125a-4e35-a24b-93b4d4692c78","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":226,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"269439b1-37d3-4c31-8630-9b259cbd4442","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":226,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"a82da41e-d5ee-4b8f-854c-1da00ae24d93","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":226,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"bd68f42d-d415-4af0-8a98-b4cdf749cbd2","block_type":"box","text":"13","page_number":226,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"13541b75-96cb-435a-84c4-c4c30e2f907c","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":226,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"8254fcf0-6f7b-456e-95ec-1300bfeff1a6","block_type":"box","text":"2025.","page_number":226,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"6b1b9ace-3b70-450c-b83c-8203861f69e8","block_type":"box","text":"14","page_number":226,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"b8d19919-86ed-418b-9143-e4d7d4188a29","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":226,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"2dd086dc-b9c1-4277-b7d5-39b1726b1ac6","block_type":"box","text":"2025.","page_number":226,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"4281c712-fe38-4869-acf8-21c6ced9ba09","block_type":"box","text":"15","page_number":226,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"03c5a4d5-8153-4749-9f5c-759af2f93863","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":226,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"44dc675e-b677-48a7-b51c-f3807420a4f8","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":226,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"5241697c-ce74-4d8d-b458-d3bc5c789e2b","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":226,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"bf55bbef-7436-49cd-b44f-558937ee722f","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":226,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"137e5ab1-434f-45c9-bac8-d82f32b5f43d","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":226,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"becad0d6-7c02-4828-bdc3-57163fe63272","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cb33ac89-deb8-4f98-8514-a5c01919e1f7","block_type":"box","text":"Global Principles | 11","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0a31925f-4825-4ddf-a203-447ac2d3b048","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3866680a-b900-4be9-8561-5339a072fa55","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":227,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"378fcb79-6f5e-4901-8a09-f0946a1811a9","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":227,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"f36822ce-6a6d-42d7-9dc0-46f8b465446c","block_type":"box","text":"16","page_number":227,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"e900b46e-4218-4deb-9c82-c328d3107be5","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":227,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"c70692db-973e-46d8-85ff-8ea217909a82","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":227,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"11b316fc-0905-4a94-b25b-b744d44773a9","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":227,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"50def682-7a9a-4bf9-85b8-7770ea068f28","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":227,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"41aaee76-0cad-42b8-bb15-3ec815ab62b1","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":227,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"f5bc6255-9026-4825-bcc7-21e7f41d1aee","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":227,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"61b48fb2-2a98-450b-b743-fcc5f8b5fe88","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":227,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"09fbfa4e-8952-4890-9aa8-64e8648abbd4","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":227,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"023fcf91-693e-4e7a-bf41-678e2d80574e","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":227,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"a86a4a7c-2212-40eb-9320-f9a06e700a73","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":227,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"a1aa0c37-5656-403f-9042-93527999a109","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":227,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"2e40ed6f-f9f2-4c9d-af66-8e534cca3148","block_type":"box","text":"impacts.","page_number":227,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"0c3f2582-abd6-4a58-a7cb-a102bbefb1b5","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":227,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"7205d798-3b9f-4748-951b-e3df99a334a2","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":227,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"dd3e4abf-4f70-43fe-ae0e-7206f0fd753a","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":227,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"a193731e-6a93-48fd-90d3-4f808213cd6c","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":227,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"42148ef5-6f36-4e84-9254-5a360f3c7a12","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":227,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"036f1344-2cc0-4c50-9a66-3667347419cb","block_type":"box","text":"clients at the global and regional level.","page_number":227,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"7cc7d676-b813-4202-825b-ff51a09f7b4d","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":227,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"31fc3e30-934c-4765-bbee-8685e45423fb","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":227,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"aaceeb3d-da4f-4213-84fd-47459916ee37","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":227,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"6b7bfc7e-7965-4b90-ab30-5bce95152a70","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":227,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"ef45220f-fea7-4b7d-863e-094692d395f2","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":227,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"45815f1b-4824-4068-a9ae-99873d0e5830","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":227,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"56a8f327-b532-4a0b-8c4f-083dd0d03d12","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":227,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"353f36b8-8191-42aa-bfc2-2a99f7c3be17","block_type":"box","text":"are independent from the investment stewardship function.","page_number":227,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"d0ea8698-d306-41fd-be99-9ec74adfdee4","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":227,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"2c1021ce-4faa-4552-a864-04cc5340ed43","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":227,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"83a8ea75-378e-4612-b266-b4cad9680aca","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":227,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"f03668d9-cf75-407e-94e8-20465fe6a4c9","block_type":"box","text":"VOTE EXECUTION","page_number":227,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"4d8776ed-2b5c-4c2d-b136-88428d276f64","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":227,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"66fa61db-6dbd-41a7-b6f2-dc39a9d165f1","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":227,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"126358a0-d000-462f-a37a-0b4b37a3bc22","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":227,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"6efce423-1bb7-47ee-9a1a-57bff476b1ad","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":227,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c30edf7c-bb26-453c-b4f5-eca7f4b90416","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":227,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"23d0d794-d6ab-4688-8845-6b3443a8cd7b","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":227,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"9284e769-5fe8-40ec-be70-38165764aeaf","block_type":"box","text":"management policies and procedures,” below).","page_number":227,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"1229634b-c86c-4b6f-a53b-298cdeeb3ef4","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":227,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"ed375bce-cf98-4904-b788-5e73b7ddc5de","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":227,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"7bafb687-4469-4493-8f18-c3930892214a","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":227,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"28446471-0669-42f2-b3b8-f4786d651618","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":227,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"d82a7b8d-2860-42cd-be50-de2eaa3b6567","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":227,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"d58dd4d9-cdfd-476a-91a6-4fae81e2881b","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":227,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"e7ee0e41-773a-48a1-ae07-c0eb7d653327","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":227,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"a290d539-1d0f-465b-b4f9-01a667bea451","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":227,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"a5050486-0783-4c21-8855-3038c2f193dd","block_type":"box","text":"16","page_number":227,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"ede5516f-45e3-4280-bf93-354611b9ff11","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":227,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"42f731ac-0335-490f-a5dc-9cd834d2bd9a","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"92f3348f-4588-4abe-b8ad-6b80fa8b70b0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a1152288-64c5-4e62-99f8-1881463bfb92","block_type":"box","text":"Global Principles | 12","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"3e0f7461-6360-429e-9020-84572fe3b278","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"adb387cf-bed4-40d5-80eb-3eb30ba9891d","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":228,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"d4c49c23-3bbf-4a84-be1f-fdc65a3e4528","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":228,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"3d1f2870-44a1-477b-80de-601d825b7d4c","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":228,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"690cf47d-502a-4c93-8cf0-73361c391b17","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":228,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"03d24ff8-2110-4ad7-b8e0-545b2dc5d714","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":228,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"baa621e2-b6ca-4f10-b910-55e8785d0ffe","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":228,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"fb9dbc2b-c41e-451d-8138-e0de85baf370","block_type":"box","text":"enterprise-level vendor management activities.","page_number":228,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"9c35872f-856f-4267-ac6c-f60637c79009","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":228,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"bd3da076-08c3-4ba0-8a7b-675818d99bb0","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":228,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"1330f2c7-36be-4d73-af95-b67294e7787f","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":228,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"bb0b36e6-7a55-46fa-9468-df6d20ae0c0f","block_type":"box","text":"BlackRock employees.","page_number":228,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"8f0c53f3-89ba-4dbd-a60b-76d43679a071","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":228,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"f4eb2115-37ac-4bc5-ae52-92c9be8d1976","block_type":"box","text":"SECURITIES LENDING","page_number":228,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"85b9eff0-6fa7-4d71-8c65-4ca550860ac3","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":228,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"f51a7197-35ab-4135-bcc8-cd49a32199e6","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":228,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"98ba28ef-d861-4c6c-81fd-d0c8ce218bac","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":228,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"28539836-2d99-4b55-a03a-2056762fcda2","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":228,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"8535bad2-3446-478e-a8cf-9e5f4d4ccb18","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":228,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"7756818e-c75a-411e-b2f8-58b787e4236b","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":228,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"8c779d30-9b5c-486e-8093-39df1a4acefe","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":228,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"d1441050-1211-49f5-8f51-286348d67d96","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":228,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"53124636-3313-44c6-99f8-a7f312dcfc05","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":228,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"395027ac-1c5c-45d5-bf16-936298cd8eb0","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":228,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"8a4d621d-12fe-48ee-97cd-b20ce906457c","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":228,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"e4914cd3-c34a-417b-a01c-a52e06376832","block_type":"box","text":"of recall consideration).","page_number":228,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"9db1f7b2-87a6-48b3-adec-0415d90e5a24","block_type":"box","text":"17","page_number":228,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"21d92859-cf6f-44c5-8e81-3e8d488e07ca","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":228,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"7a610ff7-29e9-4b10-9072-730239ad39bf","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":228,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"9c1e4208-210d-4832-b4b4-f8851d6b5042","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":228,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"2bd07840-60a3-493c-8078-002607d5fe31","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":228,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"f093066a-0c6f-43d5-8ada-a3d422233ba9","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":228,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"4933658c-ace8-4bfe-9089-b6a9e2bae207","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":228,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"ddb9f82f-8fc6-4a5f-84f4-71e3ed372be6","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":228,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"c580c744-709f-4b6b-a99b-e854cfe9af2d","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":228,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"8b98a8c5-8eb6-4861-a2b1-7f500161fd6d","block_type":"box","text":"and may modify it as necessary.","page_number":228,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"c19ddfc3-2038-4968-8fae-4b64554538b5","block_type":"box","text":"VOTING CHOICE","page_number":228,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"5982721e-7c17-462d-9d94-69bcc224ce82","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":228,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"6bdd5333-9d63-4900-80b9-8e6d3d33bd9c","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":228,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"9ebb8f4d-4d48-4960-9399-ba0914d3945e","block_type":"box","text":"18","page_number":228,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"b14eb6bc-41ea-4d4e-b553-8fce3c1f2f90","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":228,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"5439a68c-b96a-46d5-9d59-5d92ef881eaf","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":228,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"f3de4a43-6dbd-4a7f-96fb-aa70d2959a54","block_type":"box","text":"17","page_number":228,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"9da1ed69-da70-4d7e-b9d2-5a60e6f39ed8","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. 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Please refer to the IFRS website to learn more about the framework and standards S1","page_number":235,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"688aa65b-7245-4bb6-bc80-9dd590a0ec0f","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":235,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"3668e956-4a53-4f38-9475-e88c7a9ece9f","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":235,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"6990676e-b054-436d-8735-79fc813a16cf","block_type":"box","text":"15","page_number":235,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"930840bc-1b37-45ac-a5f7-d2a12234fe58","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":235,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"696504b1-7796-41c1-a5d6-2862925c2309","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":235,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"cb5b7324-5367-4ebf-9685-01f788d96004","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":235,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"318a7ccc-824f-466f-9c63-24f115a0103b","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":235,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"4f7bc71e-a467-44e6-a5ad-87f96f6dfd0e","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":235,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"1e45a1cb-bd80-4a9d-8e74-c2b472b038a6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":235,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e221d4bf-8676-40c7-89fb-d477cabb956f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":235,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"5260fc67-b4ec-4e55-b57f-849c4078e25f","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":235,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d4be43b-74b4-4f7d-809a-8ecc6b45bdb9","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":236,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"fdc850b4-d140-4719-aa60-aa6ece9060e1","block_type":"box","text":"16, 17","page_number":236,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"1278bd32-d78b-41e0-b91d-547207feaeba","block_type":"box","text":"In addition, the dedicated team looks to","page_number":236,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"b5498c90-356c-48f8-a4f7-e72994803841","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":236,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"58bd885f-99df-47d7-803d-4eca2bc9d931","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":236,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"d9b962d9-f07c-42c3-a4aa-92466f34e6df","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":236,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"640ba6fa-84d4-46ea-9f31-2041a1e7154b","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":236,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"a52daaab-a7cb-4c37-b62a-4c946fdc078d","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":236,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"b142b6b0-c571-4d5e-9ac0-935763e1a735","block_type":"box","text":"18","page_number":236,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"12dfc1a6-f902-4ad8-83ad-caf8911be044","block_type":"box","text":"However,","page_number":236,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"bf630d73-5c33-4b85-8d3e-8aafef25b364","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":236,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"a88a030c-3979-4940-9d2d-da30922f04c2","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":236,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"b66adca6-455f-4733-8311-865c6ce37000","block_type":"box","text":"their decarbonization targets. For some companies that play an important role in the low-carbon transition, scope","page_number":236,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"c8ba50e8-c483-4fcb-a648-3c5024030415","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":236,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"dbfb967c-a2a7-4c88-80a7-5a8b41fd543c","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":236,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"dc24741e-e33b-44b4-bad4-a13893f95765","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":236,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"50f1bd32-bc20-47aa-983b-3ec3605f558b","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":236,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"d6254317-5296-42c1-b922-187cea937d4e","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":236,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"0f380f54-ec56-462b-a724-0bb5d79bcb77","block_type":"box","text":"transition risks.","page_number":236,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"ee532ccb-bfa5-423b-87a4-7fdb914c2f69","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":236,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"e3f1349b-0c7e-49ac-8510-72b31472a8ca","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":236,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"92fcf75c-fb2f-46d4-9a7d-279e61e73201","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":236,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"e5f60bf1-b51a-48db-b79e-34550085b864","block_type":"box","text":"Transition plans","page_number":236,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"836ebeb9-bf73-41fd-a0a1-76055f8c51b7","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":236,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"278c6f23-c329-4028-8e18-fa5674110176","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":236,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"b08f1f33-8eef-401c-bcd2-638f37ba738a","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":236,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"c9d3aca6-dc96-4f41-be39-5621459e8cf1","block_type":"box","text":"(see Appendix 1).","page_number":236,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"86852667-ca1b-42e6-aeac-cb322e6aa929","block_type":"box","text":"19","page_number":236,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"f23942ba-1ab6-477a-b10b-ed8eaa0d101e","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":236,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"f1519a47-4744-4dab-a258-7dd6c4488f24","block_type":"box","text":"transition plans.","page_number":236,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"cc9b05db-f2c7-4ded-8856-7686574ea65f","block_type":"box","text":"20","page_number":236,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"4a52f6b5-260c-4123-82d2-37155a21edbc","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":236,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"0b6461c6-f88d-4857-a2f1-f55cf3986b92","block_type":"box","text":"reporting approaches.","page_number":236,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"1ce7004a-343b-40d6-ba47-2fb54cf19c5f","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":236,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"dea9dfd0-4544-4850-a0f0-75df75eb657a","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":236,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"b4baea20-441e-4ccd-82cd-303e8f856da3","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":236,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"0d77557b-ade8-4124-996e-a7b76c3f910b","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":236,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"10895bf6-60a8-4105-93e5-0b5b0d2fe42e","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":236,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"6889ed6e-cd96-4962-933d-966ffa3bfb2e","block_type":"box","text":"informed voting decisions.","page_number":236,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"756962c7-2263-4fff-9340-5e9572dec9bf","block_type":"box","text":"16","page_number":236,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"9042179b-be28-4b21-8692-556a48cca3e1","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":236,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"d8d5c21b-dd5b-41a9-a0cd-ef3367bc5d38","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":236,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"d09f2462-2935-4952-9f31-701b65e67f74","block_type":"box","text":"December 2025.","page_number":236,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"6836886a-3f1b-446a-96bb-923562a9d602","block_type":"box","text":"17","page_number":236,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"9be89d77-9027-4c85-8dee-e01b0c5aee53","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":236,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"0848be2c-9be2-406a-a94d-952645c4575e","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":236,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"c8a17899-2f34-4000-afef-b0170f5d6e06","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":236,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"dba51f7d-2ff9-4b6a-a03d-9b8a207fb37c","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":236,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"53d477e4-036d-4f3b-98d4-561e16ed87a7","block_type":"box","text":"18","page_number":236,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"afe7496a-f1af-4643-9800-29025679d7f7","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":236,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"fcb0da04-00e1-44c2-bd7b-40f62754f291","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":236,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"71ac5cc4-5bb7-4d23-ba7c-7e7ee56ecf75","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":236,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"d988621b-32c2-405b-b208-83d3164b69aa","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":236,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"8ab7fe2f-900c-4f1d-a65e-ec14bff61733","block_type":"box","text":"material to their business models.","page_number":236,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"780349ef-caed-4283-bb1e-c5b072d88ebd","block_type":"box","text":"19","page_number":236,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"f906d81d-f3cf-4a7b-b59e-85788d74e20b","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":236,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"f85091f9-4ef4-47b4-899d-d9826e92feca","block_type":"box","text":"December 2025.","page_number":236,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"68e6060d-5812-4473-a218-a73fd72b6b39","block_type":"box","text":"20","page_number":236,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"2faf57a8-96bb-4108-be5c-b34fc088c564","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":236,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"79e4c139-5b10-4ae1-9871-19df3b90ba6f","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":236,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"efe5909f-d9f1-4799-bc51-de5b9579439b","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":236,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"db446960-d3b6-4d76-8976-27c433f3bf9c","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":236,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"2346d869-fd8a-40c9-ab2d-0ffe18d15db3","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":236,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"2c4c2704-6e00-4261-b449-c7bcb1eef35a","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may support","page_number":238,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"e79b2450-fec1-4281-80f8-4d8f55657975","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":238,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"541a2f70-235e-4c4b-adae-020db17bc4b5","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"83e53616-a2d5-462c-bb38-89411f82d886","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":238,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"119de460-1ec5-406c-b71b-fb83e774f9ed","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":238,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"7e913628-e02c-4a26-903c-2cedea2e05c0","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"f126251d-0a5a-4ba6-8a2f-7491493415bf","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":238,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"c3f47431-ea96-4a37-bce2-b4f4e7a0f6df","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":238,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"b04a766c-bca4-4f54-9fd9-fd4234823993","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"537ded4c-89fd-4f3b-ab4b-ecac3cdfead0","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":238,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"5faf0107-24b4-46ec-93ef-e2757e8036a5","block_type":"box","text":"•","page_number":238,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"0e593dfa-9644-47e9-b83c-3cf8a5b2132c","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":238,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"0c7c3056-93d8-44bb-98e4-22ce81763239","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":238,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"80aa02ed-e6dc-465a-9fbb-3f8edbdbe8f4","block_type":"box","text":"25","page_number":238,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"595acf6d-f5c3-447b-a3d8-7763447ccfba","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":238,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"f537e4d5-17d2-483f-87f6-9f453cf9ab11","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":238,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"1d3204d1-2e6f-4580-983b-016c68ea558b","block_type":"box","text":"RELATED MATTERS","page_number":238,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"f79ebebc-0499-478d-9297-fdfa4079722c","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":238,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"87df69e5-4921-4f0f-99da-916b970f78e6","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":238,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"d0551af4-e9c9-4b9a-8f6a-4c5d044889ca","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":238,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"89eb1d44-939b-4a11-958a-31f88ba6bbaf","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":238,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"942626c2-70b0-4810-904f-1d0b868e35c2","block_type":"box","text":"Executive compensation","page_number":238,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"b8ff4920-5b52-40d5-986a-e4633ca1212a","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":238,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"0f10f0ae-ffe9-4426-9c36-d4a80816bab0","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":238,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"4de23e53-1ced-4a27-b251-5696df3be6d2","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":238,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"0228c4e4-e88f-4b5a-8a8b-51523e5e5084","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":238,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"2d17f991-7d7e-467d-81f3-bc3b9a1dae92","block_type":"box","text":"24","page_number":238,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"0496c476-c702-42cb-bb51-fd33cadc692e","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":238,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"01be7b83-fd5f-4b62-a1e8-2095260ca8ca","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":238,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"83eccb0f-90cb-4665-b7e1-f4188fa9358f","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":238,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"ad204f33-c345-4186-af4f-edfd3c53da36","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":238,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"5a5db2fd-8577-4518-817a-73f782c409b7","block_type":"box","text":"25","page_number":238,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"6f9268b4-3399-455b-8598-f2c3cc7344cd","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":238,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"e92396a3-25fb-4267-9b27-905ff3a6ab09","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":238,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"244776b6-0848-4401-8e7e-fe307195cd43","block_type":"box","text":"BlackRock Investment Stewardship","page_number":238,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e87a337d-089b-487d-83ec-bc8cb6f15388","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":238,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"871e7548-220d-4df8-a47b-54467adcd1d1","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":238,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e8ffcc1-62b7-4d7f-9b44-6913eabb4e71","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":239,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"171d2d56-ec58-47ae-8d78-a9e9eb5255a9","block_type":"box","text":"strategy and risk management.","page_number":239,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"00fd1f1c-86cc-4e64-94f9-4086067db67f","block_type":"box","text":"Auditors and audit-related issues","page_number":239,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"d5467754-178a-4148-bd54-285d9d9d7cdd","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":239,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"195ccae9-30f0-462e-abcf-3a2df5714f98","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":239,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"f0374255-ea0f-4ff6-af81-fab28e2a6086","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":239,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"c6a424fb-5b6a-4f69-be56-9065a9bb728b","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":239,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"82b87125-9c13-4a92-8638-cd5cb5291d8f","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":239,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"f811f048-82bb-4b8e-89c2-f43d9eabd806","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":239,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"b0e71971-a934-46a4-b0d6-f69f98e76f8b","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":239,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"d1412a6b-9ee2-4132-992e-80ca8d60f67d","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":239,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"8b0ef8cd-ba81-4637-a453-5a20f90c10f8","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":239,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"94ccae0e-aee9-4a1f-a577-40f646ca00e2","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":239,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"16c87a10-fd31-4cd0-a6e8-599c47f8f0ba","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":239,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"75818792-a64c-4a41-8e47-41c166dfa556","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":239,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"6926c5c4-e96c-4db7-a03c-be47735d21f7","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":239,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"3f3e08ff-17eb-4c0b-8add-c7097d58bfe6","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":239,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"c9c3ba57-9cb8-44a9-a9b0-ce541e6124aa","block_type":"box","text":"stakeholders.","page_number":239,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"fd7d0ad5-5bf3-4e25-ac1f-da2579db0d2f","block_type":"box","text":"26","page_number":239,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"5d399c8b-0c14-48a2-bfe0-7351b66df382","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":239,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"f8ad0c93-6b1e-49e2-b867-393d98d670d9","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":239,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"eafe3077-1802-4004-8620-b2abe3c60760","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":239,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"5c5b6b17-62d3-4b9e-963f-f64d93836b19","block_type":"box","text":"team may engage companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":239,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"169842c8-5cc3-4191-8e6c-f71940788e86","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":239,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"78f65cf6-d65a-4398-a55f-9e756315ff88","block_type":"box","text":"26","page_number":239,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"4384c049-676e-4c2e-8083-6774be4624d1","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":239,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"1e820c2f-7bad-46f4-a451-0fdd7f3387bc","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":239,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"ddd01808-d4c8-4551-a883-60b5ee577ccc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":239,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fe4a8664-966b-4bfe-a00d-bd8c17c35481","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":239,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"880e6474-7cbf-41ac-86fb-632dc0bcab86","block_type":"box","text":"BNM1026U-6033397-19205819","page_number":239,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fb2f5f1-3b96-43bc-9b3a-d0642008b4b5","block_type":"box","text":"Appendix 1","page_number":240,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"5a8fba9d-70db-4765-959f-3faebe748f0a","block_type":"box","text":"Terminology","page_number":240,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"079a92df-7135-403c-8702-74386ea92c89","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":240,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"297ab0a2-c07a-4271-8dc2-a8f989269309","block_type":"box","text":"Climate risk:","page_number":240,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"5ed53b7b-cbb9-4476-b759-f0a7e42a7f0a","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":240,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"05029aee-2619-4a39-835b-65031ef05063","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":240,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"e91e0d29-2a2c-4381-b40c-3fab6f6832a7","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":240,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"a79439fb-201d-44e5-b594-7a4a5a78f577","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":240,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"ab4acc55-ec43-4831-bd42-39b8c963d4d6","block_type":"box","text":"The global economic shift toward lower","page_number":240,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"e17881d3-b890-438c-a577-e96d3c964d12","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":240,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"b5dc9111-157c-480e-8622-4d62b9e4716a","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":240,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"31653928-95ea-4ca7-8733-104449f4a87c","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":240,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"288a87fe-db1b-4afc-bc11-26dc8da0267a","block_type":"box","text":"Decarbonization:","page_number":240,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"c404fc1f-f596-417b-9cd0-3f18df6fe9e2","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":240,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"4e50f6de-2f3d-4299-9ae0-caf3bf2c2fa2","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":240,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"50ec6f45-2079-4413-8890-20ee153551b4","block_type":"box","text":"individual consumers. 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