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I-24","page_number":16,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"ecd5dc4a-bba5-4858-8de0-0b2e1ad1805d","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"7c7c407d-ab08-4407-83c3-e625f9d65f48","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":16,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"59f3dbd8-9f70-40a8-999c-fa236b821d8c","block_type":"box","text":"Financial Statements","page_number":16,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"7afa1e9f-46e0-4efc-aa60-11ab35196ea0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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II-84","page_number":16,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"712d7e5b-7045-4520-af8a-6caf4744cd44","block_type":"box","text":"Purchase of Shares","page_number":16,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"0dd10c3d-6237-4515-a38d-7990fa85a547","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-98","page_number":16,"box":{"x":211,"y":336,"width":698,"height":9}},{"id":"b07a3f5c-8f42-40a0-8cf5-c3e74a180c7e","block_type":"box","text":"Redemption of Shares . .","page_number":16,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"36964c28-a23f-45ff-92db-d304193759d7","block_type":"box","text":"........................................................................... 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I","page_number":16,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"b9ef4dd4-34b9-41eb-b0b9-9f86b57fb5c5","block_type":"box","text":"I-122","page_number":16,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"16bc14a3-334c-4fdb-9722-027148eaf2a7","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":16,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"6ccfe3b7-529f-4c4a-b89e-6fe06ccb5f05","block_type":"box","text":".............................................................. 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I","page_number":16,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"dea9700d-2b98-42a8-b1f1-8fe5b7fe57f9","block_type":"box","text":"I-136","page_number":16,"box":{"x":874,"y":435,"width":35,"height":9}},{"id":"236736b1-289f-4707-bd4b-c7bae88826ba","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":16,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"61b9dd73-3f80-41fb-af02-faea53a37513","block_type":"box","text":"........................................... 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B-1","page_number":16,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"ffe5abb0-565c-420c-a2fb-53fcdeeae805","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c62348a-c0be-4ca0-9a4e-257c0ea32e5b","block_type":"box","text":"PART I: INFORMATION ABOUT THE FUND","page_number":17,"box":{"x":340,"y":45,"width":298,"height":9}},{"id":"db9bd37a-0bbb-4953-9f3e-dab790894dd0","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about BlackRock Systematic","page_number":17,"box":{"x":102,"y":67,"width":768,"height":11}},{"id":"d703d068-3907-409a-9d22-f946fe8372fc","block_type":"box","text":"Multi-Strategy Fund (formerly known as BlackRock Alternative Capital Strategies Fund) (the “Fund”), a series of","page_number":17,"box":{"x":70,"y":82,"width":787,"height":12}},{"id":"fa25b4b8-d3cc-4e7e-bc21-e21dcaab1c5a","block_type":"box","text":"BlackRock Funds IV (the “Trust”). It includes information about the Trust’s Board of Trustees (the “Board”), the","page_number":17,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"244606e8-a38c-49a7-a296-084972b70c7f","block_type":"box","text":"management services provided to and the management fees paid by the Fund and information about other fees","page_number":17,"box":{"x":69,"y":113,"width":796,"height":11}},{"id":"29f8450e-fc8c-4bbf-ac1b-dc9f796ec1f5","block_type":"box","text":"applicable to and services provided to the Fund. This Par t I of this SAI should be read in conjunction with the Fund’s","page_number":17,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"46e46286-6bdb-41f1-bf37-00d9cce6b7af","block_type":"box","text":"Prospectuses and those por tions of Par t II of this SAI that per tain to the Fund.","page_number":17,"box":{"x":69,"y":143,"width":560,"height":11}},{"id":"4667e005-8435-43b8-ab69-696853470819","block_type":"box","text":"I. 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Securities","page_number":21,"box":{"x":73,"y":583,"width":154,"height":10}},{"id":"9a4c2879-d551-4f86-8968-f0dbf8fb7591","block_type":"box","text":"X","page_number":21,"box":{"x":819,"y":583,"width":8,"height":8}},{"id":"d5a33a92-888d-4cae-8de4-d7cc5d84d7fd","block_type":"box","text":"The Fund’s primary vehicle for gaining exposure to the commodities markets is expected to be through","page_number":21,"box":{"x":101,"y":606,"width":731,"height":12}},{"id":"4541f895-d24e-47af-9e35-164aa32386b0","block_type":"box","text":"investments in the BlackRock Cayman Systematic Multi-Strategy Fund, Ltd. (the “Subsidiary”), a wholly owned","page_number":21,"box":{"x":70,"y":622,"width":781,"height":11}},{"id":"5dcd6896-6d8f-4dbc-ae9a-10c9fbfb27c1","block_type":"box","text":"subsidiary of the Fund formed in the Cayman Islands, which invests primarily in commodity-related instruments. The","page_number":21,"box":{"x":69,"y":637,"width":826,"height":11}},{"id":"74ea4144-5771-4592-a5c4-9c22e3b5588a","block_type":"box","text":"Subsidiary may also hold cash and invest in other instruments, including fixed income securities, either as","page_number":21,"box":{"x":69,"y":652,"width":760,"height":11}},{"id":"24cdffa0-f6b0-4532-bb9f-bfa92130ba32","block_type":"box","text":"investments or to serve as margin or collateral for the Subsidiary’s derivative positions.","page_number":21,"box":{"x":70,"y":667,"width":624,"height":11}},{"id":"1ef29d78-6374-4e2a-aead-443da378dfc4","block_type":"box","text":"Investments in the Subsidiary. The Fund may invest up to 25% of its total assets in the shares of its wholly","page_number":21,"box":{"x":102,"y":690,"width":766,"height":11}},{"id":"08457205-e013-47a2-ac30-bed9ac03a08b","block_type":"box","text":"owned and controlled Subsidiary. Investments in the Subsidiary are expected to provide the Fund with exposure to","page_number":21,"box":{"x":69,"y":705,"width":815,"height":11}},{"id":"6e64f213-5e1d-4c24-a7ec-72b2ba8c241b","block_type":"box","text":"the commodity markets within the limitations of Subchapter M of the Internal Revenue Code of 1986, as amended,","page_number":21,"box":{"x":68,"y":720,"width":821,"height":11}},{"id":"470cb92f-cfcb-4a8d-8083-9567a9140432","block_type":"box","text":"and recent Internal Revenue Service revenue rulings, as discussed below. The Subsidiary is advised by the Manager.","page_number":21,"box":{"x":69,"y":735,"width":833,"height":11}},{"id":"5a26d3ab-2378-410e-9e98-96de214179ed","block_type":"box","text":"The Subsidiary (unlike the Fund) may invest without limitation in commodity-related instruments. However, the","page_number":21,"box":{"x":68,"y":750,"width":783,"height":11}},{"id":"cead406b-c29e-4681-8a88-b8a36acbe9ce","block_type":"box","text":"Subsidiary is otherwise subject to the same fundamental, non-fundamental and cer tain other investment restrictions","page_number":21,"box":{"x":69,"y":765,"width":833,"height":11}},{"id":"b9bedb55-ca8e-4805-926b-87ff2a50810a","block_type":"box","text":"as the Fund, including the timing and method of the valuation of the Subsidiary’s por tfolio investments and shares of","page_number":21,"box":{"x":69,"y":780,"width":838,"height":12}},{"id":"37cb5f0e-42c5-4620-8605-6561a9453eb3","block_type":"box","text":"the Subsidiary. The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all","page_number":21,"box":{"x":68,"y":796,"width":829,"height":11}},{"id":"a9758c3c-9383-4df9-8832-db1d3056fd18","block_type":"box","text":"material respects, as the policies and procedures adopted by the Fund. The Subsidiary is a company organized under","page_number":21,"box":{"x":69,"y":811,"width":838,"height":11}},{"id":"28299c20-d118-4bc2-b9f2-77e270dc994e","block_type":"box","text":"the laws of the Cayman Islands, and is overseen by its own board of directors, which is comprised of John M.","page_number":21,"box":{"x":68,"y":826,"width":780,"height":11}},{"id":"5e177d73-c656-4af0-8cbb-b5847dec430e","block_type":"box","text":"Perlowski, a Director, President and Chief Executive Officer of the Fund, and Trent Walker, Chief Financial Officer of","page_number":21,"box":{"x":69,"y":841,"width":818,"height":10}},{"id":"26294242-106e-43dc-9bf7-1cabe2689b25","block_type":"box","text":"the Fund. The Fund is the sole shareholder of the Subsidiary, and shares of the Subsidiary will not be sold or offered","page_number":21,"box":{"x":68,"y":856,"width":835,"height":11}},{"id":"d708bf2c-87a9-4bec-ab39-a309b3cfec2b","block_type":"box","text":"to other investors.","page_number":21,"box":{"x":68,"y":871,"width":129,"height":9}},{"id":"9a25b673-8366-4aa2-afdb-6024e15783de","block_type":"box","text":"The Subsidiary invests primarily in commodity-related instruments. Although the Fund may invest in these","page_number":21,"box":{"x":101,"y":894,"width":751,"height":11}},{"id":"2dea7aad-607b-4be0-bc9f-76fcf9909942","block_type":"box","text":"commodity-related instruments directly, the Fund will likely gain exposure to these commodity-related instruments","page_number":21,"box":{"x":69,"y":909,"width":808,"height":11}},{"id":"f9b12b59-669d-4afd-a67b-5630b0639ad7","block_type":"box","text":"I-5","page_number":21,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"80d91058-d4d1-4ca5-b8ec-d9f89c2a0342","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"481e6d58-ef95-40d2-8cd5-58de871a662f","block_type":"box","text":"indirectly by investing in the Subsidiary. To the extent that BlackRock believes that these commodity-related","page_number":22,"box":{"x":70,"y":45,"width":764,"height":11}},{"id":"08b23fb7-b973-447a-b195-779787993684","block_type":"box","text":"instruments provide suitable exposure to the commodities market, the Fund’s investment in the Subsidiary will likely","page_number":22,"box":{"x":70,"y":60,"width":831,"height":11}},{"id":"f61f8f9c-2f30-48cd-95e5-cf67d6086816","block_type":"box","text":"increase. The Subsidiary may also hold cash and invest in other instruments, including fixed income securities, either","page_number":22,"box":{"x":70,"y":75,"width":839,"height":11}},{"id":"1fc39d76-72a2-40db-aa99-0e16d3c429aa","block_type":"box","text":"as investments or to serve as margin or collateral for the Subsidiary’s derivative positions. The Manager manages","page_number":22,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"2d25f630-6cc9-4c3f-9b33-ac6c9010e173","block_type":"box","text":"the assets of the Subsidiary pursuant to a separate investment management agreement (the “Subsidiary","page_number":22,"box":{"x":68,"y":105,"width":754,"height":11}},{"id":"b4f7196b-01d6-44ff-91bf-2fe0d50058c8","block_type":"box","text":"Management Agreement”), but receives no additional compensation for doing so. The Manager has entered into sub","page_number":22,"box":{"x":70,"y":120,"width":833,"height":12}},{"id":"e6cb828a-0a02-4435-af2c-2ad6b1f70bf0","block_type":"box","text":"advisory agreements with BlackRock International Limited and BlackRock Asset Management Nor th Asia Limited with","page_number":22,"box":{"x":69,"y":136,"width":835,"height":11}},{"id":"a31a3a0a-0e42-4b8a-a1ef-69133b55fe89","block_type":"box","text":"respect to the Subsidiary. BlackRock also provides cer tain administrative services for the Subsidiary, but receives no","page_number":22,"box":{"x":69,"y":150,"width":836,"height":12}},{"id":"16d7f88f-d87f-4423-93b9-6475fca5b6c7","block_type":"box","text":"additional compensation for doing so. The Subsidiary will also enter into separate contracts for the provision of","page_number":22,"box":{"x":69,"y":166,"width":793,"height":11}},{"id":"b6d2921b-3045-46c9-b425-692c03cfd7be","block_type":"box","text":"custody, accounting agent and audit services with the same or with affiliates of the same service providers that","page_number":22,"box":{"x":69,"y":181,"width":797,"height":11}},{"id":"7c39a782-cf26-4a62-b4c3-429f53a79426","block_type":"box","text":"provide those services to the Fund. The financial statements of the Subsidiary will be consolidated with the Fund’s","page_number":22,"box":{"x":70,"y":196,"width":817,"height":11}},{"id":"6d519f45-4006-4d1e-a524-b0ec882f67b6","block_type":"box","text":"financial statements in the Fund’s annual and semi-annual repor ts. The Fund’s Annual and Semi-Annual Financial","page_number":22,"box":{"x":68,"y":211,"width":808,"height":11}},{"id":"4c5a1e8e-9eb0-4099-86b8-e02d19dd2684","block_type":"box","text":"Statements and Additional Information are filed with the SEC on Form N-CSR and are provided without charge upon","page_number":22,"box":{"x":69,"y":226,"width":819,"height":11}},{"id":"d1f8a6ad-8053-44a7-aa82-5352b7892a96","block_type":"box","text":"request as indicated on the front cover of this SAI. The Subsidiary is not registered under the Investment Company","page_number":22,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"78cc4895-f428-4e3e-b915-6a5f61c341d9","block_type":"box","text":"Act, and, unless otherwise noted in the Fund’s prospectus or this SAI, is not subject to all the investor protections of","page_number":22,"box":{"x":68,"y":256,"width":837,"height":11}},{"id":"5b0b8aeb-fbcd-4ef8-8ea5-2b1c9bb5fccc","block_type":"box","text":"the Investment Company Act. However, the Fund wholly owns and controls the Subsidiary, and the Fund and the","page_number":22,"box":{"x":68,"y":272,"width":797,"height":11}},{"id":"af7bab67-25d3-4c1c-bf96-846af7422695","block_type":"box","text":"Subsidiary are both managed by BlackRock, making it unlikely that the Subsidiary will take action contrary to the","page_number":22,"box":{"x":69,"y":287,"width":803,"height":11}},{"id":"1fb5ec5f-faca-4b95-a9fb-a622a120a53c","block_type":"box","text":"interests of the Fund and its shareholders. The Fund’s Board of Trustees has oversight responsibility for the","page_number":22,"box":{"x":70,"y":302,"width":769,"height":11}},{"id":"adb40f64-56e7-4eb6-912d-ca35a6e4183d","block_type":"box","text":"investment activities of the Fund, including the Fund’s investment in the Subsidiary, and the Fund’s role as sole","page_number":22,"box":{"x":70,"y":317,"width":796,"height":11}},{"id":"1674650a-e1a6-486c-bdde-c0ac1e5ed684","block_type":"box","text":"shareholder of the Subsidiary. As noted above, the Subsidiary will be subject to the same investment restrictions and","page_number":22,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"fcebb09c-6dd8-4e24-b5d3-f6a7ded20a15","block_type":"box","text":"limitations as the Fund. The Subsidiary is managed pursuant to compliance policies and procedures that are the","page_number":22,"box":{"x":70,"y":347,"width":801,"height":11}},{"id":"a410a5ef-4fb7-4f3c-9e96-b5cc010011c8","block_type":"box","text":"same, in all material respects, as the policies and procedures adopted by the Fund. In addition, changes in the laws","page_number":22,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"e7c08346-0769-4ff5-a828-401a434ce026","block_type":"box","text":"of the United States and/or the Cayman Islands could result in the inability of the Fund, the Fund and/or the","page_number":22,"box":{"x":69,"y":377,"width":774,"height":11}},{"id":"367f4559-3956-476f-a3d8-991380e7a50d","block_type":"box","text":"Subsidiary to operate as described in the Fund’s prospectus and this SAI and could adversely affect the Fund. For","page_number":22,"box":{"x":69,"y":392,"width":813,"height":12}},{"id":"4e2df035-8123-4d74-9693-6118ed4bd270","block_type":"box","text":"example, the Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty,","page_number":22,"box":{"x":69,"y":408,"width":796,"height":11}},{"id":"94581720-8c5f-4a8f-a134-2ae61cf7465b","block_type":"box","text":"inheritance tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary","page_number":22,"box":{"x":70,"y":423,"width":830,"height":11}},{"id":"4e89949a-a970-4c37-91a8-9218fc2235bf","block_type":"box","text":"must pay Cayman Islands taxes, Fund shareholders would likely suffer decreased investment returns.","page_number":22,"box":{"x":69,"y":438,"width":724,"height":11}},{"id":"ac41c971-135a-4156-9b31-1e3b94224015","block_type":"box","text":"The Fund, as a “regulated investment company” under the tax rules, is required to realize at least 90 percent of","page_number":22,"box":{"x":101,"y":460,"width":801,"height":12}},{"id":"800c6d91-b10b-4e26-844a-a0fb839c3270","block_type":"box","text":"its annual gross income from investment-related sources, specifically from dividends, interest, proceeds from","page_number":22,"box":{"x":70,"y":475,"width":779,"height":12}},{"id":"af62a4ef-aa05-4fe3-9ee7-0756e68915ac","block_type":"box","text":"securities lending, gains from the sales of stocks, securities and foreign currencies, other income (including, but not","page_number":22,"box":{"x":69,"y":491,"width":831,"height":11}},{"id":"c11ac442-53e2-4d67-a998-6356094341d1","block_type":"box","text":"limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such","page_number":22,"box":{"x":70,"y":506,"width":824,"height":11}},{"id":"e862a1f0-385d-4e9b-aaeb-82c689931440","block_type":"box","text":"stock, securities or currencies, or cer tain types of publicly traded par tnerships (referred to as qualifying income). The","page_number":22,"box":{"x":69,"y":521,"width":835,"height":11}},{"id":"bd98145c-7bee-4ec4-a260-9ddb7fe91917","block_type":"box","text":"Fund, through its investment in the Fund, invests in commodity-related instruments indirectly through the Subsidiary","page_number":22,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"17cf0896-7afa-426e-9e84-89b46e6ed216","block_type":"box","text":"because direct investments by a regulated investment company in commodity-related instruments generally do not,","page_number":22,"box":{"x":69,"y":551,"width":819,"height":11}},{"id":"36358a12-e1a8-45b3-9e05-74fe0e06e72c","block_type":"box","text":"under published IRS rulings, produce qualifying income. The Fund expects its income with respect to the Subsidiary","page_number":22,"box":{"x":69,"y":566,"width":823,"height":11}},{"id":"e5417ca3-faad-49d6-a6f4-2960c8ba0744","block_type":"box","text":"to be qualifying income. However, in the future, if the IRS issues regulations or other guidance, or Congress enacts","page_number":22,"box":{"x":68,"y":581,"width":820,"height":12}},{"id":"540072ca-bbb7-48a7-b9f6-30b0a23a6560","block_type":"box","text":"legislation limiting the circumstances in which the Fund’s income with respect to the Subsidiary will be considered","page_number":22,"box":{"x":70,"y":597,"width":813,"height":11}},{"id":"0a51cd8e-1be0-4e0f-9957-819c624e855b","block_type":"box","text":"“qualifying income,” the Fund might be required to make changes to its operations, which may reduce the Fund’s","page_number":22,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"8b553233-aa07-47ab-9a11-bd2104b961b0","block_type":"box","text":"ability to gain investment exposure to commodities. Fund shareholders may also experience adverse tax","page_number":22,"box":{"x":69,"y":627,"width":742,"height":11}},{"id":"de0c02c5-dec5-453b-97ad-8d1d108f4046","block_type":"box","text":"consequences in such circumstances.","page_number":22,"box":{"x":69,"y":642,"width":271,"height":11}},{"id":"8a179438-616d-4376-a5ca-cc17af5da94a","block_type":"box","text":"The Subsidiary will not be subject to U.S. federal income tax. It will, however, be considered a controlled foreign","page_number":22,"box":{"x":101,"y":664,"width":797,"height":12}},{"id":"91d1fba3-938e-4b98-bcad-2b6cf3dc3467","block_type":"box","text":"corporation, and the Fund will be required to include as income annually amounts earned by the Subsidiary during","page_number":22,"box":{"x":69,"y":680,"width":811,"height":11}},{"id":"866a460d-74fc-4052-951f-35326aac8f42","block_type":"box","text":"that year, whether or not the Subsidiary distributes such amounts to the Fund. (Previously taxed income will not,","page_number":22,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"9982316a-b09e-43ba-847c-5ace97290eae","block_type":"box","text":"however, be taxable again when distributed.) Fur thermore, the requirement for the Fund to distribute net investment","page_number":22,"box":{"x":69,"y":710,"width":826,"height":11}},{"id":"0d696b79-6e5b-4e88-9e98-dd7e7a230092","block_type":"box","text":"income, if any, and net realized capital gain, if any, at least annually, will apply to such Subsidiary income, whether or","page_number":22,"box":{"x":70,"y":725,"width":835,"height":11}},{"id":"1a0e2b6d-fc7a-4cda-b023-0a5c6898a521","block_type":"box","text":"not the Subsidiary makes a distribution to the Fund during the taxable year. If the Subsidiary incurs net losses in any","page_number":22,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"e2c787fd-41dc-4721-a9a5-057282322166","block_type":"box","text":"year, such losses will not offset the Fund’s income or gains nor carryforward to future years.","page_number":22,"box":{"x":68,"y":755,"width":661,"height":11}},{"id":"da2ba286-deeb-4b6f-aa07-ff715af8c683","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":22,"box":{"x":102,"y":778,"width":246,"height":11}},{"id":"e599a81b-fea2-44b8-94ee-20c6e783420e","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":22,"box":{"x":355,"y":778,"width":530,"height":11}},{"id":"346cde7a-76c6-470d-a9f9-0eeb921d6d85","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":22,"box":{"x":69,"y":793,"width":828,"height":11}},{"id":"8ff9b890-d598-446e-a35b-8b44d58706aa","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":22,"box":{"x":69,"y":808,"width":837,"height":11}},{"id":"0c825a54-1080-4250-9f85-fac1fcf52538","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments. To the","page_number":22,"box":{"x":69,"y":823,"width":819,"height":12}},{"id":"7aca5607-6d72-4f95-a215-582f63816dc1","block_type":"box","text":"extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market itself as","page_number":22,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"c94806b3-5d5e-449e-883a-0b124032c2a1","block_type":"box","text":"a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock has claimed an exclusion from","page_number":22,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"676d627d-2d87-4c73-8321-800994ef6ff8","block_type":"box","text":"the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule","page_number":22,"box":{"x":68,"y":869,"width":812,"height":11}},{"id":"08598d35-3452-42b9-be02-afceceaac847","block_type":"box","text":"4.5 under the CEA. BlackRock is not, therefore, subject to registration or regulation as a “commodity pool operator”","page_number":22,"box":{"x":69,"y":884,"width":825,"height":11}},{"id":"5fe2aa50-5784-4c9f-86d4-4e8eafd37ab8","block_type":"box","text":"under the CEA in respect of the Fund.","page_number":22,"box":{"x":69,"y":899,"width":265,"height":11}},{"id":"9d72c8a6-b0ca-4d70-9df7-31d4da462ce3","block_type":"box","text":"I-6","page_number":22,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e1d7e2bb-67c4-4ed3-b22f-eb82e393b735","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ff0e205-00e4-4f2a-8540-c13ff1e17618","block_type":"box","text":"II. Investment Restrictions","page_number":23,"box":{"x":69,"y":45,"width":194,"height":9}},{"id":"a7e2fb05-164f-4dd2-a6f0-ba071b869e06","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":23,"box":{"x":101,"y":67,"width":800,"height":12}},{"id":"782116e5-9b10-4b7a-a519-a979fc45d944","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":23,"box":{"x":69,"y":82,"width":825,"height":12}},{"id":"bf963041-1cae-4137-9e01-b046399f6986","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":23,"box":{"x":69,"y":98,"width":809,"height":11}},{"id":"b17b0230-bffd-43e8-ba96-c537d041c1a0","block_type":"box","text":"Company Act of 1940, as amended (the “Investment Company Act”) means the lesser of (i) 67% of the shares","page_number":23,"box":{"x":69,"y":113,"width":788,"height":11}},{"id":"9b839a91-ee6f-4e6f-a084-8034f38a1c5d","block_type":"box","text":"represented at a meeting at which more than 50% of the outstanding shares are represented or (ii) more than 50% of","page_number":23,"box":{"x":69,"y":128,"width":839,"height":11}},{"id":"bd36811f-d2a9-4dcc-b2f9-93e1fbf06065","block_type":"box","text":"the outstanding shares).","page_number":23,"box":{"x":68,"y":143,"width":174,"height":11}},{"id":"36ddd8d3-ac50-472b-b3a7-7f6a8de78c1e","block_type":"box","text":"Under these fundamental investment restrictions, the Fund may not:","page_number":23,"box":{"x":102,"y":166,"width":485,"height":11}},{"id":"06ba8dc4-782d-4129-804b-0aeab28dd498","block_type":"box","text":"1. Concentrate its investments in a par ticular industry, as that term is used in the Investment Company Act.","page_number":23,"box":{"x":102,"y":188,"width":770,"height":11}},{"id":"9e6151eb-43e7-422a-9314-d260355f3446","block_type":"box","text":"2. Borrow money, except as permitted under the Investment Company Act.","page_number":23,"box":{"x":102,"y":211,"width":528,"height":11}},{"id":"cb40651f-2c7b-49b5-bdce-29f431aa60f8","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":23,"box":{"x":102,"y":234,"width":694,"height":11}},{"id":"c752b521-f2d8-467f-b423-d98bf459c29a","block_type":"box","text":"4. Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are","page_number":23,"box":{"x":101,"y":257,"width":802,"height":10}},{"id":"91ec26c9-6617-4dcf-8bd4-6a1a26fbb7f0","block_type":"box","text":"secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mor tgage-related","page_number":23,"box":{"x":69,"y":271,"width":835,"height":12}},{"id":"c3e7a77f-c353-43dd-ace3-cb2ed235e684","block_type":"box","text":"securities and securities of issuers engaged in the real estate business, and the Fund may purchase and hold real","page_number":23,"box":{"x":69,"y":286,"width":817,"height":12}},{"id":"18a7906f-d591-495d-86db-26684f443705","block_type":"box","text":"estate as a result of the ownership of securities or other instruments.","page_number":23,"box":{"x":69,"y":302,"width":497,"height":11}},{"id":"fc683865-68b4-4e1d-958a-1ee41b2652de","block_type":"box","text":"5. Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the Fund","page_number":23,"box":{"x":102,"y":324,"width":785,"height":11}},{"id":"7e3d6c14-c6b4-42ed-8130-baa0ae9bea69","block_type":"box","text":"may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":23,"box":{"x":69,"y":340,"width":588,"height":11}},{"id":"d56f4c1f-645c-4172-ac5f-ad69c2d7ea45","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.","page_number":23,"box":{"x":102,"y":362,"width":787,"height":11}},{"id":"ca5a8d01-2513-4d8d-9b89-28f9e8a934ff","block_type":"box","text":"7. Make loans to the extent prohibited by the Investment Company Act.","page_number":23,"box":{"x":102,"y":385,"width":506,"height":11}},{"id":"1f82f30b-1b44-4a24-b595-085b34ce11ba","block_type":"box","text":"8. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":23,"box":{"x":101,"y":407,"width":730,"height":12}},{"id":"5ec9e19d-a60b-4026-9ca3-5df4e284582e","block_type":"box","text":"Investment Company Act.","page_number":23,"box":{"x":70,"y":423,"width":178,"height":11}},{"id":"09e62a03-26cd-4c79-8ea8-eba3a3022405","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":23,"box":{"x":70,"y":453,"width":494,"height":11}},{"id":"18c0b518-e790-44ae-b53b-a7792c17915c","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":23,"box":{"x":101,"y":475,"width":799,"height":12}},{"id":"4f7506dd-2257-4ed0-b863-5668c08f269e","block_type":"box","text":"subject to change without shareholder approval.","page_number":23,"box":{"x":69,"y":491,"width":341,"height":11}},{"id":"b35be4ce-444e-4954-b881-734a6b8bfc00","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":23,"box":{"x":101,"y":513,"width":796,"height":12}},{"id":"493ed80f-1911-4df0-b300-71686f7c30e4","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":23,"box":{"x":68,"y":528,"width":811,"height":12}},{"id":"a481ac53-3186-449a-a84b-58b374a73e45","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":23,"box":{"x":68,"y":543,"width":833,"height":12}},{"id":"fad3f400-87dc-4de4-b4af-e4f9b0f017f7","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":23,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"fed3e60b-e0eb-4d26-9976-eec2ad8e4c6a","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":23,"box":{"x":69,"y":574,"width":815,"height":11}},{"id":"2c87d7ef-1a7e-4b72-9e6c-87ba81171939","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":23,"box":{"x":70,"y":589,"width":813,"height":11}},{"id":"22ecc4c9-ae1d-444b-b165-8527f172b306","block_type":"box","text":"securities of the U.S. Government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":23,"box":{"x":69,"y":604,"width":823,"height":11}},{"id":"4283fe59-8467-4d4d-a6bd-a7c664a8f857","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":23,"box":{"x":69,"y":619,"width":809,"height":11}},{"id":"e77e55d5-33af-4574-9f2b-28440b98dac7","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":23,"box":{"x":69,"y":634,"width":772,"height":12}},{"id":"8f296375-9929-43e3-91ae-c920906ba18d","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":23,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"63a3e7f8-d7ca-44c1-8dbb-e52317e9706c","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":23,"box":{"x":67,"y":664,"width":829,"height":12}},{"id":"5206e350-971d-4d5d-abee-c6581b798ac6","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":23,"box":{"x":69,"y":680,"width":805,"height":11}},{"id":"1ca05322-31bf-4de7-8709-02ef6aa13e4d","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":23,"box":{"x":69,"y":695,"width":840,"height":11}},{"id":"d3ad3d86-375f-4299-b799-7737d89f4cbf","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":23,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"6d2edd3e-c802-436f-ba88-3d867c6e20a6","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":23,"box":{"x":70,"y":725,"width":807,"height":11}},{"id":"d08a9aa5-7891-4fff-a519-c1aa6c5ce3cb","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":23,"box":{"x":70,"y":740,"width":438,"height":11}},{"id":"a72da69f-c1e5-4758-be38-c4d136243337","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th above, the Investment Company Act","page_number":23,"box":{"x":101,"y":763,"width":805,"height":11}},{"id":"65747000-b089-4b8d-882f-27abc5d21a6b","block_type":"box","text":"permits the Fund to borrow money in amounts of up to onethird of the Fund’s total assets from banks for any","page_number":23,"box":{"x":70,"y":778,"width":779,"height":11}},{"id":"44dc168e-de1c-4295-acdf-125924f10fc5","block_type":"box","text":"purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary purposes. (The","page_number":23,"box":{"x":70,"y":793,"width":836,"height":11}},{"id":"2fdc5de3-3781-4a73-bdce-a35eb47fa0e7","block_type":"box","text":"Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing, the Investment","page_number":23,"box":{"x":70,"y":808,"width":816,"height":11}},{"id":"2b53d3b1-7255-466a-96fc-75e4788aeb70","block_type":"box","text":"Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the amount of its","page_number":23,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"33a39dca-07ba-43c4-b5d2-ad57ff55eb86","block_type":"box","text":"borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including amounts borrowed),","page_number":23,"box":{"x":69,"y":838,"width":824,"height":12}},{"id":"edcffa31-b55f-48f2-a439-77648d00a5d7","block_type":"box","text":"minus liabilities other than borrowings, bears to the aggregate amount of all borrowings. Borrowing money to","page_number":23,"box":{"x":69,"y":853,"width":775,"height":12}},{"id":"4b3a3d63-d7db-45a2-830e-c841cb05842f","block_type":"box","text":"increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments, such as reverse","page_number":23,"box":{"x":70,"y":869,"width":801,"height":11}},{"id":"f808b56f-a57d-43d1-b4b0-605911a81b54","block_type":"box","text":"repurchase agreements, may be considered to be borrowings or involve leverage and thus are subject to the","page_number":23,"box":{"x":69,"y":884,"width":772,"height":11}},{"id":"fc1f7473-30a6-46c9-a95c-153f8cefa5b0","block_type":"box","text":"Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company Act, when the","page_number":23,"box":{"x":70,"y":899,"width":810,"height":11}},{"id":"fb97979a-a78d-45b2-a743-5483a3363b77","block_type":"box","text":"I-7","page_number":23,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"9594839d-de9a-45ec-acb4-5ab800c11f27","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b973706e-0e85-4b63-b8aa-764d554df82a","block_type":"box","text":"Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may either (i) maintain","page_number":24,"box":{"x":70,"y":45,"width":828,"height":11}},{"id":"aaae0cb2-34b9-492c-8382-dc67f66a9552","block_type":"box","text":"asset coverage of at least 300% with respect to such transactions and any other borrowings in the aggregate, or","page_number":24,"box":{"x":69,"y":60,"width":803,"height":11}},{"id":"14fbd904-f24e-4b41-84e8-b7c9af18829f","block_type":"box","text":"(ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such","page_number":24,"box":{"x":69,"y":75,"width":746,"height":11}},{"id":"0e8921db-2936-4cd4-8780-4387a156284a","block_type":"box","text":"transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":24,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"cf583769-c362-47ec-b099-f691dd32baa8","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":24,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"25f67466-3c62-404f-8c1e-65b391332ea5","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":24,"box":{"x":69,"y":120,"width":643,"height":12}},{"id":"1a048458-c768-462c-817d-5cfd33e425d4","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":24,"box":{"x":101,"y":143,"width":788,"height":11}},{"id":"6f0f7993-a3e0-4701-8a19-eba2a3d84e25","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":24,"box":{"x":68,"y":158,"width":840,"height":11}},{"id":"c76183e5-6c17-4681-9819-1643a578cdd4","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits a fund to have underwriting","page_number":24,"box":{"x":70,"y":173,"width":808,"height":11}},{"id":"25a4e5e3-5acc-4f3d-9e8a-6593ca194076","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":24,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"97a2571c-9432-4431-95ea-803d66bd80b6","block_type":"box","text":"amount of the fund’s underwriting commitments, when added to the value of the fund’s investments in issuers where","page_number":24,"box":{"x":69,"y":203,"width":838,"height":12}},{"id":"231291e3-0b1d-4907-bf4e-89c597fe2a11","block_type":"box","text":"the fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25% cap. A","page_number":24,"box":{"x":68,"y":218,"width":818,"height":12}},{"id":"f52f6569-1860-4d9f-9c9d-c35766a2457f","block_type":"box","text":"fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered to be","page_number":24,"box":{"x":68,"y":234,"width":826,"height":11}},{"id":"bd79d4e9-f4b9-47a3-b83c-b876e110bc63","block_type":"box","text":"an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed that","page_number":24,"box":{"x":69,"y":249,"width":822,"height":11}},{"id":"2bb308b1-0256-4f25-bcd1-72b6979fd9bf","block_type":"box","text":"the application of the Securities Act provisions described above would cause a fund to be engaged in the business of","page_number":24,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"84f2436f-3931-42ff-9ce6-ade62d331a12","block_type":"box","text":"underwriting, the policy in (5) above will be interpreted not to prevent a fund from engaging in transactions involving","page_number":24,"box":{"x":69,"y":279,"width":823,"height":11}},{"id":"7b01cf27-4034-4541-a331-8325edfe2f95","block_type":"box","text":"the acquisition or disposition of por tfolio securities, regardless of whether the fund may be considered to be an","page_number":24,"box":{"x":68,"y":294,"width":796,"height":11}},{"id":"e2f123be-5aec-4110-9ee9-d840e253ce15","block_type":"box","text":"underwriter under the Securities Act or is otherwise engaged in the underwriting business to the extent permitted by","page_number":24,"box":{"x":69,"y":309,"width":830,"height":11}},{"id":"67230438-3010-47e1-9775-8fb3d839fa6f","block_type":"box","text":"applicable law.","page_number":24,"box":{"x":69,"y":325,"width":102,"height":10}},{"id":"cdedbd28-a63a-40df-abe4-1be2812ec670","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":24,"box":{"x":101,"y":347,"width":778,"height":11}},{"id":"a7dc4208-e4bb-4b8a-b180-091261bde52b","block_type":"box","text":"does not prohibit the fund from making loans (including lending its securities); however, Commission staff","page_number":24,"box":{"x":69,"y":362,"width":756,"height":11}},{"id":"fc28b523-6cf0-43d0-9a46-42f78f0e1f54","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":24,"box":{"x":70,"y":377,"width":807,"height":12}},{"id":"0b10a0e3-df34-4662-b540-cdcdc2b1d438","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":24,"box":{"x":69,"y":392,"width":784,"height":12}},{"id":"c6d37aaa-4b81-4305-acc3-23e278e3fe20","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":24,"box":{"x":69,"y":407,"width":791,"height":12}},{"id":"ba9b3a07-a100-46e4-8a69-0e158ac7e6e4","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":24,"box":{"x":70,"y":423,"width":803,"height":11}},{"id":"048b5b95-8c5c-4e72-969b-1981f8e46f93","block_type":"box","text":"loans.","page_number":24,"box":{"x":70,"y":438,"width":40,"height":9}},{"id":"39e428a1-f531-4257-b343-e6f54be39961","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":24,"box":{"x":101,"y":460,"width":777,"height":12}},{"id":"94429896-e647-474b-9cf8-e56f7d8d409f","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":24,"box":{"x":70,"y":475,"width":751,"height":12}},{"id":"9dae18d3-f91d-4c01-bdfe-1be364633edc","block_type":"box","text":"Government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":24,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"3cace990-1941-4f64-a2d0-31786fc0c39f","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":24,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"15b23934-31a6-4388-b7cc-ede10c3f13b6","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":24,"box":{"x":69,"y":521,"width":781,"height":11}},{"id":"9d7ecf29-59b4-4707-9105-1c2334949c2c","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":24,"box":{"x":69,"y":536,"width":759,"height":11}},{"id":"2516787c-1c55-4cb3-b1df-b76fbd757ed3","block_type":"box","text":"Investment Company Act, the Fund cannot change its classification from diversified to non-diversified without","page_number":24,"box":{"x":70,"y":551,"width":774,"height":11}},{"id":"5b3a32cb-abfd-46a9-ba2f-b55cc4b7a5f4","block_type":"box","text":"shareholder approval.","page_number":24,"box":{"x":69,"y":566,"width":153,"height":11}},{"id":"19c7df31-f214-4eb4-b966-e9fbf0912d7f","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":24,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"3f82d2c8-9774-41d9-93e8-0452ac90f5b8","block_type":"box","text":"approval, the Fund may not:","page_number":24,"box":{"x":69,"y":604,"width":197,"height":11}},{"id":"7dfd40c5-1347-491c-8395-741e44446adf","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":24,"box":{"x":102,"y":627,"width":742,"height":11}},{"id":"58e9c28a-7151-46e7-b710-6f190e9260dd","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":24,"box":{"x":69,"y":642,"width":759,"height":11}},{"id":"346eca16-161f-4a52-a959-60126567e489","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":24,"box":{"x":70,"y":657,"width":829,"height":11}},{"id":"da4d787b-ac53-4773-8f6f-ddce64d7c67b","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":24,"box":{"x":70,"y":672,"width":808,"height":11}},{"id":"97f3bfd7-eed9-4919-a3cb-58908f0a93dc","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":24,"box":{"x":69,"y":687,"width":763,"height":11}},{"id":"cf02c1ff-6ce9-4a0f-b348-8d36ed75c282","block_type":"box","text":"b. Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":24,"box":{"x":102,"y":710,"width":765,"height":11}},{"id":"ae24bd3e-a5bb-4c0c-ac9a-6fc6336bbc52","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":24,"box":{"x":69,"y":725,"width":510,"height":11}},{"id":"d0da0a37-372a-42d8-9f91-51d6c5fc67c2","block_type":"box","text":"Unless otherwise indicated, all limitations under the Fund’s fundamental or non-fundamental investment","page_number":24,"box":{"x":102,"y":748,"width":744,"height":10}},{"id":"f3c7137e-e612-4dcc-a776-418073d31efb","block_type":"box","text":"restrictions apply only at the time that a transaction is under taken. Any change in the percentage of the Fund’s","page_number":24,"box":{"x":69,"y":763,"width":791,"height":11}},{"id":"c658c6fd-6f58-47b8-adda-d39d75535d54","block_type":"box","text":"assets invested in cer tain securities or other instruments resulting from market fluctuations or other changes in the","page_number":24,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"077ec495-689b-4ad6-9aeb-2d8d7751c99b","block_type":"box","text":"Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":24,"box":{"x":70,"y":793,"width":780,"height":11}},{"id":"d60f85da-4dba-4628-804a-b4443fc4e3a0","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":24,"box":{"x":70,"y":808,"width":642,"height":11}},{"id":"e924c312-f8f6-4cdf-ba92-ce31f068b2fa","block_type":"box","text":"The Subsidiary will follow the Fund’s fundamental and non-fundamental investment restrictions, described above,","page_number":24,"box":{"x":101,"y":831,"width":807,"height":11}},{"id":"2518a01f-b825-4786-8baa-67914d926a4d","block_type":"box","text":"with respect to its investments.","page_number":24,"box":{"x":68,"y":846,"width":224,"height":11}},{"id":"839c85ab-a145-4477-b629-322a47e3a1db","block_type":"box","text":"I-8","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"a42f377f-fc0a-40cf-8cde-d747b10583c4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ccfe8289-b8ed-4120-b1b1-139b98c8d8df","block_type":"box","text":"III. Information on Trustees and Officers","page_number":25,"box":{"x":69,"y":45,"width":290,"height":9}},{"id":"736c6e51-e4fc-4860-9285-62b6256bc28e","block_type":"box","text":"The Board consists of nine individuals (each a “Trustee”), seven of whom are not “interested persons” of the","page_number":25,"box":{"x":101,"y":67,"width":780,"height":11}},{"id":"4b918c2e-44db-494f-a2a4-c96cc3b7f16e","block_type":"box","text":"Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment companies","page_number":25,"box":{"x":68,"y":82,"width":833,"height":12}},{"id":"40e763a9-6342-4694-ada9-7c63b2526874","block_type":"box","text":"advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock Multi-Asset","page_number":25,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"9a147d6b-2dc7-4bc9-aa58-7cc394ce5ee7","block_type":"box","text":"Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund Complex”). The","page_number":25,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"1b2f139e-7faa-49d7-a503-e24f93b3b9da","block_type":"box","text":"Fund is included in the BlackRock Fund Complex referred to as the BlackRock Fixed-Income Complex. The Trustees","page_number":25,"box":{"x":70,"y":128,"width":817,"height":11}},{"id":"0fab9ef6-52ef-4e8e-9471-fd8fea2ae350","block_type":"box","text":"also oversee as board members the operations of the other open-end and closed-end registered investment","page_number":25,"box":{"x":69,"y":143,"width":769,"height":11}},{"id":"8e0c1c7c-6d59-4bd2-9d91-850a9cf1eac5","block_type":"box","text":"companies included in the BlackRock Fixed-Income Complex.","page_number":25,"box":{"x":69,"y":158,"width":431,"height":11}},{"id":"28e88ce3-6645-451b-97df-dcc69d3e7ef5","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Fund. The Chair of the Board and the","page_number":25,"box":{"x":101,"y":181,"width":789,"height":11}},{"id":"6874f69e-ccd1-4dbf-bbb6-c5ec6388ea53","block_type":"box","text":"Chief Executive Officer are different people. Not only is the Chair of the Board an Independent Trustee, but also the","page_number":25,"box":{"x":69,"y":196,"width":823,"height":11}},{"id":"bf5b2a1a-5c50-4d27-884a-218cce69b62e","block_type":"box","text":"Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The Board has six standing","page_number":25,"box":{"x":69,"y":211,"width":781,"height":11}},{"id":"e80edba0-0249-4f5b-99b6-e11a39e79feb","block_type":"box","text":"Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a","page_number":25,"box":{"x":69,"y":226,"width":750,"height":11}},{"id":"a91d4cf0-4270-48fc-adde-5816f1cec426","block_type":"box","text":"Per formance Oversight Committee, a Securities Lending Committee and an Executive Committee. The role of the","page_number":25,"box":{"x":69,"y":241,"width":803,"height":11}},{"id":"4b2aec8a-472c-49db-becb-463496d10245","block_type":"box","text":"Chair of the Board is to preside over all meetings of the Board and to act as a liaison with service providers, officers,","page_number":25,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"c5f36e42-f091-4570-8de8-1cb00095c805","block_type":"box","text":"attorneys, and other Trustees between meetings. The Chair of each Committee per forms a similar role with respect","page_number":25,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"7c33bbab-a3db-465c-a8dd-b0ed1975dc36","block_type":"box","text":"to the Committee. The Chair of the Board or a Committee may also per form such other functions as may be","page_number":25,"box":{"x":68,"y":286,"width":770,"height":12}},{"id":"5444654d-9e34-430c-b2a4-742d68d65308","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":25,"box":{"x":69,"y":302,"width":809,"height":11}},{"id":"4510db19-d7ed-428d-a224-e02146b778e3","block_type":"box","text":"presence of the Fund’s management, in executive sessions or with other service providers to the Fund. The Board","page_number":25,"box":{"x":70,"y":317,"width":812,"height":11}},{"id":"d5f0c944-a5f7-4306-9657-e88f08618d7d","block_type":"box","text":"has regular meetings five times a year, including a meeting to consider the approval of the Fund’s investment","page_number":25,"box":{"x":69,"y":332,"width":780,"height":11}},{"id":"090c6275-094b-4615-8230-3eae90dbf6e7","block_type":"box","text":"management agreement, and, if necessary, may hold special meetings before its next regular meeting. The Audit","page_number":25,"box":{"x":69,"y":347,"width":805,"height":11}},{"id":"fc61cb00-b59c-4cba-8513-950227f72f2a","block_type":"box","text":"Committee, the Governance and Nominating Committee, the Compliance Committee, the Per formance Oversight","page_number":25,"box":{"x":69,"y":362,"width":801,"height":11}},{"id":"8efd37a1-9d6d-43bb-ab01-d001e6f88cc3","block_type":"box","text":"Committee and the Securities Lending Committee each meets regularly and the Executive Committee meets on an ad","page_number":25,"box":{"x":69,"y":377,"width":837,"height":12}},{"id":"d02a0414-dc60-4c08-a667-1c04fe2a3146","block_type":"box","text":"hoc basis to conduct the oversight functions delegated to that Committee by the Board and repor ts its findings to the","page_number":25,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"ca2b4272-52ad-497f-9b9e-c3c1323161c2","block_type":"box","text":"Board. The Board and each standing Committee conduct annual assessments of their oversight function and","page_number":25,"box":{"x":70,"y":407,"width":773,"height":12}},{"id":"513876cc-fe3e-44fc-9c95-0c81a96dfe13","block_type":"box","text":"structure. The Board has determined that the Board’s leadership structure is appropriate because it allows the Board","page_number":25,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"1a3b02dd-08c9-46a8-8586-9938e6e5d51f","block_type":"box","text":"to exercise independent judgment over management and to allocate areas of responsibility among Committees and","page_number":25,"box":{"x":68,"y":438,"width":823,"height":11}},{"id":"c9d63fd6-962c-41c9-afd2-0f66d739fca8","block_type":"box","text":"the Board to enhance oversight.","page_number":25,"box":{"x":68,"y":453,"width":227,"height":11}},{"id":"23dfe434-683a-44e3-888d-55f09b0cf062","block_type":"box","text":"The Board decided to separate the roles of Chief Executive Officer from the Chair because it believes that having","page_number":25,"box":{"x":101,"y":475,"width":805,"height":12}},{"id":"7301c3e4-48cf-4df8-b2c5-1ef934944502","block_type":"box","text":"an independent Chair:","page_number":25,"box":{"x":69,"y":491,"width":155,"height":11}},{"id":"a2d28d07-e6e1-4da1-8e1a-d7535e00bdd9","block_type":"box","text":"•","page_number":25,"box":{"x":102,"y":514,"width":6,"height":4}},{"id":"6e65284d-2c72-4c19-96ab-bbc8bed97f89","block_type":"box","text":"increases the independent oversight of the Fund and enhances the Board’s objective evaluation of the Chief","page_number":25,"box":{"x":135,"y":511,"width":771,"height":11}},{"id":"414ca314-a52f-40c2-88e9-b6a928d776c8","block_type":"box","text":"Executive Officer;","page_number":25,"box":{"x":135,"y":526,"width":121,"height":10}},{"id":"234713d5-6ca0-4a93-85c5-226e4491c555","block_type":"box","text":"•","page_number":25,"box":{"x":102,"y":549,"width":6,"height":5}},{"id":"bdcb7b50-a6b6-40a6-98a2-15de392a5a98","block_type":"box","text":"allows the Chief Executive Officer to focus on the Fund’s operations instead of Board administration;","page_number":25,"box":{"x":134,"y":546,"width":717,"height":11}},{"id":"90a6e59f-dfb7-4b90-9d46-a4389ebfe36a","block_type":"box","text":"•","page_number":25,"box":{"x":102,"y":569,"width":6,"height":5}},{"id":"01a530fd-283f-4963-8428-aa83c61263be","block_type":"box","text":"provides greater oppor tunities for direct and independent communication between shareholders and the","page_number":25,"box":{"x":135,"y":566,"width":742,"height":11}},{"id":"4743d077-dd70-416a-9d13-8a74aecdb264","block_type":"box","text":"Board; and","page_number":25,"box":{"x":135,"y":582,"width":76,"height":10}},{"id":"216344f9-93b2-4c6d-bd54-459fff88335d","block_type":"box","text":"•","page_number":25,"box":{"x":102,"y":604,"width":6,"height":5}},{"id":"242f8392-dd95-4951-b1eb-d81bd7ef5224","block_type":"box","text":"provides an independent spokesman for the Fund.","page_number":25,"box":{"x":135,"y":601,"width":356,"height":11}},{"id":"81169162-f196-43a4-a8dd-6d18aecf739b","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":25,"box":{"x":101,"y":624,"width":777,"height":11}},{"id":"481359f9-91a4-4322-bc0c-1c34bd60244c","block_type":"box","text":"overseeing the Manager, sub-advisers, other service providers, the operations of the Fund and associated risks in","page_number":25,"box":{"x":69,"y":639,"width":811,"height":12}},{"id":"efe8b231-5e37-451f-8fbb-d9333ce7a7d4","block_type":"box","text":"accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s char ter,","page_number":25,"box":{"x":69,"y":654,"width":826,"height":12}},{"id":"bf217529-008d-4996-b964-e538d8babe7b","block_type":"box","text":"and the Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s","page_number":25,"box":{"x":69,"y":670,"width":743,"height":11}},{"id":"4709bd12-6470-4921-a3c7-98a9b1541027","block_type":"box","text":"per formance, operations, and investment strategies and techniques. The Board also conducts reviews of the","page_number":25,"box":{"x":70,"y":685,"width":776,"height":11}},{"id":"d04b89f9-2419-4b5a-926c-0a8fff228c1a","block_type":"box","text":"Manager and its role in running the operations of the Fund.","page_number":25,"box":{"x":70,"y":700,"width":419,"height":11}},{"id":"b9e59909-1019-45a1-a7c3-eaa6fe4d921a","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager, sub-advisers or other","page_number":25,"box":{"x":102,"y":722,"width":793,"height":12}},{"id":"cf5b05c9-0001-4809-ada8-57ae00c8e0f1","block_type":"box","text":"service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":25,"box":{"x":69,"y":738,"width":787,"height":11}},{"id":"cb24b481-7abe-421b-8334-51dc61bcb0ed","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":25,"box":{"x":69,"y":753,"width":832,"height":11}},{"id":"363d3fc9-b04d-4be9-b6f8-92e53388ee8a","block_type":"box","text":"there are a number of risk management functions per formed by the Manager, sub-advisers or other service providers,","page_number":25,"box":{"x":68,"y":768,"width":839,"height":11}},{"id":"712d9402-5dd9-4ce4-805d-d6dc2934e054","block_type":"box","text":"as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight is par t of the","page_number":25,"box":{"x":69,"y":783,"width":789,"height":11}},{"id":"6bdd0978-e2dd-45b0-b66e-200b4f7acecd","block_type":"box","text":"Board’s general oversight of the Fund and is addressed as par t of various Board and Committee activities. The","page_number":25,"box":{"x":70,"y":798,"width":790,"height":11}},{"id":"8c520432-80a1-4949-a6e9-630c27fe34ad","block_type":"box","text":"Board, directly or through Committees, also reviews repor ts from, among others, management, the independent","page_number":25,"box":{"x":70,"y":813,"width":799,"height":11}},{"id":"f2d23833-5247-4f6c-8213-c4c97354c9e4","block_type":"box","text":"registered public accounting firm for the Fund, the Manager, sub-advisers and internal auditors for the Manager or its","page_number":25,"box":{"x":69,"y":828,"width":833,"height":12}},{"id":"cc691ff9-829c-4587-acf5-b6cf22dbe98a","block_type":"box","text":"affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s risk","page_number":25,"box":{"x":69,"y":843,"width":774,"height":12}},{"id":"6084d2e0-a537-46cc-b4a5-776faefd32ca","block_type":"box","text":"functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees and","page_number":25,"box":{"x":68,"y":858,"width":809,"height":12}},{"id":"7e94b26f-3592-48a9-afe1-887f047e93e5","block_type":"box","text":"facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities and","page_number":25,"box":{"x":68,"y":874,"width":818,"height":11}},{"id":"ccf9ff8e-f34d-42ec-be00-05bf9cbbf01a","block_type":"box","text":"associated risks. The Board has approved the appointment of a Chief Compliance Officer (“CCO”), who oversees the","page_number":25,"box":{"x":69,"y":889,"width":831,"height":11}},{"id":"bfdb3b4b-70cd-4461-8ae7-cd2a6faec106","block_type":"box","text":"implementation and testing of the Fund’s compliance program and repor ts regularly to the Board regarding","page_number":25,"box":{"x":70,"y":904,"width":760,"height":11}},{"id":"2353c047-6a9c-4f96-a689-5097b2ba4a4c","block_type":"box","text":"I-9","page_number":25,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e10c8b7b-bc11-4d98-8cdf-940e155fa6fb","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f19cbdb-7998-4832-b5d6-d1236f324ab9","block_type":"box","text":"compliance matters for the Fund and its service providers. The Independent Trustees have engaged independent","page_number":26,"box":{"x":69,"y":45,"width":804,"height":11}},{"id":"6f1c228c-0ca4-4873-a008-bc350b526311","block_type":"box","text":"legal counsel to assist them in per forming their oversight responsibilities.","page_number":26,"box":{"x":70,"y":60,"width":524,"height":11}},{"id":"90ac3077-ce62-448c-9ecf-4a1834de2968","block_type":"box","text":"Audit Committee.","page_number":26,"box":{"x":101,"y":83,"width":122,"height":8}},{"id":"1b3dc1d9-5da4-4646-9512-d531de57bb9d","block_type":"box","text":"The Board has a standing Audit Committee composed of Lorenzo A. Flores (Chair), J. Phillip","page_number":26,"box":{"x":229,"y":82,"width":651,"height":12}},{"id":"3ef23756-8e33-45f9-bcd4-34702057c611","block_type":"box","text":"Holloman and Ar thur P. Steinmetz, all of whom are Independent Trustees. The principal responsibilities of the Audit","page_number":26,"box":{"x":70,"y":98,"width":819,"height":11}},{"id":"40a1ecae-6987-438e-8842-90faaadad7c7","block_type":"box","text":"Committee are to assist the Board in fulfilling its oversight responsibilities relating to the accounting and financial","page_number":26,"box":{"x":69,"y":113,"width":810,"height":11}},{"id":"efe74a1c-c6f8-4d89-8763-d8568497930b","block_type":"box","text":"repor ting policies and practices of the Fund. The Audit Committee’s responsibilities include, without limitation:","page_number":26,"box":{"x":69,"y":128,"width":786,"height":11}},{"id":"d5cb9f96-a599-4469-8270-420d4bbe8c35","block_type":"box","text":"(i) approving, and recommending to the full Board for approval, the selection, retention, termination and","page_number":26,"box":{"x":69,"y":143,"width":739,"height":11}},{"id":"d4cb4bf9-2b38-46b1-9d44-2e1e17bc8a3a","block_type":"box","text":"compensation of the Fund’s independent registered public accounting firm (the “Independent Registered Public","page_number":26,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"d7ce18ed-954a-4668-999a-f9e500812598","block_type":"box","text":"Accounting Firm”) and evaluating the independence and objectivity of the Independent Registered Public Accounting","page_number":26,"box":{"x":68,"y":173,"width":824,"height":11}},{"id":"4d5d04ab-e7c1-45da-836a-a53b95971768","block_type":"box","text":"Firm; (ii) approving all audit engagement terms and fees for the Fund; (iii) reviewing the conduct and results of each","page_number":26,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"b7fe00fa-d442-4bd7-8600-8b24e9b7df67","block_type":"box","text":"audit; (iv) reviewing any issues raised by the Fund’s Independent Registered Public Accounting Firm or management","page_number":26,"box":{"x":69,"y":204,"width":824,"height":11}},{"id":"8da05d08-58be-4b8a-b5f0-8d9bb76a9dce","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund, its internal controls, and, as","page_number":26,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"533b753a-998d-427f-8a55-7ae2e9c610c8","block_type":"box","text":"appropriate, the internal controls of cer tain service providers and management’s response to any such issues;","page_number":26,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"52c79558-4bc9-4955-aea3-be48b1217f3a","block_type":"box","text":"(v) reviewing and discussing the Fund’s audited and unaudited financial statements and disclosure in the Fund’s","page_number":26,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"917853d4-3f84-4cba-bf4b-6c574d57b1d2","block_type":"box","text":"shareholder repor ts relating to the Fund’s per formance; (vi) assisting the Board’s responsibilities with respect to the","page_number":26,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"e87b6ea5-75e6-4dcf-acbc-06687c8dc654","block_type":"box","text":"internal controls of the Fund and its service providers with respect to accounting and financial matters; and","page_number":26,"box":{"x":70,"y":279,"width":764,"height":11}},{"id":"177be0c1-00cf-4354-adf7-d7b548cd80f7","block_type":"box","text":"(vii) resolving any disagreements between the Fund’s management and the Fund’s Independent Registered Public","page_number":26,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"e7639cec-e10a-498b-9316-f7db0f9d6bc3","block_type":"box","text":"Accounting Firm regarding financial repor ting. The Board has adopted a written char ter for the Board’s Audit","page_number":26,"box":{"x":68,"y":309,"width":770,"height":11}},{"id":"6fdc4735-e257-4182-aabf-f2d2b92f360d","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Audit Committee met four times.","page_number":26,"box":{"x":69,"y":324,"width":706,"height":12}},{"id":"ae9acc2c-272a-421f-827b-6b468d982a69","block_type":"box","text":"Governance and Nominating Committee.","page_number":26,"box":{"x":102,"y":347,"width":286,"height":11}},{"id":"1cb05843-bcbe-48c6-a054-3f800799ecd5","block_type":"box","text":"The Board has a standing Governance and Nominating Committee","page_number":26,"box":{"x":394,"y":347,"width":471,"height":11}},{"id":"e7c6d00b-c4d3-48c4-9ee5-3dda2d0bc3db","block_type":"box","text":"composed of W. Carl Kester (Chair), Cynthia L. Egan, J. Phillip Holloman and R. Glenn Hubbard, all of whom are","page_number":26,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"c8a8e9b8-ce9e-43cb-a7b4-62eba438cf0d","block_type":"box","text":"Independent Trustees. The principal responsibilities of the Governance and Nominating Committee are: (i) identifying","page_number":26,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"07f74a8d-67ba-42c7-b342-53e771127a25","block_type":"box","text":"individuals qualified to serve as Independent Trustees and recommending Board nominees that are not “interested","page_number":26,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"b1f08c07-067b-4ac8-84d9-d487acea80a4","block_type":"box","text":"persons” of the Fund (as defined in the Investment Company Act) for election by shareholders or appointment by the","page_number":26,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"7a12bbe8-56ef-4c81-b89e-71500f0d3bac","block_type":"box","text":"Board; (ii) advising the Board with respect to Board composition, procedures and Committees of the Board (other","page_number":26,"box":{"x":70,"y":423,"width":806,"height":11}},{"id":"4c3b9d18-42b9-492c-b749-4c66918ffe48","block_type":"box","text":"than the Audit Committee); (iii) overseeing periodic self-assessments of the Board and Committees of the Board","page_number":26,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"8fb06eb3-e0d2-447e-9655-4762978abb1b","block_type":"box","text":"(other than the Audit Committee); (iv) reviewing and making recommendations in respect to Independent Trustee","page_number":26,"box":{"x":69,"y":453,"width":801,"height":11}},{"id":"61fb5ea4-4f8c-4f00-a260-e2a761440686","block_type":"box","text":"compensation; (v) monitoring corporate governance matters and making recommendations in respect thereof to the","page_number":26,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"9df628c6-97b5-417c-9f3b-a6232322bbe0","block_type":"box","text":"Board; (vi) acting as the administrative committee with respect to Board policies and procedures, committee policies","page_number":26,"box":{"x":70,"y":483,"width":831,"height":11}},{"id":"e67ea76d-586c-4a2b-92b7-c9a15c9820e3","block_type":"box","text":"and procedures (other than the Audit Committee) and codes of ethics as they relate to the Independent Trustees;","page_number":26,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"d83afda3-86c3-4a3c-b17f-37515d22914a","block_type":"box","text":"and (vii) reviewing and making recommendations to the Board in respect of Fund share ownership by the Independent","page_number":26,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"12ab9689-6228-4555-867b-a201342ca6db","block_type":"box","text":"Trustees. The Board has adopted a written char ter for the Board’s Governance and Nominating Committee. During","page_number":26,"box":{"x":68,"y":528,"width":817,"height":12}},{"id":"9dd50800-80e8-4dfc-b846-ce3e45393ee1","block_type":"box","text":"the fiscal year ended December 31, 2025, the Governance and Nominating Committee met four times.","page_number":26,"box":{"x":68,"y":543,"width":734,"height":12}},{"id":"45d3dbf9-411c-4a06-8720-9110ecbe70d0","block_type":"box","text":"The Governance and Nominating Committee of the Board seeks to identify individuals to serve on the Board who","page_number":26,"box":{"x":101,"y":566,"width":803,"height":11}},{"id":"b5ec786c-f18d-42a9-814d-08882d00443a","block_type":"box","text":"have a diverse range of viewpoints, qualifications, experiences, backgrounds and skill sets so that the Board will be","page_number":26,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"345b095a-1ef1-4e5d-af0d-2732661966d1","block_type":"box","text":"better suited to fulfill its responsibility of overseeing the Fund’s activities. In so doing, the Governance and","page_number":26,"box":{"x":69,"y":596,"width":759,"height":12}},{"id":"19de0c90-5aa8-4028-9b1d-d1d29dddc379","block_type":"box","text":"Nominating Committee reviews the size of the Board, the ages of the current Trustees and their tenure on the Board,","page_number":26,"box":{"x":70,"y":612,"width":833,"height":11}},{"id":"7069cb7a-24f5-4459-b259-e2e9deef9952","block_type":"box","text":"and the skills, background and experiences of the Trustees in light of the issues facing the Fund in determining","page_number":26,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"5d02153d-748d-4b0c-bb2a-266ec30e4425","block_type":"box","text":"whether one or more new trustees should be added to the Board. The Board as a group strives to achieve diversity in","page_number":26,"box":{"x":68,"y":642,"width":836,"height":11}},{"id":"4b40389b-61e1-47d2-9af5-1b0c26d68d45","block_type":"box","text":"terms of gender, race and geographic location. The Governance and Nominating Committee believes that the","page_number":26,"box":{"x":68,"y":657,"width":775,"height":11}},{"id":"af27fb53-0273-4698-86da-6ae5bc6ddc1e","block_type":"box","text":"Trustees as a group possess the array of skills, experiences and backgrounds necessary to guide the Fund. The","page_number":26,"box":{"x":68,"y":672,"width":801,"height":11}},{"id":"b0a13025-0e06-42ff-a759-05aa70b92ab2","block_type":"box","text":"Trustees’ biographies included herein highlight the diversity and breadth of skills, qualifications and exper tise that","page_number":26,"box":{"x":68,"y":687,"width":815,"height":11}},{"id":"5340e2ed-9c29-4746-96a6-12e2b816c7c1","block_type":"box","text":"the Trustees bring to the Fund.","page_number":26,"box":{"x":68,"y":703,"width":219,"height":11}},{"id":"ba9fc029-c9d2-4b0e-9bb4-43bd52505547","block_type":"box","text":"The Governance and Nominating Committee may consider nominations for Trustees made by the Fund’s","page_number":26,"box":{"x":101,"y":725,"width":741,"height":11}},{"id":"244ed1aa-b048-46f1-8b81-183db9e069f1","block_type":"box","text":"shareholders as it deems appropriate. Under the Trust’s Bylaws, shareholders must follow cer tain procedures to","page_number":26,"box":{"x":69,"y":740,"width":803,"height":11}},{"id":"fe2b8c5a-dbff-45d1-8f9a-052a4dd5c019","block_type":"box","text":"nominate a person for election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under","page_number":26,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"6d95b1e9-c486-49e9-8ba3-9349b6f7e160","block_type":"box","text":"these advance notice procedures, shareholders must submit the proposed nominee by delivering a notice to the","page_number":26,"box":{"x":68,"y":771,"width":801,"height":11}},{"id":"a28fb69b-ec00-467f-bcf3-87f2497492da","block_type":"box","text":"Secretary of the Fund at its principal executive offices no later than the close of business on the fifth (5th) day","page_number":26,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"bd78e43e-87c1-4786-a9a7-b44be6477a8d","block_type":"box","text":"following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the","page_number":26,"box":{"x":68,"y":801,"width":784,"height":11}},{"id":"8c8d21ca-65db-42fa-aaf7-4c5e4d9080e1","block_type":"box","text":"meeting was made, whichever first occurs.","page_number":26,"box":{"x":69,"y":816,"width":302,"height":11}},{"id":"c4c442b1-ab60-4428-9116-125635fc71bd","block_type":"box","text":"The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain information about the","page_number":26,"box":{"x":101,"y":838,"width":769,"height":11}},{"id":"648e3252-9dce-454a-89fc-65808275b529","block_type":"box","text":"shareholder and the nominee, as well as cer tain other information, including a written consent of the proposed","page_number":26,"box":{"x":69,"y":853,"width":791,"height":12}},{"id":"c95748ef-37b4-453c-b561-b15dd0a8125b","block_type":"box","text":"nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details.","page_number":26,"box":{"x":69,"y":869,"width":615,"height":11}},{"id":"60b11007-5b87-4b67-bc5e-5e9b73426469","block_type":"box","text":"Compliance Committee.","page_number":26,"box":{"x":102,"y":891,"width":168,"height":11}},{"id":"3cb0f03c-b272-4609-90aa-c736ac9f0af8","block_type":"box","text":"The Board has a Compliance Committee composed of Cynthia L. Egan (Chair), Stayce D.","page_number":26,"box":{"x":276,"y":891,"width":628,"height":12}},{"id":"f3a53c00-30bd-401f-ab22-ead5917d69df","block_type":"box","text":"Harris, R. Glenn Hubbard and W. Carl Kester, all of whom are Independent Trustees. The Compliance Committee’s","page_number":26,"box":{"x":70,"y":906,"width":813,"height":11}},{"id":"4c5ea708-dbf2-4888-81c7-482b289788a8","block_type":"box","text":"I-10","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"26a4da71-1a68-47bb-833c-509af0eb470c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"019d4970-c83d-4f70-b217-126b5c2b302f","block_type":"box","text":"purpose is to assist the Board in fulfilling its responsibility with respect to the oversight of regulatory and fiduciary","page_number":27,"box":{"x":70,"y":45,"width":814,"height":11}},{"id":"406c2c59-427d-4794-b26c-c79ace1db607","block_type":"box","text":"compliance matters involving the Fund, the fund-related activities of BlackRock, and any sub-adviser’s and the Fund’s","page_number":27,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"61b6548e-0a10-440b-a392-c3fe1dff1116","block_type":"box","text":"other third par ty service providers. The Compliance Committee’s responsibilities include, without limitation:","page_number":27,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"077aa4fe-7ecb-4f27-9792-c0a2c4c28dbb","block_type":"box","text":"(i) overseeing the compliance policies and procedures of the Fund and its service providers and recommending","page_number":27,"box":{"x":69,"y":90,"width":791,"height":11}},{"id":"5146103d-cf46-4271-8a7a-75e384767d30","block_type":"box","text":"changes or additions to such policies and procedures; (ii) reviewing information on and, where appropriate,","page_number":27,"box":{"x":69,"y":105,"width":762,"height":11}},{"id":"72125a7b-58fd-4f7c-af54-5096d837b746","block_type":"box","text":"recommending policies concerning the Fund’s compliance with applicable law; (iii) reviewing information on any","page_number":27,"box":{"x":69,"y":120,"width":791,"height":12}},{"id":"6e57374b-9bd2-4105-9795-4b50fdb08ec7","block_type":"box","text":"significant correspondence with or other actions by regulators or governmental agencies with respect to the Fund and","page_number":27,"box":{"x":69,"y":135,"width":836,"height":12}},{"id":"74344659-b990-4220-b5e1-3e90d4b64138","block_type":"box","text":"any employee complaints or published repor ts that raise concerns regarding compliance matters; and (iv) reviewing","page_number":27,"box":{"x":69,"y":151,"width":822,"height":11}},{"id":"d685a950-0c87-4f84-9fda-fff178199b25","block_type":"box","text":"repor ts from, overseeing the annual per formance review of, and making cer tain recommendations in respect of, the","page_number":27,"box":{"x":69,"y":166,"width":827,"height":11}},{"id":"bc67f700-d41b-40d6-a45a-2f3d5b899561","block_type":"box","text":"Trust’s CCO, including, without limitation, determining the amount and structure of the CCO’s compensation. The","page_number":27,"box":{"x":68,"y":181,"width":807,"height":11}},{"id":"2e74fe9a-eac3-44bd-a189-15386cc67564","block_type":"box","text":"Board has adopted a written char ter for the Board’s Compliance Committee. During the fiscal year ended","page_number":27,"box":{"x":70,"y":196,"width":747,"height":11}},{"id":"fcae28e6-08c0-40dd-a6e1-711f18d0fe71","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":27,"box":{"x":70,"y":211,"width":460,"height":11}},{"id":"f4f17430-80be-45e8-949c-01111f38f6e1","block_type":"box","text":"Per formance Oversight Committee.","page_number":27,"box":{"x":102,"y":234,"width":248,"height":11}},{"id":"95d9fe63-fbdc-4cc6-8289-bc10ba210842","block_type":"box","text":"The Board has a Per formance Oversight Committee composed of Ar thur P.","page_number":27,"box":{"x":356,"y":234,"width":530,"height":11}},{"id":"9a0bea8f-d11a-4be4-bb63-3ee2b1192db6","block_type":"box","text":"Steinmetz (Chair), Cynthia L. Egan, Lorenzo A. Flores, Stayce D. Harris, J. Phillip Holloman, R. Glenn Hubbard and W.","page_number":27,"box":{"x":69,"y":249,"width":828,"height":11}},{"id":"8ac4f2d5-ad60-4a6d-875b-7faecbfcddc1","block_type":"box","text":"Carl Kester, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is to assist the","page_number":27,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"21176c1e-50ef-4092-b853-4b9b5e2272dc","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to the Fund’s investment","page_number":27,"box":{"x":70,"y":279,"width":819,"height":11}},{"id":"2e415b91-057b-4a08-8043-6634c7b57a0b","block_type":"box","text":"objective, policies and practices. The Per formance Oversight Committee’s responsibilities include, without limitation:","page_number":27,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"bb323612-1184-4fc3-a7f1-58dba0577ec5","block_type":"box","text":"(i) reviewing the Fund’s investment objective, policies and practices; (ii) recommending to the Board any required","page_number":27,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"c9ea6b01-7726-4595-8f52-36745cf13ed6","block_type":"box","text":"action in respect of changes in fundamental and non-fundamental investment restrictions; (iii) reviewing information","page_number":27,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"f31a8d84-659d-4730-bca3-7b5d86b09bde","block_type":"box","text":"on appropriate benchmarks and competitive universes; (iv) reviewing the Fund’s investment per formance relative to","page_number":27,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"0fe66bb2-bfb5-4808-bf7d-a4892baca071","block_type":"box","text":"such benchmarks; (v) reviewing information on unusual or exceptional investment matters; (vi) reviewing whether the","page_number":27,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"b897db48-d586-4593-bb25-dac07933bfc3","block_type":"box","text":"Fund has complied with its investment policies and restrictions; and (vii) overseeing policies, procedures and controls","page_number":27,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"3309e517-ce96-43a8-83e7-b54cd5e73ab9","block_type":"box","text":"regarding valuation of the Fund’s investments. The Board has adopted a written char ter for the Board’s Per formance","page_number":27,"box":{"x":69,"y":385,"width":832,"height":11}},{"id":"a97dbbca-ecf2-4c3b-8aed-6dde568c8eaa","block_type":"box","text":"Oversight Committee. During the fiscal year ended December 31, 2025, the Per formance Oversight Committee met","page_number":27,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"d4c39058-7fac-422c-87c0-2919b1e7fbab","block_type":"box","text":"four times.","page_number":27,"box":{"x":68,"y":415,"width":76,"height":9}},{"id":"00043511-8d70-42dd-ba66-b8ea714b32e7","block_type":"box","text":"Securities Lending Committee.","page_number":27,"box":{"x":102,"y":438,"width":217,"height":11}},{"id":"1ed588b3-0535-45b4-93a6-7e8d1180e046","block_type":"box","text":"The Board has a Securities Lending Committee composed of Cynthia L. Egan","page_number":27,"box":{"x":325,"y":438,"width":547,"height":11}},{"id":"cdc73ee3-359b-4ee2-af69-337702352bea","block_type":"box","text":"(Chair) and W. Carl Kester, both of whom are Independent Trustees. The principal responsibilities of the Securities","page_number":27,"box":{"x":69,"y":453,"width":813,"height":11}},{"id":"06cbe91e-0053-43e5-80e6-1b4570213b84","block_type":"box","text":"Lending Committee include, without limitation: (i) suppor ting, overseeing and organizing on behalf of the Board the","page_number":27,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"95aa49ca-7bcd-4352-a6c7-6cd95468aa4d","block_type":"box","text":"process for oversight of the Fund’s securities lending activities; and (ii) providing a recommendation to the Board","page_number":27,"box":{"x":70,"y":483,"width":804,"height":11}},{"id":"743c5e1c-2793-4d67-b2f1-e843a03e84a0","block_type":"box","text":"regarding the annual approval of the Fund’s Securities Lending Guidelines and the Fund’s agreement with the lending","page_number":27,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"8506009c-e242-4a40-9d72-bbcc49b799a8","block_type":"box","text":"agent. The Board has adopted a written char ter for the Board’s Securities Lending Committee. During the fiscal year","page_number":27,"box":{"x":69,"y":513,"width":829,"height":12}},{"id":"250f49d8-ac1d-4bfb-acc8-3e49762d3dec","block_type":"box","text":"ended December 31, 2025, the Securities Lending Committee met two times.","page_number":27,"box":{"x":69,"y":529,"width":555,"height":11}},{"id":"2ab50b9a-97f4-47bf-9c4c-0ba4475a7476","block_type":"box","text":"Executive Committee.","page_number":27,"box":{"x":102,"y":551,"width":152,"height":9}},{"id":"5be5d8e4-0eed-4f8b-9bde-60dcc4da7472","block_type":"box","text":"The Board has an Executive Committee composed of R. Glenn Hubbard (Chair) and W. Carl","page_number":27,"box":{"x":260,"y":551,"width":645,"height":11}},{"id":"e0112c7d-20d7-42f8-8ce6-3f5a3e4b4803","block_type":"box","text":"Kester, both of whom are Independent Trustees, and John M. Perlowski, who serves as an interested Trustee. The","page_number":27,"box":{"x":70,"y":566,"width":815,"height":11}},{"id":"533f8e73-09d6-4f4c-8146-db86c1a4fd42","block_type":"box","text":"principal responsibilities of the Executive Committee include, without limitation: (i) acting on routine matters between","page_number":27,"box":{"x":70,"y":581,"width":832,"height":12}},{"id":"227ca25b-e2c1-45bc-88b1-ae3bd520296f","block_type":"box","text":"meetings of the Board; (ii) acting on such matters as may require urgent action between meetings of the Board; and","page_number":27,"box":{"x":69,"y":596,"width":828,"height":12}},{"id":"198df367-9886-46f7-b6be-9c6103a048c3","block_type":"box","text":"(iii) exercising such other authority as may from time to time be delegated to the Executive Committee by the Board.","page_number":27,"box":{"x":69,"y":612,"width":826,"height":11}},{"id":"073736c3-9160-4677-915c-edc4c4ef6a04","block_type":"box","text":"The Board has adopted a written char ter for the Board’s Executive Committee. During the fiscal year ended","page_number":27,"box":{"x":68,"y":627,"width":764,"height":11}},{"id":"779f13e9-9583-48af-a436-007d378f17ee","block_type":"box","text":"December 31, 2025, the Executive Committee did not meet.","page_number":27,"box":{"x":70,"y":642,"width":429,"height":10}},{"id":"16e5c6b2-0ea8-4f02-8867-b5400872a6aa","block_type":"box","text":"The Independent Trustees have adopted a statement of policy that describes the experiences, qualifications,","page_number":27,"box":{"x":101,"y":664,"width":775,"height":12}},{"id":"5c4b0433-2cde-4690-a18e-def941a66837","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":27,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"15ec4e39-e3a1-49c5-9163-ea88cd377f77","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":27,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"c3563f3e-9007-4ed6-a50e-ff5de31c1757","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy as well as the","page_number":27,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"e72ebf03-b9d4-4a00-ad5e-0bd0f2b2f354","block_type":"box","text":"standards set for th in the Trust’s Bylaws. Fur thermore, in determining that a par ticular Trustee was and continues to","page_number":27,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"dbf2d8fc-e355-4491-a0ed-26e1b0dd8c87","block_type":"box","text":"be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was","page_number":27,"box":{"x":69,"y":740,"width":805,"height":11}},{"id":"391484c1-22b3-4763-967f-5b8a6274507d","block_type":"box","text":"controlling. The Board believes that, collectively, the Trustees have balanced and diverse experiences, skills,","page_number":27,"box":{"x":69,"y":755,"width":773,"height":11}},{"id":"da9de361-dd38-459a-82d9-02ba10b1ad5a","block_type":"box","text":"attributes and qualifications, which allow the Board to operate effectively in governing the Fund and protecting the","page_number":27,"box":{"x":69,"y":770,"width":812,"height":12}},{"id":"57fbd2ef-a082-425d-b4b0-c2589c0f62fa","block_type":"box","text":"interests of shareholders. Among the attributes common to all Trustees is their ability to review critically, evaluate,","page_number":27,"box":{"x":70,"y":785,"width":814,"height":12}},{"id":"7a8e831e-aeb1-4fe9-b8b6-44379b3c51cc","block_type":"box","text":"question and discuss information provided to them, to interact effectively with the Manager, sub-advisers, other","page_number":27,"box":{"x":69,"y":801,"width":796,"height":11}},{"id":"a27ff80c-3c6e-4a48-aaa9-69eb411428c5","block_type":"box","text":"service providers, counsel and independent auditors, and to exercise effective business judgment in the","page_number":27,"box":{"x":69,"y":816,"width":744,"height":11}},{"id":"bdf68bd2-b7c7-4e9b-984a-01442ef89ee4","block_type":"box","text":"per formance of their duties as Trustees. Each Trustee’s ability to per form his or her duties effectively is evidenced by","page_number":27,"box":{"x":70,"y":831,"width":840,"height":11}},{"id":"06f1247f-3683-4242-a969-a3482f249019","block_type":"box","text":"his or her educational background or professional training; business, consulting, public service or academic","page_number":27,"box":{"x":69,"y":846,"width":768,"height":11}},{"id":"41762c62-244e-4d50-888b-1437d533c89a","block_type":"box","text":"positions; experience from service as a board member of the Trust or the other funds in the BlackRock Fund","page_number":27,"box":{"x":70,"y":861,"width":771,"height":11}},{"id":"ae52b052-4c03-4293-9ada-f6ec56835ff4","block_type":"box","text":"Complexes (and any predecessor funds), other investment funds, public companies, or not-for-profit entities or other","page_number":27,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"f251d863-5516-4f3a-a149-f62db3848f0b","block_type":"box","text":"organizations; ongoing commitment and par ticipation in Board and Committee meetings, as well as his or her","page_number":27,"box":{"x":69,"y":891,"width":782,"height":12}},{"id":"c50d37ac-ff9b-4fab-b49f-253c90c5dd57","block_type":"box","text":"leadership of standing and other committees throughout the years; or other relevant life experiences.","page_number":27,"box":{"x":70,"y":906,"width":719,"height":12}},{"id":"8492dbf3-0e10-4106-9b14-6402268e0ca0","block_type":"box","text":"I-11","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"13bf99ab-dcf8-4008-932b-98e49207fe56","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2451680f-4d64-4486-bd04-dfd2e4adea49","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each Trustee that suppor t the","page_number":28,"box":{"x":101,"y":45,"width":784,"height":11}},{"id":"9b04209f-4efe-4604-8667-78eb173740d2","block_type":"box","text":"conclusion that he or she should serve on the Board.","page_number":28,"box":{"x":69,"y":60,"width":378,"height":9}},{"id":"85c7c98e-c5b2-4594-b3bb-cff3ae1ef96d","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":88,"width":409,"height":9}},{"id":"9dd464ca-9251-4ba2-8df9-191af13bdcf3","block_type":"box","text":"Independent Trustees","page_number":28,"box":{"x":70,"y":105,"width":154,"height":10}},{"id":"c2d8ef18-0971-4058-a595-3685f1a2d5ba","block_type":"box","text":"R. Glenn Hubbard R. Glenn Hubbard has served in numerous roles in the field of economics, including as","page_number":28,"box":{"x":70,"y":120,"width":814,"height":11}},{"id":"94ecc001-34c8-4ed2-a6aa-8f035fb218f1","block_type":"box","text":"the Chairman of the U.S. Council of Economic Advisers of the President of the United","page_number":28,"box":{"x":264,"y":135,"width":606,"height":9}},{"id":"b8a65a25-aea8-4dfb-a84e-6f8cbde2ff76","block_type":"box","text":"States. Dr. Hubbard has served as the Dean of Columbia Business School, as a member","page_number":28,"box":{"x":265,"y":150,"width":635,"height":10}},{"id":"8bb73b4c-24f2-4cb8-a10b-92e9e46d4bc2","block_type":"box","text":"of the Columbia Faculty and as a Visiting Professor at the John F. Kennedy School of","page_number":28,"box":{"x":265,"y":165,"width":602,"height":11}},{"id":"9392d1fe-6571-4f0d-9baf-5415be1d8de7","block_type":"box","text":"Government at Harvard University, the Harvard Business School and the University of","page_number":28,"box":{"x":265,"y":180,"width":608,"height":11}},{"id":"d02caa4c-2687-4531-8661-03fb84e2da2f","block_type":"box","text":"Chicago. Dr. Hubbard’s experience as an adviser to the President of the United States","page_number":28,"box":{"x":265,"y":195,"width":613,"height":11}},{"id":"49f49f64-0f81-490b-8fe1-bd34fc4fe82a","block_type":"box","text":"adds a dimension of balance to the Fund’s governance and provides perspective on","page_number":28,"box":{"x":265,"y":210,"width":595,"height":12}},{"id":"f1525e4f-bf53-4787-8306-0af3ea776760","block_type":"box","text":"economic issues. Dr. Hubbard’s service on the boards of ADP and Metropolitan Life","page_number":28,"box":{"x":265,"y":225,"width":597,"height":11}},{"id":"1853cebd-afbf-4bdd-8a34-83204670595a","block_type":"box","text":"Insurance Company provides the Board with the benefit of his experience with the","page_number":28,"box":{"x":265,"y":241,"width":581,"height":11}},{"id":"646ade2e-0f39-4503-bdec-2c638b6bc837","block_type":"box","text":"management practices of other financial companies. Dr. Hubbard’s long-standing service","page_number":28,"box":{"x":265,"y":256,"width":632,"height":11}},{"id":"b4aa0b13-f539-4f9b-aea3-fcc8f9631b8e","block_type":"box","text":"on the boards of directors/trustees of the closed-end funds in the BlackRock Fixed","page_number":28,"box":{"x":265,"y":271,"width":594,"height":11}},{"id":"395846ea-a3cd-4a67-a18d-226b9734961b","block_type":"box","text":"Income Complex also provides him with a specific understanding of the Fund, its","page_number":28,"box":{"x":265,"y":286,"width":573,"height":11}},{"id":"03646989-5567-47ff-8a43-1c63796690e0","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Hubbard’s","page_number":28,"box":{"x":265,"y":301,"width":589,"height":11}},{"id":"bc6bddda-8189-4771-b14b-77173611f29f","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Chair of the","page_number":28,"box":{"x":265,"y":316,"width":595,"height":11}},{"id":"62de962d-88e5-4450-8006-9f1710578752","block_type":"box","text":"Board, Chair of the Executive Committee and a member of the Governance and","page_number":28,"box":{"x":265,"y":331,"width":562,"height":11}},{"id":"872029f8-089c-46ee-8d9c-480d8ea6c368","block_type":"box","text":"Nominating Committee, the Compliance Committee and the Per formance Oversight","page_number":28,"box":{"x":265,"y":346,"width":592,"height":12}},{"id":"200ca073-5244-47c7-83dc-782ed28cec80","block_type":"box","text":"Committee.","page_number":28,"box":{"x":265,"y":362,"width":80,"height":8}},{"id":"edf4337b-c226-4202-8962-7d7d2bcf2309","block_type":"box","text":"W. Carl Kester The Board benefits from W. Carl Kester’s experiences as a professor and author in","page_number":28,"box":{"x":68,"y":384,"width":786,"height":11}},{"id":"875c0fe2-bf5e-4a16-9b5a-fdc52687a9a5","block_type":"box","text":"finance, and his experience as the George Fisher Baker Jr. Professor of Business","page_number":28,"box":{"x":264,"y":399,"width":578,"height":12}},{"id":"d7fa7328-67cc-453b-9d68-59a737bc1316","block_type":"box","text":"Administration at Harvard Business School and as Deputy Dean of Academic Affairs at","page_number":28,"box":{"x":264,"y":414,"width":618,"height":12}},{"id":"18b96388-e5a4-49fe-a571-e983bf366f0d","block_type":"box","text":"Harvard Business School from 2006 through 2010 adds to the Board a wealth of","page_number":28,"box":{"x":265,"y":429,"width":581,"height":12}},{"id":"bb4b1d5f-e874-4b9e-a283-188e29ec340a","block_type":"box","text":"exper tise in corporate finance and corporate governance. Dr. Kester has authored and","page_number":28,"box":{"x":265,"y":445,"width":613,"height":11}},{"id":"d0fbc706-378a-4707-8e14-a4d4c5c701bc","block_type":"box","text":"edited numerous books and research papers on both subject matters, including co-editing","page_number":28,"box":{"x":265,"y":460,"width":641,"height":11}},{"id":"3bc9448f-59cd-4f7b-a700-7eb620eaf40b","block_type":"box","text":"a leading volume of finance case studies used worldwide. Dr. Kester’s long-standing","page_number":28,"box":{"x":265,"y":475,"width":599,"height":11}},{"id":"789800f0-9c3e-4572-b479-8fb764ccc997","block_type":"box","text":"service on the boards of directors/trustees of the closed-end funds in the BlackRock","page_number":28,"box":{"x":265,"y":490,"width":605,"height":11}},{"id":"095c9b9c-7bdf-4fa4-a48a-d36a08639e0b","block_type":"box","text":"Fixed-Income Complex also provides him with a specific understanding of the Fund, its","page_number":28,"box":{"x":265,"y":505,"width":613,"height":11}},{"id":"5bf65086-47e6-4bb5-96be-dee562a1b0ce","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Kester’s","page_number":28,"box":{"x":265,"y":520,"width":576,"height":12}},{"id":"1820e5d8-1a2f-41a3-9778-76455c6123e2","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Vice Chair of the","page_number":28,"box":{"x":265,"y":535,"width":630,"height":12}},{"id":"e2d7c710-d6b6-40a6-a6a2-21e036659aec","block_type":"box","text":"Board, Chair of the Governance and Nominating Committee and a member of the","page_number":28,"box":{"x":265,"y":550,"width":576,"height":12}},{"id":"48c7e459-6d9e-45dc-a13d-f5ce3cd153f5","block_type":"box","text":"Executive Committee, the Compliance Committee, the Per formance Oversight Committee","page_number":28,"box":{"x":265,"y":566,"width":634,"height":11}},{"id":"49e9ccf0-871a-4cd0-87a0-158d731db0c7","block_type":"box","text":"and the Securities Lending Committee.","page_number":28,"box":{"x":265,"y":581,"width":275,"height":11}},{"id":"75d1ad80-1185-4c8e-b184-3bd5aac80087","block_type":"box","text":"Cynthia L. Egan Cynthia L. Egan brings to the Board a broad and diverse knowledge of investment","page_number":28,"box":{"x":69,"y":603,"width":775,"height":12}},{"id":"06631911-734a-4497-bdcd-ffc7ea16f99a","block_type":"box","text":"companies and the retirement industry as a result of her many years of experience as","page_number":28,"box":{"x":264,"y":618,"width":613,"height":12}},{"id":"58388cd8-fa80-4beb-a4bc-57b7ebee0f92","block_type":"box","text":"President, Retirement Plan Services, for T. Rowe Price Group, Inc. and her various senior","page_number":28,"box":{"x":265,"y":634,"width":633,"height":11}},{"id":"2bcda3de-39df-4381-8460-fdede774f6b8","block_type":"box","text":"operating officer positions at Fidelity Investments, including her service as Executive Vice","page_number":28,"box":{"x":265,"y":649,"width":636,"height":11}},{"id":"6c713fa4-0f30-4d5e-b700-cdea36892e39","block_type":"box","text":"President of FMR Co., President of Fidelity Institutional Services Company and President","page_number":28,"box":{"x":265,"y":664,"width":629,"height":11}},{"id":"89ed6c6a-996e-4e7d-bfe3-ae25e1166005","block_type":"box","text":"of the Fidelity Charitable Gift Fund. Ms. Egan has also served as an advisor to the U.S.","page_number":28,"box":{"x":265,"y":679,"width":617,"height":11}},{"id":"999b0a02-9892-4966-8165-ad9629a0f17e","block_type":"box","text":"Depar tment of Treasury as an exper t in domestic retirement security. Ms. Egan began her","page_number":28,"box":{"x":265,"y":694,"width":642,"height":11}},{"id":"90dce0d4-938a-4bb0-aa5f-b8f26154d7fa","block_type":"box","text":"professional career at the Board of Governors of the Federal Reserve and the Federal","page_number":28,"box":{"x":265,"y":709,"width":608,"height":11}},{"id":"6f85626e-1cb1-4f3e-955d-c4bc8a2425c2","block_type":"box","text":"Reserve Bank of New York. Ms. Egan is also a director of UNUM Corporation, a publicly","page_number":28,"box":{"x":265,"y":724,"width":620,"height":12}},{"id":"c77c5d1e-8d36-4384-8312-8b81dff91943","block_type":"box","text":"traded insurance company providing personal risk reinsurance, and a director and Chair of","page_number":28,"box":{"x":264,"y":739,"width":643,"height":12}},{"id":"d5884497-42d4-49b1-99eb-026300d822de","block_type":"box","text":"the Board of The Hanover Group, a public proper ty casualty insurance company. Ms. Egan","page_number":28,"box":{"x":264,"y":755,"width":640,"height":11}},{"id":"2c31a3c4-838b-4f2f-aa1e-a2676cd669ba","block_type":"box","text":"is also the lead independent director and non-executive Vice Chair of the Board of","page_number":28,"box":{"x":265,"y":770,"width":583,"height":11}},{"id":"1bf97359-0bea-476a-b9d4-ebc7da283a08","block_type":"box","text":"Huntsman Corporation, a publicly traded manufacturer and marketer of chemical products.","page_number":28,"box":{"x":265,"y":785,"width":643,"height":11}},{"id":"1fad0d04-257a-42b0-a4ab-531e31be78fa","block_type":"box","text":"Ms. Egan’s independence from the Fund and the Manager enhances her service as Chair","page_number":28,"box":{"x":265,"y":800,"width":636,"height":11}},{"id":"8e788abd-e797-45a4-b874-544c12ac60a6","block_type":"box","text":"of the Compliance Committee, Chair of the Securities Lending Committee and a member","page_number":28,"box":{"x":265,"y":815,"width":631,"height":11}},{"id":"2d874bc1-5cb8-4f64-974e-d7e21a908db3","block_type":"box","text":"of the Governance and Nominating Committee and the Per formance Oversight Committee.","page_number":28,"box":{"x":265,"y":830,"width":642,"height":11}},{"id":"a257b640-b142-407b-93ea-e94dde07929d","block_type":"box","text":"I-12","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"44d53e92-c892-4f7b-846a-3b916f5c2abc","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eea83d7e-8a2e-46ec-9f5e-8e1cc2bf831d","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":29,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"1071a1ee-c422-42d7-a32a-721dda03f7bd","block_type":"box","text":"Lorenzo A. Flores The Board benefits from Lorenzo A. Flores’s many years of business, leadership and","page_number":29,"box":{"x":70,"y":65,"width":796,"height":12}},{"id":"f03fa984-a9aa-4c5e-964e-dc05aae70ec4","block_type":"box","text":"financial experience in his roles at various public and private companies. In par ticular,","page_number":29,"box":{"x":264,"y":81,"width":612,"height":11}},{"id":"01527b60-b600-46d1-b21e-8636e42709f8","block_type":"box","text":"Mr. Flores’s service as Chief Financial Officer of Lattice Semiconductor Corporation, a","page_number":29,"box":{"x":265,"y":96,"width":611,"height":11}},{"id":"c8b65e18-e74b-4aab-b08f-f21434624eee","block_type":"box","text":"semiconductor company that designs, develops, and markets programmable logic","page_number":29,"box":{"x":265,"y":111,"width":582,"height":11}},{"id":"8a17a92a-5b77-4c41-8aa7-b6a5bd7be70e","block_type":"box","text":"products and related software, Chief Financial Officer of Intel Foundry, a semiconductor","page_number":29,"box":{"x":265,"y":126,"width":622,"height":11}},{"id":"24507bda-b8ae-4b70-a7cb-1177c0ac1449","block_type":"box","text":"manufacturing unit of Intel Corporation, Chief Financial Officer and Corporate Controller of","page_number":29,"box":{"x":265,"y":141,"width":639,"height":11}},{"id":"1aadc464-3d71-49f8-86d7-3491915ff9fd","block_type":"box","text":"Xilinx, Inc., a technology and semiconductor company that supplies programmable logic","page_number":29,"box":{"x":264,"y":156,"width":622,"height":11}},{"id":"c85d070c-e3c3-4a46-90a5-d296d051acbc","block_type":"box","text":"devices, and Vice Chairman of Kioxia, Inc., a manufacturer and supplier of flash memory","page_number":29,"box":{"x":265,"y":171,"width":631,"height":11}},{"id":"34f78b83-a4f5-43c4-a635-e80de60b3d8e","block_type":"box","text":"and solid state drives, and his long experience in the technology industry allow him to","page_number":29,"box":{"x":265,"y":187,"width":610,"height":11}},{"id":"014adaaf-1d97-4e81-9c6e-17350eb1c790","block_type":"box","text":"provide insight into financial, business and technology trends. Mr. Flores’s knowledge of","page_number":29,"box":{"x":265,"y":201,"width":629,"height":12}},{"id":"4140d038-e941-4f10-a70c-38180558dc67","block_type":"box","text":"financial and accounting matters qualifies him to serve as Chair of the Audit Committee.","page_number":29,"box":{"x":264,"y":217,"width":630,"height":11}},{"id":"ac6780d7-f14c-448b-933f-4f68967bfbf7","block_type":"box","text":"Mr. Flores’s independence from the Fund and the Manager enhances his service as a","page_number":29,"box":{"x":265,"y":232,"width":610,"height":11}},{"id":"ce78fe8e-906d-4a31-a74e-6101fc7e3c1d","block_type":"box","text":"member of the Per formance Oversight Committee.","page_number":29,"box":{"x":265,"y":247,"width":358,"height":11}},{"id":"26604219-2582-410f-8e57-4a215437bb6a","block_type":"box","text":"Stayce D. Harris The Board benefits from Stayce D. 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As of December 31, 2025, none of the","page_number":33,"box":{"x":69,"y":579,"width":837,"height":11}},{"id":"3d0ff811-c8ec-44ec-83e1-606fd36fe2a1","block_type":"box","text":"Independent Trustees of the Trust or their immediate family members owned beneficially or of record any securities of","page_number":33,"box":{"x":70,"y":594,"width":840,"height":11}},{"id":"cf44e8fc-143a-45d8-bc6a-38d805829928","block_type":"box","text":"the Fund’s investment adviser, sub-advisers, principal underwriter, or any person directly or indirectly controlling,","page_number":33,"box":{"x":68,"y":609,"width":800,"height":11}},{"id":"b96dbd50-61f7-408f-93a7-d33239cc8c4c","block_type":"box","text":"controlled by, or under common control with such entities.","page_number":33,"box":{"x":69,"y":624,"width":412,"height":11}},{"id":"4de0d347-0b83-449a-8c9b-01e2ab26c80c","block_type":"box","text":"Compensation of Trustees","page_number":33,"box":{"x":69,"y":654,"width":190,"height":11}},{"id":"9298edbd-0eb0-4a22-92cb-a2dfe68abef9","block_type":"box","text":"Each Independent Trustee is paid an annual retainer of $370,000 per year for his or her services as a Board","page_number":33,"box":{"x":102,"y":676,"width":775,"height":12}},{"id":"2a9299bc-2922-4acd-bd7f-53f528b8f89f","block_type":"box","text":"member of the BlackRock-advised Funds, including the Trust, together with out-of-pocket expenses in accordance with","page_number":33,"box":{"x":69,"y":692,"width":838,"height":11}},{"id":"0588a746-c058-41e7-9e0e-8e8cb31bfe30","block_type":"box","text":"a Board policy on travel and other business expenses relating to attendance at meetings. In addition, the Chair of the","page_number":33,"box":{"x":69,"y":707,"width":838,"height":12}},{"id":"3a6c63d1-b8f9-42bb-a686-7b60dc80d686","block_type":"box","text":"Board and the Vice Chair of the Board are paid an additional annual retainer of $140,000 and $84,000, respectively.","page_number":33,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"e9bc45f5-4eae-41a4-8f4b-63069717410f","block_type":"box","text":"The Chairs of the Audit Committee, Per formance Oversight Committee, Compliance Committee, Governance and","page_number":33,"box":{"x":68,"y":738,"width":801,"height":11}},{"id":"42ac8dd7-0408-460a-84b6-eb4a57945505","block_type":"box","text":"Nominating Committee and Securities Lending Committee are paid an additional annual retainer of $55,000,","page_number":33,"box":{"x":70,"y":752,"width":775,"height":12}},{"id":"c7acdd79-949e-4515-8042-4fd9a25251af","block_type":"box","text":"$42,500, $50,000, $42,500 and $20,000, respectively. Each of the other members of the Audit Committee,","page_number":33,"box":{"x":69,"y":767,"width":779,"height":12}},{"id":"27d398c1-ba52-439a-b4ca-83ed17258951","block_type":"box","text":"Compliance Committee, Governance and Nominating Committee and Securities Lending Committee are paid an","page_number":33,"box":{"x":69,"y":783,"width":793,"height":11}},{"id":"76765c8c-7ced-45c5-9fb7-c1689ef84454","block_type":"box","text":"additional annual retainer of $30,000, $25,000, $25,000 and $15,000, respectively, for his or her service on such","page_number":33,"box":{"x":69,"y":797,"width":826,"height":12}},{"id":"6c05810f-5b77-4740-92e8-faf4cf59d36c","block_type":"box","text":"committee. An Independent Trustee may receive additional compensation for his or her service as a member or Chair,","page_number":33,"box":{"x":69,"y":813,"width":839,"height":11}},{"id":"14e507a3-988c-4542-8cab-eedc92eb4a83","block_type":"box","text":"as applicable, of one or more ad hoc committees of the Board. The Fund will pay a pro rata por tion quar terly (based","page_number":33,"box":{"x":69,"y":828,"width":826,"height":11}},{"id":"aa9f4b13-f197-4439-8b00-0ed24086f070","block_type":"box","text":"on relative net assets) of the foregoing Trustee fees paid by the funds in the BlackRock Fixed-Income Complex.","page_number":33,"box":{"x":69,"y":843,"width":789,"height":12}},{"id":"5d511a8a-3671-4cee-8f48-93fb3274ad66","block_type":"box","text":"The Independent Trustees have agreed that a maximum of 50% of each Independent Trustee’s total","page_number":33,"box":{"x":101,"y":866,"width":711,"height":11}},{"id":"628108d6-04ce-48d0-9479-d104b875686c","block_type":"box","text":"compensation paid by funds in the BlackRock Fixed-Income Complex may be deferred pursuant to the BlackRock","page_number":33,"box":{"x":69,"y":881,"width":801,"height":11}},{"id":"7d30c5f5-c411-4983-a0e9-848020a59452","block_type":"box","text":"Fixed-Income Complex’s deferred compensation plan. Under the deferred compensation plan, deferred amounts earn","page_number":33,"box":{"x":70,"y":896,"width":833,"height":11}},{"id":"2b375ce5-1f43-499d-b561-ac1130f6e9cb","block_type":"box","text":"a return for the Independent Trustees as though equivalent dollar amounts had been invested in shares of cer tain","page_number":33,"box":{"x":69,"y":911,"width":813,"height":12}},{"id":"d0c0177a-fce8-4e74-8292-99bd0ba342ce","block_type":"box","text":"I-17","page_number":33,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"657c8ea8-f9d7-49c6-bb9a-6440bdc21de4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff7c6f98-b4e0-49c1-9b04-379e1bcdaea2","block_type":"box","text":"funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has approximately the","page_number":34,"box":{"x":68,"y":45,"width":802,"height":11}},{"id":"094e5c36-b800-4584-b851-e1773f245f65","block_type":"box","text":"same economic effect for the Independent Trustees as if they had invested the deferred amounts in such funds in","page_number":34,"box":{"x":69,"y":60,"width":814,"height":11}},{"id":"9bfa06c0-6e18-4f9e-9cc9-84dfb432d8a0","block_type":"box","text":"the BlackRock Fixed-Income Complex. The deferred compensation plan is not funded and obligations thereunder","page_number":34,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"46d80583-edde-4f3c-afe8-87ce037d62db","block_type":"box","text":"represent general unsecured claims against the general assets of a fund and are recorded as a liability for","page_number":34,"box":{"x":69,"y":90,"width":760,"height":11}},{"id":"351679f8-10ef-414a-950c-ed7bf18018f5","block_type":"box","text":"accounting purposes.","page_number":34,"box":{"x":69,"y":105,"width":151,"height":11}},{"id":"dcbb6db2-d0c1-49b9-90d6-3b8417210723","block_type":"box","text":"The following table sets for th the compensation paid to the Trustees by the Trust, on behalf of the Fund, for the","page_number":34,"box":{"x":101,"y":128,"width":796,"height":11}},{"id":"0ca88252-9b3e-4262-81aa-8c6638b7d1dd","block_type":"box","text":"fiscal year December 31, 2025 and the aggregate compensation, including deferred compensation amounts, paid to","page_number":34,"box":{"x":68,"y":143,"width":831,"height":11}},{"id":"d79bca12-3877-4009-8c15-e0a2d322ae80","block_type":"box","text":"them by all BlackRock-advised Funds for the calendar year ended December 31, 2025.","page_number":34,"box":{"x":68,"y":158,"width":618,"height":11}},{"id":"69e4c3c4-c107-4aa3-bdb9-5d0b34742a85","block_type":"box","text":"Name","page_number":34,"box":{"x":69,"y":217,"width":32,"height":7}},{"id":"cd108092-932b-4d52-a84a-87dc75908dd8","block_type":"box","text":"1","page_number":34,"box":{"x":102,"y":217,"width":4,"height":3}},{"id":"8ae421bc-36d7-4206-99d8-0d057e11c844","block_type":"box","text":"Compensation","page_number":34,"box":{"x":516,"y":207,"width":83,"height":8}},{"id":"788c48a7-cfb2-45b8-9505-5f13cde1b965","block_type":"box","text":"from the Fund","page_number":34,"box":{"x":517,"y":217,"width":81,"height":7}},{"id":"3c459ae0-b6ce-4d4d-a9e9-e9e5b1462a75","block_type":"box","text":"Estimated Annual","page_number":34,"box":{"x":630,"y":196,"width":101,"height":8}},{"id":"4edfd4f4-0d83-4f8d-aee0-5fee053dcb38","block_type":"box","text":"Benefits Upon","page_number":34,"box":{"x":640,"y":206,"width":81,"height":9}},{"id":"4a20cdfc-17c7-4eb0-84a7-dfca9f3eba6e","block_type":"box","text":"Retirement","page_number":34,"box":{"x":648,"y":217,"width":65,"height":7}},{"id":"25fe72a5-edd9-42cd-a72e-a358e04c31d3","block_type":"box","text":"Aggregate Compensation","page_number":34,"box":{"x":761,"y":186,"width":148,"height":9}},{"id":"e6f62a81-7bf7-4006-9565-d419e017075d","block_type":"box","text":"from the Fund and","page_number":34,"box":{"x":782,"y":196,"width":106,"height":8}},{"id":"13d7858e-cb77-4635-a45a-1afcba673046","block_type":"box","text":"Other BlackRock","page_number":34,"box":{"x":785,"y":207,"width":102,"height":7}},{"id":"77f28063-38f7-4d79-9ed8-53a78bcc09b5","block_type":"box","text":"Advised Funds","page_number":34,"box":{"x":788,"y":217,"width":84,"height":7}},{"id":"47bdadc4-9b30-44c9-9e78-995657423f0d","block_type":"box","text":"2,3","page_number":34,"box":{"x":873,"y":217,"width":9,"height":4}},{"id":"8a4b2f26-40da-4c73-ad99-44c2cb87dd04","block_type":"box","text":"Independent Trustees","page_number":34,"box":{"x":70,"y":234,"width":154,"height":11}},{"id":"26a98fb8-e3aa-4795-a429-105d0202f87a","block_type":"box","text":"Cynthia L. Egan","page_number":34,"box":{"x":79,"y":249,"width":108,"height":12}},{"id":"8f42ce13-cd7a-4281-bf62-b7f00e46213c","block_type":"box","text":"4","page_number":34,"box":{"x":189,"y":250,"width":4,"height":4}},{"id":"2d3e6036-0c9e-48cd-a496-eee5f4a35311","block_type":"box","text":"....................................","page_number":34,"box":{"x":198,"y":257,"width":287,"height":1}},{"id":"6cec10dd-4c00-469c-b4f4-1f95a15dc0fe","block_type":"box","text":"$11,683 None $580,000","page_number":34,"box":{"x":527,"y":249,"width":344,"height":11}},{"id":"c3f02adf-70ba-4505-ac4e-af2affbf00de","block_type":"box","text":"Lorenzo A. Flores","page_number":34,"box":{"x":79,"y":265,"width":121,"height":8}},{"id":"0acb5dc3-6d19-40e5-9804-983b795f5469","block_type":"box","text":"5","page_number":34,"box":{"x":201,"y":265,"width":4,"height":4}},{"id":"ba053e33-cfb4-46e8-8b1b-22a814aff306","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,295","page_number":34,"box":{"x":214,"y":264,"width":370,"height":11}},{"id":"83055765-0133-47bf-b5eb-c0de454b1ecc","block_type":"box","text":"None $400,000","page_number":34,"box":{"x":663,"y":264,"width":208,"height":11}},{"id":"8bf37084-b804-4a79-970f-29a88a618eb7","block_type":"box","text":"Stayce D. Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,187","page_number":34,"box":{"x":79,"y":279,"width":505,"height":12}},{"id":"7675e51f-def3-430f-a1b1-4e3f4c8198ef","block_type":"box","text":"None $395,000","page_number":34,"box":{"x":663,"y":279,"width":208,"height":11}},{"id":"07f158cb-4484-4cb0-8249-4b6325f74cea","block_type":"box","text":"J. Phillip Holloman","page_number":34,"box":{"x":78,"y":295,"width":130,"height":11}},{"id":"0a4df310-b7e7-4398-b236-5be4465b0a6e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,904","page_number":34,"box":{"x":214,"y":294,"width":370,"height":11}},{"id":"881863b2-3a15-4a27-b417-ffda2673ed94","block_type":"box","text":"None $425,000","page_number":34,"box":{"x":663,"y":294,"width":208,"height":11}},{"id":"fd7e14de-182a-40e5-a317-dc30d9e82910","block_type":"box","text":"R. Glenn Hubbard","page_number":34,"box":{"x":79,"y":310,"width":124,"height":9}},{"id":"620abf94-1a8d-47fb-b31b-8cab7e8dc73d","block_type":"box","text":"...................................","page_number":34,"box":{"x":206,"y":317,"width":279,"height":2}},{"id":"4e8826d6-a418-4a45-beaf-6893f8eefce0","block_type":"box","text":"$13,121 None $560,000","page_number":34,"box":{"x":527,"y":309,"width":344,"height":11}},{"id":"19eacfb5-40ea-4ef2-a97a-8c05ce414706","block_type":"box","text":"W. Carl Kester","page_number":34,"box":{"x":78,"y":325,"width":102,"height":9}},{"id":"51f64179-1b32-4e73-ab46-3a0945d449f5","block_type":"box","text":"......................................","page_number":34,"box":{"x":182,"y":332,"width":303,"height":2}},{"id":"ca3709c6-f9d1-4efa-bfd8-f79b9d5b8f61","block_type":"box","text":"$13,512 None $671,500","page_number":34,"box":{"x":527,"y":324,"width":344,"height":11}},{"id":"32dedfab-20ca-46b5-92a4-ad38296b2405","block_type":"box","text":"Catherine A. Lynch","page_number":34,"box":{"x":79,"y":340,"width":131,"height":11}},{"id":"6fc0f788-a93a-4671-8dda-4400c02f50cb","block_type":"box","text":"6","page_number":34,"box":{"x":211,"y":340,"width":5,"height":5}},{"id":"5256e0ae-00fa-4911-beae-f615238bb114","block_type":"box","text":".................................","page_number":34,"box":{"x":223,"y":348,"width":262,"height":1}},{"id":"7d755960-d62e-433b-8221-fd4d15b6ef56","block_type":"box","text":"$12,131 None $610,000","page_number":34,"box":{"x":527,"y":339,"width":344,"height":12}},{"id":"5a0d504e-9f6c-4bbf-b172-719aa76dc7e3","block_type":"box","text":"Ar thur P. Steinmetz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":78,"y":355,"width":407,"height":9}},{"id":"4fa68ce4-8b92-4589-aa51-cd484e565667","block_type":"box","text":"$10,678 None $537,500","page_number":34,"box":{"x":527,"y":355,"width":344,"height":11}},{"id":"23812dcc-4608-4260-9bfc-407a7dd5d624","block_type":"box","text":"Interested Trustees","page_number":34,"box":{"x":70,"y":371,"width":138,"height":8}},{"id":"e8f2ab78-adf7-4a10-9574-89b9854e4354","block_type":"box","text":"Rober t Fairbairn . . .","page_number":34,"box":{"x":79,"y":386,"width":137,"height":8}},{"id":"80bbf7f2-5b13-4c9f-b6de-2906d519e6f6","block_type":"box","text":".................................","page_number":34,"box":{"x":223,"y":393,"width":262,"height":1}},{"id":"9517b7fc-8250-4b23-a30f-436fa1deb2e7","block_type":"box","text":"None None None","page_number":34,"box":{"x":541,"y":386,"width":312,"height":8}},{"id":"aab0d5fa-e918-4061-9c13-387f8acd60b5","block_type":"box","text":"John M. Perlowski . .","page_number":34,"box":{"x":78,"y":401,"width":146,"height":9}},{"id":"36aa1c1a-27d8-4461-ba73-07dcb5afec29","block_type":"box","text":"................................","page_number":34,"box":{"x":231,"y":408,"width":254,"height":1}},{"id":"1480eeb1-6b54-4a37-83de-b48299a861f8","block_type":"box","text":"None None None","page_number":34,"box":{"x":541,"y":401,"width":312,"height":9}},{"id":"cb63d6c1-13c6-4ea8-8947-65beb1ae8b02","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":425,"width":3,"height":4}},{"id":"797c1239-42fb-498b-a0a0-0fc89fc0c773","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation see the Biographical Information Char t beginning","page_number":34,"box":{"x":94,"y":425,"width":811,"height":9}},{"id":"d3299eae-1150-413d-b1f4-2b88dae4744c","block_type":"box","text":"on page [I-13].","page_number":34,"box":{"x":93,"y":435,"width":82,"height":9}},{"id":"13ce7b6c-167d-4e22-adb5-31243a8112d5","block_type":"box","text":"2","page_number":34,"box":{"x":69,"y":448,"width":3,"height":3}},{"id":"b1b68f1d-e6fd-43ca-a5f5-890f4d3c4560","block_type":"box","text":"For the Independent Trustees, this amount represents the aggregate compensation earned from the funds in the BlackRock Fixed-Income","page_number":34,"box":{"x":94,"y":448,"width":782,"height":9}},{"id":"ba68adfd-bcdc-4c1f-aa9a-c3a9df24d85b","block_type":"box","text":"Complex during the calendar year ended December 31, 2025. Of this amount, Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard, Dr. Kester,","page_number":34,"box":{"x":93,"y":458,"width":801,"height":9}},{"id":"5ea39a86-d67e-458b-8c95-2ae10d3d68ef","block_type":"box","text":"Ms. Lynch and Mr. Steinmetz deferred $200,000, $197,500, $212,500, $280,000, $546,859, $603,900 and $268,750, respectively,","page_number":34,"box":{"x":94,"y":467,"width":776,"height":10}},{"id":"6c6abc38-9dde-4994-8d26-eeda04492acd","block_type":"box","text":"pursuant to the BlackRock Fixed-Income Complex’s deferred compensation plan.","page_number":34,"box":{"x":94,"y":478,"width":457,"height":9}},{"id":"092109df-01d1-429d-bbf3-cde3460c0690","block_type":"box","text":"3","page_number":34,"box":{"x":69,"y":491,"width":3,"height":3}},{"id":"9e80b430-7e6c-4f35-aaa7-27acd49b5ffa","block_type":"box","text":"Total amount of deferred compensation payable by the BlackRock Fixed-Income Complex to Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard,","page_number":34,"box":{"x":93,"y":490,"width":810,"height":9}},{"id":"c1f7e6ba-6758-473e-8251-e72f473111d9","block_type":"box","text":"Dr. Kester, Ms. Lynch and Mr. Steinmetz is $1,055,218, $1,032,387, $1,101,752, $5,907,215, $2,544,830, $720,927 and $603,379,","page_number":34,"box":{"x":94,"y":500,"width":787,"height":10}},{"id":"7bc232bc-cebb-4e1d-aff6-00ca3e1766e9","block_type":"box","text":"respectively, as of December 31, 2025. Ms. Egan did not par ticipate in the deferred compensation plan as of December 31, 2025.","page_number":34,"box":{"x":94,"y":511,"width":748,"height":9}},{"id":"f522da80-1021-44f0-bc3a-501b133ea429","block_type":"box","text":"4","page_number":34,"box":{"x":68,"y":523,"width":4,"height":4}},{"id":"2a652a3c-ce7c-41b8-9298-bcbd7abee786","block_type":"box","text":"Ms. Egan became Chair of the Securities Lending Committee effective as of March 9, 2026.","page_number":34,"box":{"x":94,"y":523,"width":525,"height":9}},{"id":"39caa021-8b9d-4946-857f-70ef4d8efdc1","block_type":"box","text":"5","page_number":34,"box":{"x":69,"y":536,"width":3,"height":4}},{"id":"31655095-fd79-45da-aa58-96ee3c63ea0d","block_type":"box","text":"Ms. Flores became Chair of the Audit Committee effective as of March 9, 2026.","page_number":34,"box":{"x":94,"y":536,"width":455,"height":8}},{"id":"ecb7d3e8-5c78-4416-8f1b-58d2ac35f0d0","block_type":"box","text":"6","page_number":34,"box":{"x":69,"y":549,"width":3,"height":3}},{"id":"7a56e53e-212b-4e1c-bd71-9290aa800ed1","block_type":"box","text":"Ms. Lynch resigned as a Trustee of the Fund effective as of March 9, 2026.","page_number":34,"box":{"x":94,"y":548,"width":432,"height":9}},{"id":"6bc9905b-016d-4e5d-946b-6216841dbd7d","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":34,"box":{"x":69,"y":577,"width":432,"height":11}},{"id":"5c10283d-5da2-413e-a5f8-2b4fc8206c6b","block_type":"box","text":"Management Agreement","page_number":34,"box":{"x":69,"y":607,"width":180,"height":11}},{"id":"3f4caa20-37ec-4a5e-bb78-444e091f19ff","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into a management agreement with BlackRock pursuant to which","page_number":34,"box":{"x":101,"y":630,"width":791,"height":11}},{"id":"81900e67-0725-41c4-90a6-b99b1668dcbd","block_type":"box","text":"BlackRock is entitled to receive fees for the services it provides (the “Management Agreement”).","page_number":34,"box":{"x":70,"y":645,"width":689,"height":11}},{"id":"64e8d708-4dd8-44b6-a75b-7e122750cfa8","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":34,"box":{"x":102,"y":668,"width":762,"height":11}},{"id":"98c98361-b454-417a-97ba-1b94a7092224","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":34,"box":{"x":69,"y":683,"width":799,"height":11}},{"id":"a4b68247-316a-4d43-962c-409064fad8ad","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":34,"box":{"x":68,"y":698,"width":726,"height":11}},{"id":"8998e6bf-5b65-49eb-ac30-6cd0c8a93af1","block_type":"box","text":"June 30, 2027. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":34,"box":{"x":69,"y":713,"width":797,"height":11}},{"id":"8572fefa-eefe-4dc9-9625-87320feb88f9","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":34,"box":{"x":69,"y":728,"width":789,"height":11}},{"id":"73a62b82-15af-4ebe-9284-bb153ad369b7","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2027. The contractual agreements may be terminated upon 90 days’","page_number":34,"box":{"x":70,"y":743,"width":810,"height":12}},{"id":"6bcb1871-cd73-4e6a-856d-292dbb22fc30","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":34,"box":{"x":69,"y":758,"width":827,"height":12}},{"id":"aefd9eab-af9c-44de-81b3-0b3fdeeaef24","block_type":"box","text":"Fund.","page_number":34,"box":{"x":70,"y":774,"width":36,"height":8}},{"id":"1eaf2b8f-b04e-4998-abe4-68e6fd8c6d9c","block_type":"box","text":"The Manager has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":34,"box":{"x":101,"y":796,"width":792,"height":11}},{"id":"65549b32-a30d-437f-9aef-cabfac242d22","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":34,"box":{"x":68,"y":811,"width":787,"height":12}},{"id":"452e157e-5a1c-46a3-a2a7-db5388b14003","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":34,"box":{"x":70,"y":826,"width":811,"height":11}},{"id":"ff539920-04ef-4c35-871b-657a26b36d03","block_type":"box","text":"Fund’s Prospectuses)) as a percentage of average daily net assets to 1.20% for Investor A Shares, 1.95% for","page_number":34,"box":{"x":70,"y":841,"width":779,"height":12}},{"id":"b449daca-83aa-42e9-b4e5-272ff0a6ef4c","block_type":"box","text":"Investor C Shares, 0.95% for Institutional Shares and 0.90% for Class K Shares through June 30, 2027. The","page_number":34,"box":{"x":70,"y":857,"width":775,"height":11}},{"id":"84293270-003c-4da0-b560-dc0a5a9b0256","block_type":"box","text":"contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a","page_number":34,"box":{"x":69,"y":872,"width":816,"height":11}},{"id":"e73948f6-7a6e-447a-8248-1587f718d2a7","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":34,"box":{"x":68,"y":887,"width":468,"height":11}},{"id":"45cddebd-1876-4c46-ac4d-65bf0b0805c1","block_type":"box","text":"I-18","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c6be96a1-613d-4e81-9054-92892f6e924f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4450f3ec-1295-42e1-8248-98bba4c26546","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":35,"box":{"x":102,"y":45,"width":784,"height":11}},{"id":"26c96610-a8a2-4082-bbc1-e420c0d22b7f","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of BlackRock, to","page_number":35,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"20c3c87f-e245-4800-80c1-049524ec88bb","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":35,"box":{"x":70,"y":75,"width":810,"height":11}},{"id":"95f85ee2-24ab-4d8a-bd31-3649be8f7a02","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":35,"box":{"x":70,"y":90,"width":779,"height":11}},{"id":"e014dbfc-5dc6-4406-9422-0c4aa653ccc2","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":35,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"3004b0a2-399d-46bd-b1a3-294d74742a89","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":35,"box":{"x":69,"y":120,"width":486,"height":11}},{"id":"ff06d630-798f-43eb-89fe-c022a8695b0d","block_type":"box","text":"BlackRock has entered into a sub-advisory agreements with each of BlackRock International Limited (“BIL”) and","page_number":35,"box":{"x":102,"y":143,"width":796,"height":11}},{"id":"3b04405b-5041-4145-8f13-59d60503fdb5","block_type":"box","text":"BlackRock Asset Management Nor th Asia Limited (“BAMNAL” and together with BIL, the “Sub-Advisers”), pursuant to","page_number":35,"box":{"x":70,"y":158,"width":833,"height":11}},{"id":"b58db93d-dabd-472e-8d98-409010e3b9c7","block_type":"box","text":"which BlackRock pays each Sub-Adviser for providing services to BlackRock with respect to that por tion of the Fund","page_number":35,"box":{"x":68,"y":173,"width":823,"height":11}},{"id":"e133ffa8-e9e5-44ce-ab39-d41bdd47f458","block_type":"box","text":"for which it acts as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to","page_number":35,"box":{"x":68,"y":188,"width":836,"height":12}},{"id":"2e997ac4-5708-4013-b3ac-9e34fbba377c","block_type":"box","text":"BlackRock under the Management Agreement.","page_number":35,"box":{"x":70,"y":204,"width":328,"height":11}},{"id":"3bf5cf6f-7f99-441f-a7e0-9aafa87ecf5c","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust, on behalf of the Fund,","page_number":35,"box":{"x":101,"y":226,"width":806,"height":11}},{"id":"4fe321dc-802f-4fc4-bdf7-cbcf14944bdc","block_type":"box","text":"to BlackRock (which includes amounts paid by BlackRock to the Sub-Advisers), and the amounts waived and/or","page_number":35,"box":{"x":68,"y":241,"width":794,"height":11}},{"id":"62beb1e8-8ed0-41b7-81af-ed8c31308b1b","block_type":"box","text":"reimbursed, for the periods shown.","page_number":35,"box":{"x":69,"y":256,"width":248,"height":11}},{"id":"a74a6891-1ca6-4c90-a8ef-1e2e6a6ed9d9","block_type":"box","text":"Fees Paid","page_number":35,"box":{"x":593,"y":285,"width":56,"height":7}},{"id":"351dcc7b-558e-45e6-bad3-177196cce75e","block_type":"box","text":"to BlackRock","page_number":35,"box":{"x":581,"y":295,"width":80,"height":7}},{"id":"149ec437-3188-4e84-bfce-f1c4d23c347d","block_type":"box","text":"Fees Waived","page_number":35,"box":{"x":704,"y":285,"width":72,"height":7}},{"id":"b82567d5-c943-4a59-8f5a-bdecb51fdae1","block_type":"box","text":"by BlackRock","page_number":35,"box":{"x":700,"y":295,"width":80,"height":8}},{"id":"b929a327-7350-43c1-a08f-f9bb4fa16d6b","block_type":"box","text":"Fees Reimbursed","page_number":35,"box":{"x":810,"y":285,"width":99,"height":7}},{"id":"37471e46-0a79-474c-8cb5-d6e2f7d7a626","block_type":"box","text":"by BlackRock","page_number":35,"box":{"x":820,"y":295,"width":80,"height":8}},{"id":"ee277734-1e18-4b01-b167-d8f30ae9c78e","block_type":"box","text":"Fiscal Year Ended December 31, 2025","page_number":35,"box":{"x":70,"y":312,"width":273,"height":11}},{"id":"a3dc01b7-5432-418b-9cbb-80390ea66ca9","block_type":"box","text":"........................","page_number":35,"box":{"x":352,"y":320,"width":189,"height":1}},{"id":"c92b9276-d195-4622-ade4-92c1c4257147","block_type":"box","text":"$56,077,577 $136,797 $ 0","page_number":35,"box":{"x":573,"y":312,"width":313,"height":11}},{"id":"cb2df3c7-85b1-4350-be52-11cf3845507d","block_type":"box","text":"Fiscal Year Ended December 31, 2024","page_number":35,"box":{"x":70,"y":328,"width":274,"height":10}},{"id":"221e5201-54b8-46b3-996d-8628a305d72d","block_type":"box","text":"........................","page_number":35,"box":{"x":352,"y":335,"width":189,"height":1}},{"id":"2d6c3333-0901-4ad4-a611-37e115e39b36","block_type":"box","text":"$49,695,169 $ 41,375 $8,910","page_number":35,"box":{"x":573,"y":327,"width":313,"height":11}},{"id":"2064ba52-0bc0-4b75-971d-1be9dd1ccb7b","block_type":"box","text":"Fiscal Year Ended December 31, 2023","page_number":35,"box":{"x":70,"y":343,"width":273,"height":10}},{"id":"0f344382-bb91-45c4-bdb7-7361d1b9386c","block_type":"box","text":"........................","page_number":35,"box":{"x":352,"y":350,"width":189,"height":1}},{"id":"6c3ed34b-851e-4166-88b2-f5fe0f4d98f6","block_type":"box","text":"$59,292,529 $ 30,309 $4,951","page_number":35,"box":{"x":573,"y":342,"width":313,"height":11}},{"id":"e0c80ade-483e-4240-8663-d665e3966974","block_type":"box","text":"Organization and Management of Wholly Owned Subsidiary","page_number":35,"box":{"x":69,"y":374,"width":429,"height":11}},{"id":"ea55bb67-1c5f-49a6-bef7-c02a0bdf5e3f","block_type":"box","text":"The Fund intends to gain exposure to commodity markets by investing up to 25% of its total assets in the","page_number":35,"box":{"x":101,"y":397,"width":751,"height":11}},{"id":"282f4de9-4ec9-4fa2-9071-5e5cae1b5928","block_type":"box","text":"Subsidiary. The Subsidiary invests primarily in commodity-related instruments.","page_number":35,"box":{"x":69,"y":412,"width":557,"height":11}},{"id":"2010206b-073e-41bd-b698-c0aabcd920e6","block_type":"box","text":"The Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is located","page_number":35,"box":{"x":101,"y":435,"width":803,"height":11}},{"id":"ae59eea5-c0a4-4402-8cbc-6288c7dd17b6","block_type":"box","text":"at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman KYI-1104, Cayman","page_number":35,"box":{"x":69,"y":450,"width":831,"height":11}},{"id":"2b5c28f9-63cb-4981-96aa-e04d1ebdcb0e","block_type":"box","text":"Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised of John M. Perlowski and","page_number":35,"box":{"x":70,"y":465,"width":821,"height":11}},{"id":"deee73bb-0461-4739-ba07-f5c63ada204c","block_type":"box","text":"Trent Walker.","page_number":35,"box":{"x":68,"y":480,"width":91,"height":9}},{"id":"85723d21-1300-4b9a-82c8-6ca67648491a","block_type":"box","text":"The Manager provides investment management and administrative services to the Subsidiary. The Manager does","page_number":35,"box":{"x":101,"y":503,"width":808,"height":11}},{"id":"2056c4a0-6831-441b-b939-c496d5220f06","block_type":"box","text":"not receive separate compensation from the Subsidiary for providing it with investment advisory or administrative","page_number":35,"box":{"x":69,"y":518,"width":808,"height":11}},{"id":"6b8f56d0-d70c-4723-8d1d-000fe615eccb","block_type":"box","text":"services. However, the Fund pays the Manager based on the Por tfolio’s assets, respectively, including the assets","page_number":35,"box":{"x":69,"y":533,"width":809,"height":11}},{"id":"92a2f7a8-c941-4e01-96c7-86f56bf12049","block_type":"box","text":"invested in the Subsidiary. The Subsidiary entered into contracts for the provision of custody, accounting agent and","page_number":35,"box":{"x":70,"y":548,"width":820,"height":11}},{"id":"293f388d-2f3c-42a5-bef9-03fb376dfeeb","block_type":"box","text":"audit services with the same service providers that provide those services to the Fund.","page_number":35,"box":{"x":69,"y":563,"width":621,"height":11}},{"id":"8b203599-ef0a-428c-80e2-b6374ad57278","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":35,"box":{"x":101,"y":586,"width":780,"height":11}},{"id":"ff924ff9-81c9-49e2-87e3-f39b18247212","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. As a result, the Manager, in managing the","page_number":35,"box":{"x":69,"y":601,"width":750,"height":11}},{"id":"cf329754-892b-4dbb-b495-eb44f5cc5e06","block_type":"box","text":"Subsidiary’s por tfolio, is subject to the same investment policies and restrictions that apply to the management of","page_number":35,"box":{"x":69,"y":616,"width":820,"height":11}},{"id":"319c0567-3f4e-44d9-8293-670b164fb62a","block_type":"box","text":"the Fund, and, in par ticular, to the requirements relating to por tfolio leverage, liquidity, brokerage, and the timing and","page_number":35,"box":{"x":68,"y":631,"width":836,"height":11}},{"id":"4b9bc0ba-426d-40dc-afd2-d956f57eabf6","block_type":"box","text":"method of the valuation of the Subsidiary’s por tfolio investments and shares of the Subsidiary. These policies and","page_number":35,"box":{"x":69,"y":646,"width":818,"height":11}},{"id":"ca7b9217-ee31-4c36-93fa-255877d2adbc","block_type":"box","text":"restrictions are described elsewhere in detail in this SAI. The Fund and the Subsidiary test for compliance with","page_number":35,"box":{"x":69,"y":661,"width":787,"height":11}},{"id":"29e7f30a-8cc6-42e0-96b8-e8454a7a249a","block_type":"box","text":"cer tain investment restrictions on a consolidated basis.","page_number":35,"box":{"x":69,"y":677,"width":397,"height":8}},{"id":"f2d13901-6789-410a-9e5a-b5e61b861a65","block_type":"box","text":"Administration Agreement","page_number":35,"box":{"x":68,"y":707,"width":192,"height":11}},{"id":"c3301d92-ccbe-4b2d-89c6-ed1117d7b9c5","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":35,"box":{"x":102,"y":730,"width":711,"height":11}},{"id":"ec93e1c5-6d32-4209-a68c-d078da921452","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":35,"box":{"x":69,"y":744,"width":838,"height":12}},{"id":"c6cf4fca-5237-422d-aec1-0ce152a82620","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":35,"box":{"x":68,"y":760,"width":830,"height":11}},{"id":"e33fc6df-d2fd-4620-89b9-c638d9b3bce7","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":35,"box":{"x":70,"y":775,"width":813,"height":11}},{"id":"56e42dcf-b365-4377-9ec1-0258dd5be237","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":35,"box":{"x":69,"y":790,"width":837,"height":11}},{"id":"9c5f8fa6-da54-4255-9286-5427ce13ee07","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":35,"box":{"x":68,"y":805,"width":836,"height":11}},{"id":"db37652a-bc17-44ab-9435-380b4e0bdfb1","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":35,"box":{"x":68,"y":820,"width":785,"height":11}},{"id":"0182ea95-ab7e-46b0-888f-8a20ade24ff8","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":35,"box":{"x":69,"y":835,"width":765,"height":11}},{"id":"b073ac59-14f4-492c-a8d7-37ac52d6436a","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":35,"box":{"x":70,"y":850,"width":819,"height":12}},{"id":"0258931f-3f83-4322-9fb6-feadb225377c","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":35,"box":{"x":69,"y":865,"width":818,"height":12}},{"id":"b2cb5290-c53d-45a7-9d30-d791acd2d53b","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":35,"box":{"x":68,"y":881,"width":840,"height":11}},{"id":"7768eac8-87c7-4ceb-9f4d-1201d915cb34","block_type":"box","text":"reimburse the Fund for expenses.","page_number":35,"box":{"x":69,"y":896,"width":238,"height":11}},{"id":"d79c4306-e273-4196-ad5d-78f3e1208020","block_type":"box","text":"I-19","page_number":35,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"4fbd5ecc-2fe4-40db-aa7d-0e191d843b6f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9d96f7b-f44f-4734-8399-b966cf07f61b","block_type":"box","text":"Under the Administration Agreement with BlackRock, the Trust, on behalf of the Fund, pays to the Administrator a","page_number":36,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"56727f44-db1d-4f8c-a41a-2f4c37edf670","block_type":"box","text":"fee, computed daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the","page_number":36,"box":{"x":68,"y":59,"width":825,"height":12}},{"id":"06e50523-9f76-405b-85c9-16ead28489ac","block_type":"box","text":"Fund’s average daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of","page_number":36,"box":{"x":70,"y":74,"width":838,"height":12}},{"id":"1eb3629e-8d54-46fe-82a6-ef326ae230ef","block_type":"box","text":"the next $1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily","page_number":36,"box":{"x":68,"y":89,"width":821,"height":12}},{"id":"009641ec-c383-48f5-909b-25837d4ed0b2","block_type":"box","text":"net assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily","page_number":36,"box":{"x":69,"y":104,"width":816,"height":12}},{"id":"d7ac8419-ed55-49a9-9d2c-5122a4315dd2","block_type":"box","text":"net assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":36,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"2b5733a7-317e-4f25-a97a-f2f78e4a6e86","block_type":"box","text":"shares of the Fund.","page_number":36,"box":{"x":69,"y":135,"width":137,"height":9}},{"id":"f27d85a9-eb4c-476b-b11e-92692a531f7e","block_type":"box","text":"The table below sets for th information about the administration fees paid by the Trust, on behalf of the Fund, to","page_number":36,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"4312fee2-dcaf-4268-b172-88d25ed0a59d","block_type":"box","text":"BlackRock, and the amounts waived, for the past three fiscal 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$26,138","page_number":36,"box":{"x":70,"y":229,"width":811,"height":11}},{"id":"7f1b9068-2940-4afd-a122-c1f495f8c4a0","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,734,637 $53,556","page_number":36,"box":{"x":70,"y":244,"width":811,"height":11}},{"id":"8de50d26-8b8f-4db0-832f-147cbff0e532","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,454,440 $42,300","page_number":36,"box":{"x":70,"y":259,"width":811,"height":11}},{"id":"c368c2cb-bcf8-459b-b50e-11c767543d03","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":36,"box":{"x":101,"y":284,"width":708,"height":11}},{"id":"2be40873-2194-4f12-990a-395122ee3753","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and 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$0","page_number":36,"box":{"x":295,"y":780,"width":566,"height":9}},{"id":"728d81a9-2a87-42c1-b506-b89d00e84afc","block_type":"box","text":"Tom Parker, CFA 1 249 1 0 2 1","page_number":36,"box":{"x":73,"y":794,"width":784,"height":8}},{"id":"62fb11a5-ff82-45ab-bc42-e124e05cf836","block_type":"box","text":"$98.33 Million $7.26 Billion $704.03 Million $0 $3.04 Billion $704.03 Million","page_number":36,"box":{"x":295,"y":806,"width":604,"height":8}},{"id":"2da2146b-37c1-4982-80ed-1f830ef6cfe6","block_type":"box","text":"Scott Radell 12 52 9 0 1 2","page_number":36,"box":{"x":74,"y":819,"width":783,"height":7}},{"id":"6ebc3886-867f-47b0-9352-9a4f01e420de","block_type":"box","text":"$21.03 Billion $20.78 Billion $8.81 Billion $0 $156.49 Million $1.18 Billion","page_number":36,"box":{"x":297,"y":831,"width":593,"height":8}},{"id":"808405a6-d8a6-4ef5-8268-8f330472243e","block_type":"box","text":"Jeffrey Rosenberg, CFA 8 6 0 0 1 0","page_number":36,"box":{"x":73,"y":844,"width":784,"height":9}},{"id":"b78a24de-07d3-44f6-9c48-7b7daf2fccb6","block_type":"box","text":"$4.88 Billion $1.46 Billion $0 $0 $156.49 Million $0","page_number":36,"box":{"x":301,"y":856,"width":560,"height":8}},{"id":"aa9a95fc-e3d7-4589-9166-0b02dbf2d87e","block_type":"box","text":"I-20","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"eec10e1f-8621-44ad-b44f-1252a443ce9f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe9ba3b4-45bd-41cc-8f3e-5b2945ff8d28","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":37,"box":{"x":69,"y":45,"width":304,"height":11}},{"id":"c94171d5-0fca-4050-babd-4658fd5ea1e6","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of December 31, 2025.","page_number":37,"box":{"x":101,"y":67,"width":700,"height":12}},{"id":"2567d410-4a66-4cf2-b530-f897b94ee41b","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":37,"box":{"x":102,"y":90,"width":774,"height":11}},{"id":"451c3b21-9345-4563-8828-0c99ba36d2dc","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":37,"box":{"x":70,"y":105,"width":837,"height":11}},{"id":"4cd7879a-40f9-497e-8b85-212d143e6528","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":37,"box":{"x":69,"y":120,"width":823,"height":11}},{"id":"8d598acc-b5fe-4393-9fd5-eccfcef3cb97","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":37,"box":{"x":69,"y":135,"width":799,"height":11}},{"id":"2b7f7467-371e-4a5c-81cf-fef778aa7620","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":37,"box":{"x":70,"y":150,"width":670,"height":12}},{"id":"5b6b899c-cb96-432f-8563-9275437d5dca","block_type":"box","text":"Base Compensation.","page_number":37,"box":{"x":102,"y":173,"width":148,"height":11}},{"id":"95a5dcfa-8758-4b44-834f-31bb92327770","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":37,"box":{"x":257,"y":173,"width":640,"height":11}},{"id":"b5043aa9-405f-4d32-91f3-58aa345b39d6","block_type":"box","text":"firm.","page_number":37,"box":{"x":68,"y":188,"width":32,"height":9}},{"id":"8da1e8f7-529c-4d87-b853-747cffeb8c1f","block_type":"box","text":"Discretionary Incentive Compensation.","page_number":37,"box":{"x":102,"y":211,"width":281,"height":11}},{"id":"55f74740-c620-4b73-9f87-48c6d3a1e0b5","block_type":"box","text":"Discretionary incentive compensation is a function of several","page_number":37,"box":{"x":391,"y":211,"width":432,"height":11}},{"id":"e18a5c77-8890-456c-ae13-6c7af2478d21","block_type":"box","text":"components: the per formance of BlackRock, Inc., the per formance of the por tfolio manager’s group within","page_number":37,"box":{"x":69,"y":226,"width":759,"height":11}},{"id":"1ed1fdcd-26ef-45ee-b360-c3415edbca1a","block_type":"box","text":"BlackRock, the investment per formance, including risk-adjusted returns, of the firm’s assets under management or","page_number":37,"box":{"x":70,"y":241,"width":821,"height":11}},{"id":"423f2f59-5abc-4ecf-a499-3c3f51ad51ea","block_type":"box","text":"supervision by that por tfolio manager relative to predetermined benchmarks, and the individual’s per formance and","page_number":37,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"f9fa89b6-c2a3-4557-aa61-2e99846b890d","block_type":"box","text":"contribution to the overall per formance of these por tfolios and BlackRock. In most cases, these benchmarks are the","page_number":37,"box":{"x":69,"y":271,"width":832,"height":11}},{"id":"38446c41-e383-4225-9201-18ed9c30da0e","block_type":"box","text":"same as the benchmark or benchmarks against which the per formance of the Funds or other accounts managed by","page_number":37,"box":{"x":69,"y":286,"width":824,"height":12}},{"id":"e847a6c1-0e0d-4abe-877c-cd1b34564ae5","block_type":"box","text":"the por tfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":37,"box":{"x":68,"y":302,"width":832,"height":11}},{"id":"711e3dd8-d6fb-41fb-b494-9831c7a6ac28","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":37,"box":{"x":69,"y":317,"width":818,"height":11}},{"id":"2c111e77-322c-43f3-9b24-b67cd74c2877","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance of fixed income","page_number":37,"box":{"x":69,"y":332,"width":833,"height":11}},{"id":"3f3e5456-4fe9-43ff-9ee1-1d8f77495b78","block_type":"box","text":"funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods,","page_number":37,"box":{"x":68,"y":347,"width":822,"height":11}},{"id":"2256fc0e-068c-44a2-936f-88ef26002226","block_type":"box","text":"as applicable. With respect to these por tfolio managers, such benchmarks for the Fund and other accounts are:","page_number":37,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"15b25494-5012-41b3-8366-20461464d79b","block_type":"box","text":"Portfolio Manager Benchmarks","page_number":37,"box":{"x":69,"y":390,"width":267,"height":9}},{"id":"9288b24d-dcdf-486a-8159-653f958b95d3","block_type":"box","text":"Chad Meuse","page_number":37,"box":{"x":69,"y":407,"width":88,"height":9}},{"id":"7ce7696a-e955-4244-9be2-149204b13f07","block_type":"box","text":"Tom Parker, CFA","page_number":37,"box":{"x":68,"y":422,"width":115,"height":10}},{"id":"4ff73fe9-e78d-4667-a3fe-db0b1f881ee5","block_type":"box","text":"Jeffrey Rosenberg, CFA","page_number":37,"box":{"x":69,"y":437,"width":165,"height":11}},{"id":"a3e6b176-3911-4408-8dc7-d61a0429b88a","block_type":"box","text":"ICE BofA 3-Month U.S. Treasury Bill Index; FTSE 3-Month U.S. Treasury Bill Index.","page_number":37,"box":{"x":265,"y":407,"width":577,"height":11}},{"id":"55b9f617-bc7a-4775-83a5-516a7309a864","block_type":"box","text":"Scott Radell A combination of market-based indices (e.g., Bloomberg U.S. Aggregate Bond Index, the","page_number":37,"box":{"x":69,"y":460,"width":821,"height":11}},{"id":"ebea0ae5-4912-4ba4-80ff-09d3b2e3d5ef","block_type":"box","text":"Bloomberg U.S. TIPS 0-5 Years Index), cer tain customized indices and cer tain fund","page_number":37,"box":{"x":265,"y":475,"width":589,"height":11}},{"id":"10575fe0-8ccf-4a80-9ecb-4184f2c0e784","block_type":"box","text":"industry peer groups.","page_number":37,"box":{"x":265,"y":490,"width":150,"height":11}},{"id":"0eb3bcd6-f741-4c9b-a6d6-4087a3f45c47","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":37,"box":{"x":102,"y":514,"width":389,"height":11}},{"id":"3fcc51fb-8d84-4945-ab80-bdbf4f5aa526","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":37,"box":{"x":499,"y":514,"width":383,"height":11}},{"id":"3601ce9d-e277-47ee-aa0a-7d8f0642c7be","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":37,"box":{"x":70,"y":529,"width":815,"height":11}},{"id":"d8fc7fca-b6e1-46f5-9a76-9d56103087dd","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":37,"box":{"x":68,"y":544,"width":522,"height":11}},{"id":"14457f46-9144-4e20-8f02-a1966ce5e710","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":37,"box":{"x":102,"y":567,"width":760,"height":11}},{"id":"b014f848-ebe8-438e-af69-096d52af2073","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":582,"width":795,"height":11}},{"id":"6419ad6d-1da8-4dd9-9673-13e75e7f9fa9","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":37,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"ac84a4d8-e8be-439d-a368-0459e8e92df3","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":37,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"ccfc0e23-1c9f-4135-b1ca-a11f7b1da7a4","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":37,"box":{"x":68,"y":627,"width":839,"height":12}},{"id":"e71f83fc-b311-4686-ad3a-4ead2f9aacf5","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":37,"box":{"x":69,"y":642,"width":802,"height":12}},{"id":"7c758c48-982d-4ad9-80f7-4df3addc6ef7","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":37,"box":{"x":70,"y":658,"width":820,"height":11}},{"id":"f84037ce-379b-486c-9080-544fec20c4f8","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":673,"width":801,"height":11}},{"id":"408fbddf-3238-42c5-99b4-ddad8e7cb050","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":37,"box":{"x":70,"y":688,"width":831,"height":11}},{"id":"521e9476-dde8-488d-8023-fd76db153d6a","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":37,"box":{"x":69,"y":703,"width":479,"height":11}},{"id":"0205a66c-6f3e-4a20-bb8c-b8ebf2252f73","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":37,"box":{"x":102,"y":726,"width":785,"height":11}},{"id":"e8e7dc63-0a16-46c2-8919-609a11c1febf","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":741,"width":836,"height":11}},{"id":"6cee2a07-6208-401b-8a30-538200eb540c","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":37,"box":{"x":68,"y":756,"width":821,"height":11}},{"id":"365709b7-8a07-4a6b-acc6-9de88fd1b303","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":771,"width":829,"height":11}},{"id":"7a61f5dd-ba35-443f-b529-aba22253de38","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":37,"box":{"x":70,"y":786,"width":835,"height":11}},{"id":"4883501d-2541-4fab-8344-251a9a03de79","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":37,"box":{"x":69,"y":801,"width":414,"height":11}},{"id":"a5cc9fa5-f774-45fd-bd53-3dd2ad266dbd","block_type":"box","text":"Other Compensation Benefits.","page_number":37,"box":{"x":101,"y":824,"width":218,"height":11}},{"id":"31f983e8-63b2-4093-9a40-2879e74e1984","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":37,"box":{"x":327,"y":824,"width":552,"height":11}},{"id":"a9aa6f39-7aeb-43f7-8379-76b18df7cc92","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":37,"box":{"x":69,"y":839,"width":582,"height":11}},{"id":"fa2d5f08-37aa-4889-b17b-86b0713e3562","block_type":"box","text":"Incentive Savings Plans","page_number":37,"box":{"x":102,"y":862,"width":167,"height":11}},{"id":"09997540-a106-4508-943c-d9cc6434d9f6","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":37,"box":{"x":274,"y":862,"width":614,"height":11}},{"id":"ca31b117-af1c-4acd-ac46-e44f365bfb14","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":37,"box":{"x":69,"y":877,"width":831,"height":11}},{"id":"65d0ad07-b868-4459-b1cd-7a74d133c803","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":37,"box":{"x":70,"y":892,"width":785,"height":11}},{"id":"266ee0f1-83a3-4d88-bf3c-cdb9d2fec490","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":37,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"f0224905-2e67-4e59-9ac4-85d9d1051ae1","block_type":"box","text":"I-21","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0ea6494a-298e-49a6-9747-967c69723358","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"30d37992-a1f5-4cc0-ba03-03aabecdc14c","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":45,"width":799,"height":11}},{"id":"736104b9-aedf-4a7c-b750-2a446eec13bf","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":59,"width":831,"height":12}},{"id":"f4411920-fd61-450c-bc98-519389a9991d","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":75,"width":798,"height":11}},{"id":"5a8a1f88-64e9-4d91-ba3a-d2bbaa8133d4","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":38,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"e311fc19-2191-4d67-8591-8fe897343d72","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":38,"box":{"x":68,"y":105,"width":793,"height":11}},{"id":"d8de3f66-15b9-441c-95ba-802b098fe951","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":120,"width":832,"height":11}},{"id":"c03eaa6d-547a-4483-ae04-cc47257b2338","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":38,"box":{"x":68,"y":135,"width":805,"height":11}},{"id":"9f89e219-bf22-4310-bb54-da2f32694b42","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":38,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"98530d83-8752-4d62-acb3-dc4be521543e","block_type":"box","text":"par ticipate in these plans.","page_number":38,"box":{"x":70,"y":166,"width":185,"height":11}},{"id":"0e438866-b20b-41ac-8970-3df104e930af","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":38,"box":{"x":69,"y":196,"width":268,"height":11}},{"id":"25ee2c36-cf50-4d92-8dfa-638474a25614","block_type":"box","text":"As of December 31, 2025, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":38,"box":{"x":101,"y":218,"width":775,"height":12}},{"id":"0f418312-e135-41ca-a6c3-d7d8207394cc","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":38,"box":{"x":69,"y":234,"width":519,"height":11}},{"id":"173c266f-5108-45dc-9a91-35b2f8047d33","block_type":"box","text":"Portfolio Manager","page_number":38,"box":{"x":69,"y":272,"width":105,"height":9}},{"id":"f5e1f904-e8a5-4264-8b31-841598ade3e3","block_type":"box","text":"Dollar Range of Equity","page_number":38,"box":{"x":758,"y":262,"width":129,"height":9}},{"id":"6c99bfc2-a51a-4c74-b0b7-f0e7b350d5cc","block_type":"box","text":"Securities Beneficially Owned","page_number":38,"box":{"x":735,"y":272,"width":173,"height":9}},{"id":"84eeabe8-800f-466b-bb57-00265d9ee556","block_type":"box","text":"Chad Meuse . . .","page_number":38,"box":{"x":69,"y":290,"width":113,"height":9}},{"id":"eeec93d3-3af4-41cb-b349-9dac4f98925b","block_type":"box","text":"................................................................","page_number":38,"box":{"x":189,"y":297,"width":515,"height":2}},{"id":"3e3439c8-731e-4bad-abd4-cb0c43a5d0ee","block_type":"box","text":"$100,001 - $500,000","page_number":38,"box":{"x":743,"y":289,"width":159,"height":11}},{"id":"9c67ac06-4a4d-4493-8f9a-f65b6bda0400","block_type":"box","text":"Tom Parker, CFA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":68,"y":305,"width":636,"height":10}},{"id":"aaf3deee-a940-4a5a-b3b6-0719972cf731","block_type":"box","text":"$500,001 - $1,000,000","page_number":38,"box":{"x":736,"y":304,"width":173,"height":11}},{"id":"e3c6d39e-36ad-46b6-996f-bbf291b1f6e1","block_type":"box","text":"Scott Radell . . .","page_number":38,"box":{"x":69,"y":320,"width":113,"height":9}},{"id":"a44ef3d6-66c7-46f0-ba62-7a6c79d799c3","block_type":"box","text":"................................................................","page_number":38,"box":{"x":189,"y":327,"width":515,"height":2}},{"id":"e6ce1c1a-bdb7-4713-a909-c33b1ef966e2","block_type":"box","text":"$10,001 - $50,000","page_number":38,"box":{"x":753,"y":319,"width":139,"height":11}},{"id":"00e5bb96-4f78-42fb-9613-32b1eb9bb0ad","block_type":"box","text":"Jeffrey Rosenberg, CFA","page_number":38,"box":{"x":69,"y":335,"width":165,"height":11}},{"id":"d299ce96-889b-4d40-8fb4-e55c1c6025ea","block_type":"box","text":"..........................................................","page_number":38,"box":{"x":238,"y":342,"width":466,"height":2}},{"id":"37ebabc1-d0ce-45f9-b3b0-9d1ddcd53748","block_type":"box","text":"$100,001 - $500,000","page_number":38,"box":{"x":743,"y":334,"width":159,"height":12}},{"id":"5b5095ad-59f3-482d-a19d-3f7d48cfd44c","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":38,"box":{"x":69,"y":366,"width":403,"height":12}},{"id":"d42106ab-8799-4b39-bb89-dc85d02e8c53","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":38,"box":{"x":102,"y":389,"width":727,"height":11}},{"id":"753bafbc-d891-4914-9948-022a5195c9a0","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":404,"width":814,"height":12}},{"id":"40432e81-dfb8-4af0-89b0-0cd9690669be","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":38,"box":{"x":70,"y":419,"width":837,"height":11}},{"id":"b9495fe5-e5ce-475c-91b4-7078bef2c143","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":38,"box":{"x":70,"y":435,"width":810,"height":11}},{"id":"db7b0732-8edc-4c04-963f-66fbd74fe33b","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":38,"box":{"x":69,"y":450,"width":782,"height":11}},{"id":"16969874-88b4-48e8-931c-b7c9f0b36c61","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":38,"box":{"x":69,"y":465,"width":830,"height":11}},{"id":"8edf7c07-baf8-427c-be29-252e79b638be","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":480,"width":828,"height":11}},{"id":"7d25f204-5883-4b11-b9fa-ac07cd81f4c1","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":38,"box":{"x":68,"y":495,"width":834,"height":11}},{"id":"764f1142-a932-49a1-9cc6-506390d44ece","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":38,"box":{"x":70,"y":510,"width":777,"height":11}},{"id":"147c3e5d-b0cf-450f-8238-1803c7a6c1b6","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":525,"width":821,"height":12}},{"id":"b284ec64-3652-45aa-95ad-480208750152","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":38,"box":{"x":69,"y":541,"width":819,"height":10}},{"id":"334b9e0c-07a0-4a34-bf70-cca55d371e22","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":555,"width":832,"height":12}},{"id":"94d03a7e-ff7e-4bf2-84c3-bf29b0aae352","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":38,"box":{"x":68,"y":571,"width":804,"height":11}},{"id":"899b6eb3-09e1-4341-9cfe-cef9c7f09a20","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":586,"width":760,"height":11}},{"id":"8f6c97f9-f5a3-410c-ad8c-2562d9aa6fde","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":601,"width":834,"height":11}},{"id":"a32a5656-c93b-4808-b84b-33b9fafd40c7","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":616,"width":836,"height":11}},{"id":"afd9434b-01ec-464c-b0ae-6abee1a3a487","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":631,"width":822,"height":11}},{"id":"714b7a52-81d5-4afd-9a85-01dfc2838feb","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":38,"box":{"x":70,"y":646,"width":835,"height":11}},{"id":"749ff054-fa99-4aa9-b54b-ee3f0b7837f2","block_type":"box","text":"be opposed to the strategy utilized for a fund. It should also be noted that Messrs. Parker, Radell, Rosenberg and","page_number":38,"box":{"x":69,"y":661,"width":810,"height":12}},{"id":"5574cf4a-1c8d-4216-8ee8-25d40b04fa6a","block_type":"box","text":"Meuse may be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/","page_number":38,"box":{"x":70,"y":676,"width":838,"height":12}},{"id":"9b5cd809-2aef-4be6-9007-b47118f49b09","block_type":"box","text":"or long only accounts, subject to incentive fees. Messrs. Parker, Radell, Rosenberg and Meuse may therefore be","page_number":38,"box":{"x":69,"y":692,"width":802,"height":11}},{"id":"3d8d3373-ed2d-447f-88b4-f9ab6725315a","block_type":"box","text":"entitled to receive a por tion of any incentive fees earned on such accounts.","page_number":38,"box":{"x":69,"y":707,"width":538,"height":11}},{"id":"cde8aa40-38c9-4d45-b6a6-d8ea3ac06f68","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":38,"box":{"x":101,"y":729,"width":788,"height":12}},{"id":"768c7e80-79c1-4757-8974-b45ad6a38907","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":38,"box":{"x":70,"y":744,"width":839,"height":11}},{"id":"be851d88-af1f-4154-ba4c-d7a1702b39f3","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":38,"box":{"x":68,"y":760,"width":823,"height":11}},{"id":"31ef0503-1f54-40ee-9c91-9aa8cfefc60c","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":38,"box":{"x":68,"y":775,"width":812,"height":11}},{"id":"52c1cf74-9688-4676-96a0-51695a78e1bf","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":38,"box":{"x":69,"y":790,"width":777,"height":11}},{"id":"3b6bf3b6-b599-4789-a4a4-66ed60da2fbd","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":38,"box":{"x":70,"y":805,"width":826,"height":11}},{"id":"efc892ca-5686-40b5-8627-6ae41e311198","block_type":"box","text":"Accounting Services","page_number":38,"box":{"x":68,"y":835,"width":150,"height":11}},{"id":"1f95418b-bb55-4b43-b612-b45214d51631","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) serves as the accounting services provider for the Fund.","page_number":38,"box":{"x":102,"y":858,"width":791,"height":11}},{"id":"ff3b2ddb-dd76-4fea-9ace-09adf1ac4f95","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":38,"box":{"x":69,"y":873,"width":824,"height":11}},{"id":"a45a8aea-29c5-4177-8668-ccdfc215b3ee","block_type":"box","text":"custodian); records general ledger entries; calculates daily net income; reconciles activity to the trial balance;","page_number":38,"box":{"x":69,"y":888,"width":779,"height":11}},{"id":"a0ec35ea-3282-4ef7-a328-9ef3c89dc56e","block_type":"box","text":"calculates and publishes daily net asset value; prepares account balances; and provides such other accounting","page_number":38,"box":{"x":69,"y":903,"width":796,"height":12}},{"id":"457f89aa-a955-4df7-81e9-f1da7f17ef32","block_type":"box","text":"I-22","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7a088ede-dc9a-411c-9202-5cff8b223fe5","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"97e61c17-d066-4bb9-96bd-8a331c20a694","block_type":"box","text":"services as may be required. In connection with its accounting services, State Street also provides cer tain","page_number":39,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"eecf1be6-af5e-48bd-9ad3-be691a9daaa2","block_type":"box","text":"administration services.","page_number":39,"box":{"x":69,"y":60,"width":170,"height":9}},{"id":"5880efdb-2809-493e-b666-cc263930a460","block_type":"box","text":"The table below shows the amounts paid by the Fund to State Street for accounting services for the past three","page_number":39,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"96be4ab4-983a-46dc-b265-9ece9eb36546","block_type":"box","text":"fiscal years:","page_number":39,"box":{"x":68,"y":98,"width":85,"height":11}},{"id":"0eb7bef4-a235-470f-8d56-b5accaf6574b","block_type":"box","text":"Fees Paid to State Street","page_number":39,"box":{"x":761,"y":126,"width":148,"height":7}},{"id":"1c6b1e4f-5381-4426-b526-b9d6742b3e22","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":144,"width":456,"height":10}},{"id":"aacb80ce-a5d5-44d0-823c-49448894b801","block_type":"box","text":".........................","page_number":39,"box":{"x":532,"y":151,"width":198,"height":1}},{"id":"b921cf23-5017-443a-a921-9cbb9df1ab70","block_type":"box","text":"$781,161","page_number":39,"box":{"x":799,"y":143,"width":72,"height":11}},{"id":"d7192054-5dc1-4176-99e0-417911eb8325","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":159,"width":456,"height":10}},{"id":"421746fb-493c-4bb1-8c37-825e778d8718","block_type":"box","text":".........................","page_number":39,"box":{"x":532,"y":166,"width":198,"height":2}},{"id":"3d62cb58-1e2e-4220-9c70-2bd0fce1480d","block_type":"box","text":"$646,050","page_number":39,"box":{"x":799,"y":158,"width":72,"height":11}},{"id":"9c9e30f9-0933-498d-8134-e195b284b7ca","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . .","page_number":39,"box":{"x":70,"y":174,"width":456,"height":10}},{"id":"1b59385b-2a70-454f-a704-ae2ca0c4e9ae","block_type":"box","text":".........................","page_number":39,"box":{"x":532,"y":181,"width":198,"height":2}},{"id":"581a0c6c-7c37-45aa-9452-c70cb7339add","block_type":"box","text":"$817,435","page_number":39,"box":{"x":799,"y":173,"width":72,"height":11}},{"id":"bbb979e0-21d2-4e21-b691-534332a1ff86","block_type":"box","text":"Custodians","page_number":39,"box":{"x":69,"y":205,"width":80,"height":9}},{"id":"79d63bb6-8be1-4533-9dd5-558ff211b5d9","block_type":"box","text":"State Street, which has its principal place of business at One Congress Street, Suite 1, Boston, Massachusetts","page_number":39,"box":{"x":102,"y":228,"width":797,"height":11}},{"id":"0aa60f11-bfd7-4d9b-bcc1-c64cb44210fe","block_type":"box","text":"02114-2016, serves as the custodian for the Fund. State Street, among other responsibilities, maintains a custody","page_number":39,"box":{"x":69,"y":243,"width":827,"height":11}},{"id":"65b742d9-7c44-4b58-8fbd-21e6210cdc88","block_type":"box","text":"account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase and upon","page_number":39,"box":{"x":69,"y":258,"width":826,"height":11}},{"id":"a7fe2ed1-4740-4692-ab4a-7c96d267ca01","block_type":"box","text":"sale or maturity, and collects and receives all income and other payments and distributions on account of the assets","page_number":39,"box":{"x":69,"y":273,"width":832,"height":11}},{"id":"a06dd86c-41f8-4f0e-91b5-0da559a5ed9d","block_type":"box","text":"of the Fund.","page_number":39,"box":{"x":69,"y":288,"width":83,"height":9}},{"id":"50380e8c-4f29-4128-ba71-75ce24879082","block_type":"box","text":"The Bank of New York Mellon, which has its principal offices at 240 Greenwich Street, New York, NY 10286,","page_number":39,"box":{"x":101,"y":311,"width":771,"height":11}},{"id":"7c1ebcf3-c64d-4928-867c-aef65e165b1b","block_type":"box","text":"serves as custodian solely with respect to the Fund’s assets posted as initial margin for non-centrally cleared over","page_number":39,"box":{"x":69,"y":326,"width":821,"height":11}},{"id":"814600cd-be55-4062-93cb-d43d53d2a774","block_type":"box","text":"the-counter derivative contracts.","page_number":39,"box":{"x":68,"y":342,"width":227,"height":8}},{"id":"a8c10b33-d215-464a-a30c-8fcada0a906a","block_type":"box","text":"BNY, which has its principal place of business at 118 Flanders Road, Westborough, Massachusetts 01581,","page_number":39,"box":{"x":102,"y":364,"width":767,"height":11}},{"id":"b96dbea2-526d-4ec3-8140-1e9d1d7a65df","block_type":"box","text":"serves as transfer and dividend disbursing agent for the Fund.","page_number":39,"box":{"x":69,"y":379,"width":442,"height":11}},{"id":"f7e2a33f-a0ca-451b-bc0f-09ba3eaebdf1","block_type":"box","text":"Credit Agreement","page_number":39,"box":{"x":69,"y":409,"width":129,"height":11}},{"id":"2dccf054-6c2e-4f8f-a32d-d2cdf9cc9824","block_type":"box","text":"The Trust, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":39,"box":{"x":101,"y":432,"width":757,"height":11}},{"id":"44807ad8-ada2-4156-a1e8-6c51c9b6e90f","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":39,"box":{"x":69,"y":446,"width":817,"height":12}},{"id":"f9e9b7a3-1566-4fac-92fb-3d206650ed91","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":462,"width":743,"height":12}},{"id":"6486f2c1-1d0f-4df4-bae5-168e8d7e48d8","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":39,"box":{"x":69,"y":477,"width":825,"height":12}},{"id":"8bb90238-11f5-480e-96b2-c307a1ee43dc","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":39,"box":{"x":68,"y":492,"width":818,"height":12}},{"id":"eed147d9-c0e9-4f2d-817c-51e346301acc","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":39,"box":{"x":70,"y":508,"width":761,"height":11}},{"id":"835d2bd4-b2b2-4c28-9a1b-82b471b90053","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":39,"box":{"x":69,"y":523,"width":768,"height":11}},{"id":"7f76fcfe-3581-4495-91ae-bc99d4bdb7cc","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":39,"box":{"x":68,"y":538,"width":825,"height":11}},{"id":"bcd7fc19-a490-4a84-a61d-29459a3f1cc1","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":39,"box":{"x":69,"y":553,"width":805,"height":11}},{"id":"a59f9ed1-7e3e-49c2-967a-b6faa347c1b4","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":39,"box":{"x":69,"y":568,"width":838,"height":11}},{"id":"1e55e46a-e319-4010-b3e0-50475fe5a327","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":39,"box":{"x":68,"y":583,"width":801,"height":12}},{"id":"c1c5550e-148e-4c98-8c08-bffef428f774","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":39,"box":{"x":69,"y":598,"width":833,"height":12}},{"id":"1c9a87d9-621b-4284-b462-6fad7909979e","block_type":"box","text":"charged interest at a variable rate.","page_number":39,"box":{"x":69,"y":614,"width":245,"height":11}},{"id":"15dbc762-5e5a-4920-a9ca-5241f1644167","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":39,"box":{"x":68,"y":644,"width":491,"height":11}},{"id":"b87c0609-4519-4263-b08a-44f099ecb340","block_type":"box","text":"Distribution Agreement and Distribution and Service Plan.","page_number":39,"box":{"x":102,"y":666,"width":421,"height":11}},{"id":"b9442a33-02b0-4207-8b67-682464b4baf4","block_type":"box","text":"The Trust has entered into a distribution agreement","page_number":39,"box":{"x":529,"y":667,"width":368,"height":11}},{"id":"ebb45e5d-d1c0-46ee-b1c7-15b494e0f9fd","block_type":"box","text":"with BlackRock Investments, LLC (“BRIL,” or the “Distributor”) under which BRIL, as agent, offers shares of the Fund","page_number":39,"box":{"x":68,"y":681,"width":834,"height":12}},{"id":"d3236557-78d1-4a9e-9eab-523f52c8cbb7","block_type":"box","text":"on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is not","page_number":39,"box":{"x":69,"y":697,"width":774,"height":11}},{"id":"ea2b784b-767b-4f83-95df-a9103a4360dc","block_type":"box","text":"obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New York,","page_number":39,"box":{"x":69,"y":712,"width":822,"height":11}},{"id":"dbe23da4-61da-4e6a-8a27-84957d10da00","block_type":"box","text":"New York 10001. BRIL is an affiliate of BlackRock.","page_number":39,"box":{"x":70,"y":727,"width":359,"height":9}},{"id":"d0184ffc-e7fb-4f8b-8e75-b4d2d0daefeb","block_type":"box","text":"The Trust may also pay shareholder servicing fees (also referred to as general shareholder liaison services fees)","page_number":39,"box":{"x":101,"y":749,"width":805,"height":12}},{"id":"7a29da62-dbbe-4bda-993a-0221c4e0a4de","block_type":"box","text":"to affiliated and unaffiliated brokers, dealers, financial institutions, insurance companies, retirement plan record","page_number":39,"box":{"x":68,"y":765,"width":808,"height":11}},{"id":"df780a57-bf35-4e47-8f91-cb0bddc1cb7f","block_type":"box","text":"keepers and other financial intermediaries (including BlackRock, BRIL and their affiliates) (collectively, “Service","page_number":39,"box":{"x":69,"y":780,"width":791,"height":11}},{"id":"379f89d1-3f28-49e1-87b4-8914136d5342","block_type":"box","text":"Organizations”) for cer tain suppor t services rendered by Service Organizations to their customers who are the","page_number":39,"box":{"x":69,"y":795,"width":786,"height":11}},{"id":"933ef50a-8372-4a41-931c-d74a57026839","block_type":"box","text":"beneficial owners of Investor A and Investor C of the Funds.","page_number":39,"box":{"x":69,"y":810,"width":423,"height":9}},{"id":"84817eba-67f9-4885-8a93-19a2e6d88ad8","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":39,"box":{"x":102,"y":833,"width":773,"height":11}},{"id":"97e4c59c-1edc-4d37-98f2-897fab4e03f7","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":39,"box":{"x":69,"y":848,"width":804,"height":11}},{"id":"326d21f3-7677-4fac-8147-fd49574b1cc2","block_type":"box","text":"I-23","page_number":39,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"d3b9f763-a789-45ab-9f2b-e946674ae3fd","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0913925-f966-40ab-a944-7b0056731cd6","block_type":"box","text":"Investor A Shares","page_number":40,"box":{"x":654,"y":49,"width":102,"height":7}},{"id":"aaa7651b-f990-4a15-a800-4d42daeb4f74","block_type":"box","text":"Gross Sales","page_number":40,"box":{"x":500,"y":85,"width":68,"height":7}},{"id":"06782b99-c9bf-4f74-94bb-052fbb11ae6d","block_type":"box","text":"Charges","page_number":40,"box":{"x":510,"y":95,"width":48,"height":9}},{"id":"c59ce798-7ebe-4b7a-bd05-ff60466e9d83","block_type":"box","text":"Collected","page_number":40,"box":{"x":507,"y":105,"width":54,"height":7}},{"id":"d1deecda-ac6c-43d6-8c5e-517d3f0e2110","block_type":"box","text":"Sales Charges","page_number":40,"box":{"x":598,"y":85,"width":84,"height":9}},{"id":"50e0472d-cde4-4d31-bf8f-9c89b90bf841","block_type":"box","text":"Retained by","page_number":40,"box":{"x":606,"y":95,"width":69,"height":9}},{"id":"1fab68cb-8817-488d-bcd7-41761e236004","block_type":"box","text":"BRIL","page_number":40,"box":{"x":627,"y":105,"width":27,"height":7}},{"id":"bfc6c62d-bbcc-4fd1-aa72-681b11fc890c","block_type":"box","text":"Sales Charges","page_number":40,"box":{"x":711,"y":85,"width":84,"height":9}},{"id":"3fb0da36-ac8a-42dd-885c-04479bf853b8","block_type":"box","text":"Paid to","page_number":40,"box":{"x":734,"y":95,"width":40,"height":7}},{"id":"efbcab57-6a93-4c61-a53f-b200df24c9d8","block_type":"box","text":"Affiliates","page_number":40,"box":{"x":727,"y":105,"width":52,"height":7}},{"id":"62e4b932-a232-4416-9301-7e4ca70fd552","block_type":"box","text":"CDSCs","page_number":40,"box":{"x":847,"y":65,"width":40,"height":7}},{"id":"844acf9b-ae27-4bb6-977c-e353df02a051","block_type":"box","text":"Received on","page_number":40,"box":{"x":832,"y":75,"width":70,"height":7}},{"id":"20f0a119-ddf7-499e-b226-53e8b5342b59","block_type":"box","text":"Redemption of","page_number":40,"box":{"x":826,"y":85,"width":84,"height":9}},{"id":"f217a755-eb13-4636-804d-0dc5669444c4","block_type":"box","text":"Load-Waived","page_number":40,"box":{"x":832,"y":95,"width":71,"height":7}},{"id":"e222ab9e-a058-4adb-9098-a52210589380","block_type":"box","text":"Shares","page_number":40,"box":{"x":847,"y":105,"width":40,"height":7}},{"id":"bb38bf2a-9fcf-4e5c-a49d-c7352ea92668","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . $28,676 $2,370 $2,370 $ 0","page_number":40,"box":{"x":70,"y":122,"width":823,"height":11}},{"id":"6dfca7e7-3457-4aca-a582-47788944a059","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . $28,075 $2,281 $2,281 $ 0","page_number":40,"box":{"x":70,"y":137,"width":823,"height":11}},{"id":"955e4edb-b24c-43bf-91cc-71d718caa74c","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . $30,265 $2,780 $2,780 $1,714","page_number":40,"box":{"x":70,"y":152,"width":824,"height":11}},{"id":"541228f7-cac6-4f08-bc9c-08024c830d68","block_type":"box","text":"Investor C Shares","page_number":40,"box":{"x":761,"y":183,"width":102,"height":7}},{"id":"41b587cc-d5cb-4196-87bb-699953c2e96d","block_type":"box","text":"CDSCs Received","page_number":40,"box":{"x":715,"y":198,"width":96,"height":7}},{"id":"02fcdef8-f9a1-478e-afc5-d2e0ab70d051","block_type":"box","text":"by BRIL","page_number":40,"box":{"x":741,"y":208,"width":44,"height":9}},{"id":"bbb8a50f-f955-4c24-9731-47c28e237913","block_type":"box","text":"CDCs Paid","page_number":40,"box":{"x":845,"y":198,"width":61,"height":7}},{"id":"fa760306-a84d-45a8-9f10-69b045889edc","block_type":"box","text":"to Affiliates","page_number":40,"box":{"x":841,"y":208,"width":68,"height":7}},{"id":"bc321c07-ea14-42f5-aaac-33ad9aa52ed8","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":226,"width":442,"height":11}},{"id":"fb38a148-3488-4347-b841-bc97716d02b4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $1,786 $1,786","page_number":40,"box":{"x":519,"y":225,"width":383,"height":12}},{"id":"95b6fb84-9926-455c-977c-064a7313ee57","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":241,"width":442,"height":11}},{"id":"fd48fd3c-002a-4c09-85e0-593f448ef9b4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $ 604 $ 604","page_number":40,"box":{"x":519,"y":241,"width":383,"height":10}},{"id":"0b7a5aac-722a-4b9a-a874-32a48cd898a7","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":70,"y":256,"width":442,"height":11}},{"id":"4111a1a1-2a84-4d4e-9a07-ae3992f0632f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . $3,939 $3,939","page_number":40,"box":{"x":519,"y":256,"width":383,"height":11}},{"id":"d05f1ada-1aec-440f-b5e2-a47fce60f89c","block_type":"box","text":"The table below provides information for the fiscal year ended December 31, 2025 about the 12b-1 fees the","page_number":40,"box":{"x":101,"y":280,"width":774,"height":11}},{"id":"56192566-ac14-43f5-8080-99edcd35c65a","block_type":"box","text":"Fund paid to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for","page_number":40,"box":{"x":70,"y":295,"width":800,"height":11}},{"id":"46b959fa-b702-4517-9984-785c4ab43ac1","block_type":"box","text":"providing shareholder servicing activities for Investor A Shares and for providing shareholder servicing and","page_number":40,"box":{"x":70,"y":310,"width":756,"height":12}},{"id":"926d90c0-16a8-40f8-8b22-69b88825c106","block_type":"box","text":"distribution-related activities and services for Investor C Shares.","page_number":40,"box":{"x":69,"y":326,"width":456,"height":9}},{"id":"3158cdfa-a439-4c8b-a997-b46ef9ab6a8d","block_type":"box","text":"Class Name","page_number":40,"box":{"x":69,"y":364,"width":55,"height":7}},{"id":"47d70841-efbb-4577-bd86-6e3ec063f2f6","block_type":"box","text":"Fees Paid","page_number":40,"box":{"x":845,"y":354,"width":46,"height":7}},{"id":"d3725553-b389-4436-9863-a91c2b7ac67e","block_type":"box","text":"to BRIL","page_number":40,"box":{"x":850,"y":364,"width":36,"height":7}},{"id":"3400e962-3e64-41b3-9242-32ba24f4ce42","block_type":"box","text":"Investor A Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":69,"y":382,"width":654,"height":7}},{"id":"01bcd084-ca0a-4140-94a0-fdccd413f91b","block_type":"box","text":"$955,385","page_number":40,"box":{"x":827,"y":382,"width":57,"height":9}},{"id":"5abdba52-395a-4165-8ca0-92e6ca34ddcf","block_type":"box","text":"Investor C Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":69,"y":396,"width":654,"height":7}},{"id":"0080174d-d22f-4aaf-9362-2cc0524d68b0","block_type":"box","text":"$156,730","page_number":40,"box":{"x":827,"y":395,"width":58,"height":9}},{"id":"e6fe2ca6-96fe-48ad-b0f4-c86dc6cc4869","block_type":"box","text":"See “Purchase of Shares” in Par t II of this SAI for more information on sales charges and other distribution","page_number":40,"box":{"x":102,"y":418,"width":766,"height":11}},{"id":"7c86f4b2-b922-431f-ae72-5082b3453a83","block_type":"box","text":"related expenses.","page_number":40,"box":{"x":69,"y":434,"width":126,"height":10}},{"id":"f46a24e3-2dc1-4cc6-8073-d68e705704c2","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":40,"box":{"x":68,"y":464,"width":318,"height":11}},{"id":"9826d709-999b-4081-bd8f-3499d84ae7b0","block_type":"box","text":"An illustration of the computation of the offering price for the Investor A Shares of the Fund based on the value","page_number":40,"box":{"x":101,"y":486,"width":791,"height":11}},{"id":"2a8d0d05-6de0-4a3a-9880-dbd0458b922c","block_type":"box","text":"of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":40,"box":{"x":69,"y":501,"width":687,"height":12}},{"id":"4facc0b7-b5b5-49bb-8ea9-520be16f0c2d","block_type":"box","text":"December 31, 2025, is set for th below.","page_number":40,"box":{"x":70,"y":516,"width":281,"height":11}},{"id":"3494e769-0581-44af-af58-4470fcf9fd88","block_type":"box","text":"Investor A Shares","page_number":40,"box":{"x":805,"y":545,"width":102,"height":7}},{"id":"df1a6add-9ac6-468e-b72b-45d9142c9aa2","block_type":"box","text":"Net Assets","page_number":40,"box":{"x":70,"y":563,"width":76,"height":8}},{"id":"9362de96-18a6-4519-831b-01c7d78ca406","block_type":"box","text":".............................................................................","page_number":40,"box":{"x":150,"y":570,"width":621,"height":1}},{"id":"144eafac-8527-4aa4-b94f-b106674cc5c4","block_type":"box","text":"$372,293,634","page_number":40,"box":{"x":803,"y":562,"width":106,"height":11}},{"id":"322b6c8e-536c-44a2-8635-f61288b19dc8","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":40,"box":{"x":70,"y":578,"width":245,"height":11}},{"id":"41b97043-2357-4135-bace-28662332fa41","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,","page_number":40,"box":{"x":321,"y":578,"width":524,"height":10}},{"id":"32df5d34-fb48-4c1e-8241-0b633fc94b81","block_type":"box","text":"954,026","page_number":40,"box":{"x":847,"y":578,"width":62,"height":10}},{"id":"893402ad-3a87-4585-bc68-f768860c0bf9","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":40,"box":{"x":70,"y":593,"width":571,"height":11}},{"id":"f870682a-a409-4583-bd99-a9776e6bca37","block_type":"box","text":"................","page_number":40,"box":{"x":647,"y":600,"width":124,"height":2}},{"id":"826ab570-f191-4921-9955-626f10358e18","block_type":"box","text":"$10.35","page_number":40,"box":{"x":857,"y":592,"width":52,"height":10}},{"id":"0435ed1c-f78c-4870-869e-4705b6526eb1","block_type":"box","text":"Sales Charge (4.00% of offering price; 4.17% of net asset value per share)","page_number":40,"box":{"x":69,"y":608,"width":534,"height":11}},{"id":"19de85df-5dd9-48a0-88f2-7dea72e61f14","block_type":"box","text":"1","page_number":40,"box":{"x":604,"y":608,"width":4,"height":5}},{"id":"c1ef7c7f-a5d5-4f6d-9299-b9a2783bc31e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $.43","page_number":40,"box":{"x":615,"y":607,"width":294,"height":11}},{"id":"775182b8-96fd-4152-a443-7e6dec90ce46","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":40,"box":{"x":69,"y":627,"width":702,"height":12}},{"id":"71d5b4e0-cab2-4fd1-b3cc-43e390c1ee48","block_type":"box","text":"$10.78","page_number":40,"box":{"x":857,"y":627,"width":52,"height":10}},{"id":"6d9e9e15-490e-4be9-9147-0842c0ba871a","block_type":"box","text":"1","page_number":40,"box":{"x":69,"y":660,"width":3,"height":3}},{"id":"53349320-8949-45f2-b42c-6c05a421a0b8","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":40,"box":{"x":94,"y":660,"width":541,"height":8}},{"id":"5cf125de-65e9-42fb-9dbd-95f0305def3b","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":40,"box":{"x":101,"y":680,"width":787,"height":12}},{"id":"f36e0415-34be-4a77-a629-50f4154ab7cb","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":40,"box":{"x":69,"y":695,"width":833,"height":12}},{"id":"9be1d53e-4756-4a96-bfa5-e02db5941104","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":40,"box":{"x":69,"y":710,"width":813,"height":12}},{"id":"0aa72e46-73dc-47c4-9552-fa39e2fd8f17","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":40,"box":{"x":69,"y":726,"width":377,"height":11}},{"id":"2ffab742-3a9c-426a-bfa6-cf6f8d70a37e","block_type":"box","text":"The Subsidiary is subject to the same valuation policies as the Fund as described in “Pricing of Shares” in Par t II","page_number":40,"box":{"x":101,"y":748,"width":807,"height":12}},{"id":"b307174a-2bb3-4e4d-bc1b-fa3a31f2329a","block_type":"box","text":"of this SAI. The Fund’s investment in the Subsidiary is valued based on the value of the Subsidiary’s por tfolio","page_number":40,"box":{"x":69,"y":763,"width":783,"height":12}},{"id":"19e87742-a8fa-4bac-81b5-ffc45cd853e5","block_type":"box","text":"investments. The Subsidiary prices its por tfolio investments pursuant to the same pricing and valuation","page_number":40,"box":{"x":70,"y":778,"width":738,"height":12}},{"id":"95639d0b-c74b-4ef8-829a-df278eb012f0","block_type":"box","text":"methodologies and procedures used by the Fund, which require, among other things, that each of the Subsidiary’s","page_number":40,"box":{"x":69,"y":794,"width":816,"height":11}},{"id":"672623ca-c420-409e-bd1f-77748a0eadbf","block_type":"box","text":"por tfolio investments be marked-to-market (that is, the value on the Subsidiary’s books changes) each business day","page_number":40,"box":{"x":70,"y":809,"width":830,"height":11}},{"id":"5c3e53ea-fad4-4974-9ba2-3d1e0f12d1a3","block_type":"box","text":"to reflect changes in the market value of the investment.","page_number":40,"box":{"x":68,"y":824,"width":404,"height":11}},{"id":"9b0848a8-92a4-4987-8ca4-d3e5ec5b9ff9","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":40,"box":{"x":68,"y":854,"width":302,"height":11}},{"id":"0c201a9c-66f8-41b7-bf80-b6c11f64e630","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":40,"box":{"x":102,"y":877,"width":609,"height":11}},{"id":"6894ff06-96a3-4b5a-ab7e-19576dc82630","block_type":"box","text":"I-24","page_number":40,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"fb3b4f9b-260f-4ec2-bc09-c1c5e4625d6a","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b5c4893-e00f-4704-bc67-fd2489b9256e","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates of the","page_number":41,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"ed832295-09b9-4af2-89f2-8d02f9682eab","block_type":"box","text":"Manager, is set for th in the following table:","page_number":41,"box":{"x":70,"y":60,"width":304,"height":11}},{"id":"e61bc546-29d8-4ab4-85f5-92073e23ad78","block_type":"box","text":"Aggregate Brokerage","page_number":41,"box":{"x":613,"y":88,"width":125,"height":9}},{"id":"ad28b61e-014b-4242-bf7a-f35c615dacfa","block_type":"box","text":"Commissions Paid","page_number":41,"box":{"x":623,"y":98,"width":106,"height":7}},{"id":"ce98f7c2-fa4a-410a-a328-e81bb3e1320f","block_type":"box","text":"Brokerage Commissions","page_number":41,"box":{"x":769,"y":88,"width":140,"height":9}},{"id":"0fe01a56-17f1-4b3b-8871-3520a0640826","block_type":"box","text":"Paid to Affiliates","page_number":41,"box":{"x":791,"y":98,"width":96,"height":7}},{"id":"4917d7d4-59fa-4dd5-8a5d-39ff0ba48ea5","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":116,"width":439,"height":10}},{"id":"db319ad1-0565-4404-95ec-9abfb63230d5","block_type":"box","text":".........","page_number":41,"box":{"x":515,"y":123,"width":67,"height":2}},{"id":"608cb573-c9c2-4cee-bd3e-e368c7a214c7","block_type":"box","text":"$711,930 $0","page_number":41,"box":{"x":640,"y":115,"width":208,"height":11}},{"id":"da8de36f-38e9-498e-a696-d496650aa203","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":131,"width":439,"height":10}},{"id":"73e47907-bd05-4803-a113-15d35d2d871e","block_type":"box","text":".........","page_number":41,"box":{"x":515,"y":138,"width":67,"height":2}},{"id":"74b8aff3-fe19-4b82-87a5-b45d1e59ae4e","block_type":"box","text":"$661,349 $0","page_number":41,"box":{"x":640,"y":130,"width":208,"height":11}},{"id":"8054d8f0-e49b-4f44-b157-29244f1c1e4f","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . .","page_number":41,"box":{"x":70,"y":146,"width":439,"height":11}},{"id":"b19847ef-7d50-4e03-ab19-1428bdfb0976","block_type":"box","text":".........","page_number":41,"box":{"x":515,"y":154,"width":67,"height":1}},{"id":"05f08d70-3831-49e8-ba8f-7c498148b49d","block_type":"box","text":"$959,854 $0","page_number":41,"box":{"x":640,"y":145,"width":208,"height":12}},{"id":"f9ffaee4-c15a-4a89-bd62-fa0dc7c5b53e","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":41,"box":{"x":101,"y":170,"width":770,"height":11}},{"id":"5e5a9e3b-47d6-4dd1-94b7-7c91eecdcb39","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":41,"box":{"x":69,"y":185,"width":814,"height":11}},{"id":"c90782da-c2ce-456d-a8ba-c9c13880d41f","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended December 31, 2025. The","page_number":41,"box":{"x":68,"y":200,"width":784,"height":11}},{"id":"125d23c5-f11d-43f9-bd59-47e8866212ad","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":41,"box":{"x":70,"y":215,"width":839,"height":12}},{"id":"447c9799-dead-49c5-8664-f9430dc59ec6","block_type":"box","text":"business with such brokers.","page_number":41,"box":{"x":69,"y":231,"width":198,"height":8}},{"id":"7e02b246-8c0c-4b52-8716-d9f1262ef1fa","block_type":"box","text":"Amount of Commissions Paid to","page_number":41,"box":{"x":331,"y":259,"width":187,"height":7}},{"id":"588b9dc6-7718-4ab4-8c11-968f946a2419","block_type":"box","text":"Brokers For Providing 28(e) Eligible Research Services","page_number":41,"box":{"x":265,"y":269,"width":320,"height":9}},{"id":"97232ccd-c4b7-48f1-9ef5-f6a7de0a6b90","block_type":"box","text":"Amount of Brokerage","page_number":41,"box":{"x":626,"y":259,"width":124,"height":9}},{"id":"cdc68c91-6a18-4834-ae78-2684fa641830","block_type":"box","text":"Transactions Involved","page_number":41,"box":{"x":625,"y":269,"width":126,"height":7}},{"id":"c9a968fe-0319-4d17-9d6a-33541ff48b63","block_type":"box","text":"$0 $0","page_number":41,"box":{"x":416,"y":286,"width":281,"height":10}},{"id":"39b8189a-9db1-459d-b516-f4c49482324b","block_type":"box","text":"As of December 31, 2025, the value of the Fund’s aggregate holdings of the securities of its regular brokers or","page_number":41,"box":{"x":101,"y":310,"width":794,"height":12}},{"id":"5f907b1e-feec-44eb-83a7-e6c2b9ac2e91","block_type":"box","text":"dealers (as defined in Rule 10b-1 under the Investment Company Act) or their parents or their parents, if any por tion","page_number":41,"box":{"x":69,"y":326,"width":830,"height":11}},{"id":"d02f31d8-33e6-4f1f-89d0-986802d3411c","block_type":"box","text":"of such holdings were purchased during the fiscal year ended December 31, 2025, is as follows:","page_number":41,"box":{"x":69,"y":341,"width":690,"height":11}},{"id":"cb91c63f-6ef9-4c8d-8c3d-5799901d4a53","block_type":"box","text":"Regular Broker/Dealer","page_number":41,"box":{"x":69,"y":379,"width":132,"height":9}},{"id":"f064d142-b480-4d10-9c02-7772ebf8be56","block_type":"box","text":"Debt (D)/Equity (E)","page_number":41,"box":{"x":650,"y":379,"width":114,"height":9}},{"id":"a98893df-ffdb-41b4-b4a4-19d093da1a7f","block_type":"box","text":"Aggregate Holdings","page_number":41,"box":{"x":794,"y":369,"width":115,"height":9}},{"id":"3ade987d-fdc5-4ca7-8f0f-3c850f31aba9","block_type":"box","text":"(000’s)","page_number":41,"box":{"x":831,"y":379,"width":42,"height":9}},{"id":"60cc6154-ed94-49f9-b53d-ed4fddf01ab5","block_type":"box","text":"Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":41,"box":{"x":70,"y":397,"width":642,"height":11}},{"id":"6e331865-ef79-4b40-9706-b0a97c935f2c","block_type":"box","text":"$73,706","page_number":41,"box":{"x":821,"y":396,"width":62,"height":11}},{"id":"fe099702-bb6b-4f05-8a69-ce015506d0d3","block_type":"box","text":"The Subsidiary follows the same brokerage practices as the Fund.","page_number":41,"box":{"x":101,"y":421,"width":470,"height":11}},{"id":"77af5648-c287-46d9-be2c-762ac9f768f8","block_type":"box","text":"Securities Lending","page_number":41,"box":{"x":68,"y":451,"width":135,"height":11}},{"id":"b5f93ae1-1315-4a9e-8801-0bebc6b4faa6","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":41,"box":{"x":101,"y":474,"width":807,"height":11}},{"id":"d94d5986-85fe-48f1-80ab-6f410705fdc2","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":41,"box":{"x":69,"y":489,"width":817,"height":11}},{"id":"ff4c805e-a12f-4432-8e25-ef5ee823368b","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":41,"box":{"x":69,"y":504,"width":813,"height":11}},{"id":"5554d34a-468d-40f7-aca2-e0a5a6172607","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":41,"box":{"x":70,"y":519,"width":838,"height":11}},{"id":"bf475123-3b43-4bd5-bb0d-6a68d14f06a9","block_type":"box","text":"overall supervision of Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”) BIM","page_number":41,"box":{"x":69,"y":534,"width":813,"height":11}},{"id":"38b0c15a-dc9b-4f3f-b8c4-98f5da730777","block_type":"box","text":"administers the lending program in accordance with guidelines approved by the Board.","page_number":41,"box":{"x":69,"y":549,"width":614,"height":11}},{"id":"2da1c4c7-ea8d-4ccc-8065-bf5c0f3783b7","block_type":"box","text":"To the extent the Fund engages in securities lending, the Fund retains a por tion of the securities lending income","page_number":41,"box":{"x":101,"y":572,"width":800,"height":11}},{"id":"e3f91e65-9393-43e2-9ad8-148aa1c00593","block_type":"box","text":"and remits the remaining por tion to BIM as compensation for its services as securities lending agent. Securities","page_number":41,"box":{"x":69,"y":587,"width":802,"height":11}},{"id":"3f452843-99a9-4281-beec-ce09416fc731","block_type":"box","text":"lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and","page_number":41,"box":{"x":70,"y":602,"width":774,"height":11}},{"id":"80d82a7e-adc6-491b-8efb-8c0d689eb749","block_type":"box","text":"excludes collateral investment fees as defined below), and any fees or other payments to and from borrowers of","page_number":41,"box":{"x":69,"y":617,"width":801,"height":11}},{"id":"36ea2a5a-1807-4119-bde8-b561b2f1980f","block_type":"box","text":"securities. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund","page_number":41,"box":{"x":69,"y":633,"width":837,"height":11}},{"id":"6dec63e1-4c14-42d4-917e-3a0a5c87aded","block_type":"box","text":"is responsible for fees in connection with the investment of cash collateral received for securities on loan in a money","page_number":41,"box":{"x":70,"y":647,"width":834,"height":12}},{"id":"57c7f132-296e-4a73-8e14-56cf64d3e618","block_type":"box","text":"market fund managed by BlackRock (the “collateral investment fees”); however, the security lending agent has","page_number":41,"box":{"x":69,"y":663,"width":787,"height":11}},{"id":"bb1ba2ab-837f-4c81-b384-ca998a72885d","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":678,"width":778,"height":11}},{"id":"7ae9b63b-cca8-46d7-a451-b1cc8e1e6aed","block_type":"box","text":"investment fees a Fund bears to an annual rate of 0.04%. Such money market fund shares will not be subject to a","page_number":41,"box":{"x":70,"y":693,"width":814,"height":11}},{"id":"bab2fa28-d8df-4013-9ba0-6cd2ab7bec5d","block_type":"box","text":"sales load, redemption fee, distribution fee or service fee.","page_number":41,"box":{"x":69,"y":708,"width":414,"height":11}},{"id":"4c4ec11c-6e2a-4189-b961-573b43b652f9","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":41,"box":{"x":101,"y":731,"width":776,"height":11}},{"id":"5427c531-2588-4009-8f1e-a1f230676abd","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":41,"box":{"x":69,"y":746,"width":831,"height":11}},{"id":"e8c39949-bc37-4cb6-aa53-25e078682cdb","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":41,"box":{"x":68,"y":761,"width":812,"height":11}},{"id":"f7c903a4-9695-4acb-87d1-6e8e0f883b63","block_type":"box","text":"determined that such fee would be, or would not be, respectively, in the best interest of the money market fund.","page_number":41,"box":{"x":69,"y":776,"width":799,"height":11}},{"id":"e19c9a58-be50-4db8-abcc-fb8aa3c1bb53","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":41,"box":{"x":68,"y":791,"width":835,"height":11}},{"id":"133d45d9-a326-4eb2-b5c9-191df667190f","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":41,"box":{"x":69,"y":806,"width":818,"height":11}},{"id":"ecdb8cfa-7731-447a-ab21-cc874f6beb03","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":41,"box":{"x":68,"y":821,"width":789,"height":11}},{"id":"9c398475-4611-4d7d-b0fb-757d6138b5e2","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":41,"box":{"x":69,"y":836,"width":829,"height":12}},{"id":"e1e19c8e-2cdb-4937-9468-0ebebe6e19f1","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":41,"box":{"x":69,"y":852,"width":839,"height":11}},{"id":"a4eba6f5-ec66-4a0d-8df4-3ea2bcdb6adb","block_type":"box","text":"mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each","page_number":41,"box":{"x":69,"y":867,"width":802,"height":11}},{"id":"2312546f-3ee7-45e1-aa3f-d14cb8edb406","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":41,"box":{"x":70,"y":882,"width":830,"height":11}},{"id":"d552c71f-4df6-4f62-949b-664f68c6b9a9","block_type":"box","text":"of shares redeemed on that day. The imposition of any such discretionary or mandatory liquidity fee would reduce the","page_number":41,"box":{"x":69,"y":897,"width":838,"height":11}},{"id":"c186a1fe-ee82-4238-b85e-3da57521240a","block_type":"box","text":"Fund’s returns on securities lending.","page_number":41,"box":{"x":70,"y":912,"width":258,"height":11}},{"id":"d73abce2-b51e-4406-99c3-54b42ec7a32b","block_type":"box","text":"I-25","page_number":41,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5333a706-bea8-4bc4-bb11-46bb69e3365c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71e3e4f4-b738-4e50-81d7-80426b9bf809","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":42,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"50932e60-5cb8-4b89-a3c8-9ba6bdf68c70","block_type":"box","text":"determination of the Fund’s asset class category (fixed income, domestic equity, international equity or fund of","page_number":42,"box":{"x":69,"y":60,"width":792,"height":11}},{"id":"2525cc36-4a1d-436c-95c3-7d06df8cec11","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":42,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"548dabd5-aba4-48d4-8304-568ec432b972","block_type":"box","text":"Trust and BIM.","page_number":42,"box":{"x":68,"y":90,"width":103,"height":9}},{"id":"32dad45b-4823-4c0f-8787-691532d57c94","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if the Fund were to engage in securities lending, the","page_number":42,"box":{"x":102,"y":113,"width":774,"height":11}},{"id":"64363518-0341-4f5f-83b2-f327a55bd242","block_type":"box","text":"Fund retains 81% of securities lending income (which excludes collateral investment fees); and (ii) this amount can","page_number":42,"box":{"x":70,"y":128,"width":818,"height":11}},{"id":"3d1b45e1-798a-4ff4-a503-cab2f1ad4547","block_type":"box","text":"never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":42,"box":{"x":69,"y":143,"width":683,"height":11}},{"id":"123da938-6f55-4566-a370-25fe399c1f8d","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":42,"box":{"x":102,"y":166,"width":753,"height":11}},{"id":"4fe3c076-defa-4080-a519-33e0ff8b9906","block_type":"box","text":"earned across the BlackRock Fixed-Income Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":42,"box":{"x":69,"y":181,"width":791,"height":11}},{"id":"333d2639-5806-48f9-baaa-2b258fdcee52","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":42,"box":{"x":70,"y":196,"width":817,"height":11}},{"id":"e73710b7-1c81-4f2e-8955-f31e5905778a","block_type":"box","text":"lending income as follows: (i) if the Fund were to engage in securities lending, 84% of securities lending income","page_number":42,"box":{"x":70,"y":211,"width":794,"height":11}},{"id":"51b558c8-336f-48ad-b024-2e96ea7bfa86","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":42,"box":{"x":69,"y":226,"width":832,"height":11}},{"id":"20ff5011-22d8-465f-970e-397d2be7cbfc","block_type":"box","text":"lending income plus collateral investment fees.","page_number":42,"box":{"x":70,"y":241,"width":334,"height":11}},{"id":"933ec43a-2fa2-4d64-8748-14e34dbcd95f","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to a different securities lending fee arrangement.","page_number":42,"box":{"x":102,"y":264,"width":690,"height":11}},{"id":"1a5ecf96-72e5-44c4-85bf-978e822cd95c","block_type":"box","text":"The Fund had no income and fees/compensation related to its securities lending activities during its most recent","page_number":42,"box":{"x":101,"y":286,"width":807,"height":12}},{"id":"5c64e1ac-97fb-4789-8211-11d9ed9c2877","block_type":"box","text":"fiscal year ended December 31, 2025.","page_number":42,"box":{"x":68,"y":302,"width":276,"height":11}},{"id":"078a640d-56a4-40be-bd43-e16b8433ad55","block_type":"box","text":"VIII. Additional Information","page_number":42,"box":{"x":68,"y":332,"width":195,"height":9}},{"id":"599ad632-0737-43a6-943e-b3ff3dde706c","block_type":"box","text":"Counsel.","page_number":42,"box":{"x":101,"y":355,"width":62,"height":9}},{"id":"17f1b77c-ec6e-4050-bb69-d144d0e8536b","block_type":"box","text":"Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019 serves as the Fund’s","page_number":42,"box":{"x":169,"y":355,"width":711,"height":11}},{"id":"1b647262-9196-45ff-9c1d-e188e4140e9b","block_type":"box","text":"counsel.","page_number":42,"box":{"x":69,"y":370,"width":58,"height":9}},{"id":"aefaf131-27cb-4e0c-9e7c-b9017449d289","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":42,"box":{"x":102,"y":392,"width":352,"height":11}},{"id":"129db608-2172-4fd4-b9b0-f319993e7091","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":42,"box":{"x":461,"y":392,"width":412,"height":11}},{"id":"7c0547a6-96a8-4565-a6cb-10ff1cb2290a","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":42,"box":{"x":69,"y":407,"width":772,"height":12}},{"id":"e9de7726-2ed2-4258-96da-d658a705054b","block_type":"box","text":"The Trust","page_number":42,"box":{"x":68,"y":438,"width":69,"height":9}},{"id":"ab5b9e9d-a570-4aec-be1a-9a0ba81fb1e8","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on April 19, 2018, and is registered under the","page_number":42,"box":{"x":101,"y":460,"width":765,"height":12}},{"id":"95014b50-3047-4e25-9669-3dbf5f4038b6","block_type":"box","text":"Investment Company Act as an open-end management investment company. The Trust and its series were organized","page_number":42,"box":{"x":70,"y":476,"width":828,"height":11}},{"id":"96e5fa26-5165-43aa-9dc9-58fa388d6db4","block_type":"box","text":"for the purpose of acquiring the assets of corresponding series of BlackRock Funds","page_number":42,"box":{"x":68,"y":491,"width":595,"height":11}},{"id":"647fe949-454f-4576-80bd-c569c5fc5bfc","block_type":"box","text":"SM","page_number":42,"box":{"x":664,"y":491,"width":11,"height":4}},{"id":"9182d787-9d2f-4c6c-ae5b-3780322558ab","block_type":"box","text":"in reorganizations that occurred","page_number":42,"box":{"x":682,"y":491,"width":225,"height":11}},{"id":"36eadb9a-66e5-458e-ae6f-ba12962a68bc","block_type":"box","text":"on September 17, 2018.","page_number":42,"box":{"x":69,"y":506,"width":176,"height":11}},{"id":"dcddcb85-974b-4164-bc35-553f98353644","block_type":"box","text":"On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Alternative","page_number":42,"box":{"x":102,"y":528,"width":791,"height":12}},{"id":"6a6453ae-dc1d-4462-ab0b-594317da433c","block_type":"box","text":"Capital Strategies Fund (the “Predecessor Fund”), a series of BlackRock Funds","page_number":42,"box":{"x":69,"y":543,"width":562,"height":12}},{"id":"7d09c4ff-1dd0-4113-8109-f9b9490a2065","block_type":"box","text":"SM","page_number":42,"box":{"x":632,"y":544,"width":11,"height":4}},{"id":"f0f94827-226b-4395-ad4d-c05e6face11e","block_type":"box","text":"(the “Predecessor Trust”), through a","page_number":42,"box":{"x":649,"y":544,"width":258,"height":11}},{"id":"0811466b-a7fb-4a74-9f8a-7f2a739dd1da","block_type":"box","text":"tax-free reorganization (the “Reorganization”). The Predecessor Fund is the accounting survivor of the Reorganization,","page_number":42,"box":{"x":68,"y":559,"width":838,"height":11}},{"id":"b179b698-cf32-4092-a224-44a530db53f9","block_type":"box","text":"which means the Fund adopted the per formance and financial history of the Predecessor Fund as of the date of the","page_number":42,"box":{"x":68,"y":574,"width":826,"height":11}},{"id":"cc262ddb-a599-4faf-a857-c33847cbb498","block_type":"box","text":"Reorganization. The Reorganization resulted in the Predecessor Fund effectively becoming a series of the Trust. The","page_number":42,"box":{"x":70,"y":589,"width":826,"height":11}},{"id":"b7d53f6b-fe13-4ac4-99ef-63ea64ed9b9e","block_type":"box","text":"Fund had the same investment objective, strategies and policies, por tfolio management team, service providers and","page_number":42,"box":{"x":70,"y":604,"width":829,"height":11}},{"id":"72547346-8db8-4203-8461-4a150c851a26","block_type":"box","text":"contractual arrangements, including the same contractual fees and expenses, as those of the Predecessor Fund as","page_number":42,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"4e181d91-19ff-443d-bbda-e97acbd1c38f","block_type":"box","text":"of the date of the Reorganization. The Trust is authorized to issue an unlimited number of shares of beneficial","page_number":42,"box":{"x":69,"y":634,"width":783,"height":12}},{"id":"906d4c84-56a1-4473-99dd-13044ffa045c","block_type":"box","text":"interest with a par value of $0.001 per share, which may be divided into different series and classes.","page_number":42,"box":{"x":70,"y":649,"width":722,"height":12}},{"id":"bc556175-b8d6-4665-8546-53b3adc8af92","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":42,"box":{"x":102,"y":672,"width":734,"height":11}},{"id":"5155ee5e-8791-4f18-b184-1f311f06da9b","block_type":"box","text":"personally liable as par tners for the obligations of the trust. However, the Trust’s Declaration of Trust provides that","page_number":42,"box":{"x":70,"y":687,"width":819,"height":11}},{"id":"45cd0ad4-cd9c-47bd-bed8-409082a9b8a9","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":42,"box":{"x":69,"y":702,"width":814,"height":11}},{"id":"6ad0d020-dd59-4773-9cd9-4acb489716ea","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":42,"box":{"x":69,"y":717,"width":794,"height":12}},{"id":"bd1bfe96-bfa6-4fdc-9a8d-adc598d377c1","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":42,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"012ea5ad-1b22-4955-ba1c-23676c173780","block_type":"box","text":"provides for indemnification out of the Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":42,"box":{"x":70,"y":748,"width":832,"height":11}},{"id":"8bc60d3f-3334-4918-a962-06f168157608","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":42,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"070e71e5-9ba9-4420-b9a9-c33f915ff96b","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":42,"box":{"x":68,"y":778,"width":807,"height":11}},{"id":"522aa596-44f2-45f8-a668-271817465bcc","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":42,"box":{"x":69,"y":793,"width":719,"height":11}},{"id":"a2452b55-d62b-4a4e-9736-931c21023d05","block_type":"box","text":"The Declaration of Trust fur ther provides that all persons having any claim against the Trustees or Trust shall","page_number":42,"box":{"x":101,"y":816,"width":777,"height":11}},{"id":"910a34dd-b206-410e-9c14-e79d803f7183","block_type":"box","text":"look solely to the Trust proper ty for payment; that no Trustee of the Trust shall be personally liable for or on account","page_number":42,"box":{"x":70,"y":831,"width":828,"height":11}},{"id":"24b63bab-468f-41b3-b349-6cc95648057f","block_type":"box","text":"of any contract, debt, tor t, claim, damage, judgment or decree arising out of or connected with the administration or","page_number":42,"box":{"x":69,"y":846,"width":827,"height":11}},{"id":"9292b0e6-8dca-4dfb-82e3-8c720bc3e87e","block_type":"box","text":"preservation of the Trust proper ty or the conduct of any business of the Trust; and that no Trustee shall be","page_number":42,"box":{"x":70,"y":861,"width":762,"height":11}},{"id":"be4c18f1-f1b3-47b9-a4d4-491ea1fbbdb6","block_type":"box","text":"personally liable to any person for any action or failure to act except by reason of such Trustee’s own bad faith, willful","page_number":42,"box":{"x":70,"y":876,"width":836,"height":11}},{"id":"76a04111-14fc-43b4-b7c7-981546cf30c9","block_type":"box","text":"misfeasance, gross negligence or reckless disregard of his duties as a Trustee.","page_number":42,"box":{"x":69,"y":891,"width":567,"height":12}},{"id":"e7d1ba8b-6c65-4a5d-acd9-a9677739c528","block_type":"box","text":"I-26","page_number":42,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"18fb5bbc-d109-4c57-8663-e5a5973c1d40","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0d7806a-8f97-4e84-8a46-d6a23ea5afa0","block_type":"box","text":"With the exception stated, the Declaration of Trust provides that a Trustee is entitled to be indemnified against","page_number":43,"box":{"x":101,"y":45,"width":792,"height":11}},{"id":"4f7e121a-8ef3-4cfe-aa32-4d94fff35791","block_type":"box","text":"all liabilities and expenses reasonably incurred by such Trustee in connection with the defense or disposition of any","page_number":43,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c8aab2ea-53d8-49ed-805b-1141f1911e90","block_type":"box","text":"proceeding in which he may be involved or with which he may be threatened by reason of his being or having been a","page_number":43,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"c67b062c-3e6e-4fdc-a7c1-e410dcb3852d","block_type":"box","text":"Trustee, and that the Trust will indemnify officers, representatives and employees of the Trust to the same extent","page_number":43,"box":{"x":68,"y":90,"width":811,"height":11}},{"id":"8bee8179-e387-4d38-a85d-802c23fd837a","block_type":"box","text":"that 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All investments are generally","page_number":45,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"85422a38-fc6e-49cd-b7fc-05c2106bbff9","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":45,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"e81bb099-0cb5-4e8c-a8b5-59534c8781a9","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":45,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"6db256a0-3cc5-4654-83a9-88f634e2a2e2","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":45,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"c12a3a67-0b32-4a32-9110-a8ef1638f923","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":45,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"30b50666-3ce7-4716-99ae-4a16f3fa1d41","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":45,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"c11ebedc-4afd-4487-bd4a-3980a697c7dd","block_type":"box","text":"par ticular Fund.","page_number":45,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"25328da3-dc25-4604-90d6-fa84f486946d","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":45,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"0f458ccf-17b3-4313-afcb-5e14d57eb2c8","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":45,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"cbc64619-f7e1-400f-abe8-7c9413892933","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":45,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"9f9cd307-83f2-4852-8c9c-88d141d890bb","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":45,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"d410faf5-bac1-4655-9257-5b4b73dfcdc5","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":45,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"08bba385-3267-465a-8feb-6df1f433d3ac","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":45,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"1cbdb07a-abb4-4629-86c5-1c3e8ce28167","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":45,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"99f79b7a-70fc-4424-b0dc-44e29d0b6549","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":45,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"3de7741b-e036-4d8e-aa0b-4fa994a1ba7c","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":45,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"4c5454e7-8bfc-42d5-820a-ff307cf3e4b2","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":45,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"688bc129-5614-4de7-8ddb-c8beb0e8ab1c","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":45,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"d4e64b9f-37ac-432c-8e69-78a07cf417fb","block_type":"box","text":"Asset-Backed Securities.","page_number":45,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"0ef3690a-15cd-4a07-a2ff-e5f6a8c238d1","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":45,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"0d766819-64ff-45f5-948d-a0f2b7af40a8","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":45,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"2fd6d4bb-88b5-4374-9f4c-46a49201aadb","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":45,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"12d49820-e2b0-4346-bda6-9fc77105ec37","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":45,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"45102cc3-ab00-4381-b8dd-b3c5a69feb71","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":45,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"984092d5-8b2a-49ab-837f-d16a9246479f","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":45,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"7d4da133-2914-4894-b27f-35e7df9fa243","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":45,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"dd06744f-504e-4774-8302-4767cc126bcd","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":45,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"0536f579-fc4c-4e11-ae9a-f4f456164f51","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":45,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"de77cd6a-f5eb-49f1-a26b-cbcf5c51d007","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":45,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"022903e1-654b-4f61-8fd2-9f5188bf44aa","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":45,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"be9fd8ca-907b-490c-a6f2-4a60455d3a35","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":45,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"7de62e65-8d97-450e-a4b7-562072932b88","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":45,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"3e89d429-f929-4f46-95fe-323acabda149","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":45,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"5d401ebf-3176-43a3-a96b-76c1f4cfcfba","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":45,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"a497985a-d51d-4166-a6e6-928711d083d1","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":45,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"731d3b4b-0ae8-41c8-9731-38089cabae77","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":45,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"4b14d5a8-148b-4185-aa40-03fe77b2e6a3","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":45,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"d3f4ee36-66a4-47b9-b031-23b04aa9ce25","block_type":"box","text":"II-1","page_number":45,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"97dc5ef7-4252-48d3-bc10-7f931544ef7e","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73c938d5-9951-472a-ae16-0b437e9cc4f6","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":46,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"9d4e1442-a4fa-44cd-8363-cf8dc896df8d","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":46,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"6d43253e-c356-4a09-89ba-6bb73b2b4ab7","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":46,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"e20fdf6d-6546-4975-9773-42bf4f3fc49a","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":46,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"a847b08b-cb42-404b-a74c-9aba2e0ca4af","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":46,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"d0a3b183-f712-42f5-847d-a481ce4b1803","block_type":"box","text":"Asset-Based Securities.","page_number":46,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"5ddf500a-b932-447f-aeea-0aa75d86798f","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":46,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"6ccebc82-1dbd-4417-8145-6ac353927b65","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"0c8fa0ca-e655-4a9f-b2cf-bd4a357cdf55","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":46,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"0f9ed420-82fd-49ae-a65f-b0488bf7d0f6","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":46,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"403b6656-db07-4112-a7fb-db4d36cd5961","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":46,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"e6e035c6-de44-4d5f-8e8e-0317a4baf72b","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":46,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"92096f25-2fe5-4d50-b092-6cb80689de13","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":46,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"02f3b774-bc39-4c0b-a8ff-c9269efd26b5","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":46,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"7152a413-642e-494a-9778-ebfb27d17ef1","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":46,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"00f02f91-86c0-49af-b018-5ca4a3bffe1a","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":46,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"dc1a5858-86b7-47ef-938b-9b737887e9c2","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":46,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"5b3fc2e8-76d7-43ef-bcb4-d0419f31547c","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":46,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"33baabd5-dee0-41fc-a819-6d40bd6cc93c","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":46,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"845e05ec-57b8-44e5-aa96-4169d748ecab","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":46,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"78a630c5-86c0-45dd-9c6a-227921772d52","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":46,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"beedef76-73b5-4231-ac96-6bdfb5c75137","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":46,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"1c66d82f-ce16-4921-bfb4-5fe922313d5a","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":46,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"7221cafd-851a-49da-ae43-7e86e070c712","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":46,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"d5d184cd-a8fc-46ba-9623-8a317c28b6b2","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":46,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"5d049817-6eca-437c-9c16-445fdb4428a5","block_type":"box","text":"appreciation in the underlying asset.","page_number":46,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"97893bcc-c6f0-4067-a98d-1eaad971dea5","block_type":"box","text":"Precious Metal-Related Securities.","page_number":46,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"082249a0-adaa-4a26-8ed7-41572b435b80","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":46,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"e39807d0-f5e7-433e-8131-1a816a451809","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":46,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"77a086b0-7247-4967-aa9c-f6443ede3c0a","block_type":"box","text":"e.g.","page_number":46,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"b79f2ec4-f99e-47bf-ab90-cd0a00e3e7ee","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":46,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"99646e74-b7ae-43af-a7a4-5ea1ad269915","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":46,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"98e4b822-4c8f-4d88-a6ec-5b1dee78df93","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":46,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"495f4d45-4d3b-4fbc-8943-9bce35699d34","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":46,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"991e984a-3330-41f4-b124-d02a6365967e","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":46,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"4165464a-456a-49b3-8ff4-1c0ea1e496c4","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":46,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"4dd2737c-ab3e-4230-ae04-9851fdda2b02","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":46,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"1c74da22-9a6e-48d2-93a6-58f1d40fd5df","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":46,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"5f53c577-05cc-4fe6-92e3-3e2e28593e05","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":46,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"ee7af795-992e-4ecd-b250-c5e14de50315","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":46,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"cc072324-8768-48a2-86c4-9968395f20b5","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":46,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"7ba5811b-3afd-41d4-a6dd-29e9ddb45da3","block_type":"box","text":"South African gold production.","page_number":46,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"cfd77def-2fea-4a4a-a74c-61403fc07a62","block_type":"box","text":"Borrowing and Leverage.","page_number":46,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"f7ab2cc2-131d-408f-b176-dadc70f0ca5f","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":46,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"5fdcd97d-ac56-46e3-9910-a826b5c8247a","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":46,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"1a6401a1-57ee-4273-bb59-7c283a650d8d","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":46,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"0f912433-835a-4891-afc9-a222d17d3556","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":46,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"3fa94ddb-4c7b-4367-9432-3d03f4a0aed4","block_type":"box","text":"other securities transactions.","page_number":46,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"22f1b577-de83-4a4c-91ab-b4ee2991497f","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":46,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"122a6e0e-15b1-48e4-8d4b-5a18481f2af0","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":46,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"26a3e63c-cc22-49dd-816a-c24bc86dcc2e","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":46,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"85a2f549-6bff-4dc3-8b87-0334e34f436d","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":46,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"b97fa74f-408c-4abc-aeaa-fe1048233642","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":46,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"d717f106-933a-488c-89ea-d99aa90b122d","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":46,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"3e0e652e-fd27-4678-9348-d47abe614f24","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":46,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"e2032195-e492-49e7-9fb1-8d786d0f5478","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":46,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"a8e0ad08-4ff7-4f7c-a605-0910067bfb8a","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":46,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"0effe57e-5c58-45be-89ec-8d019402af9e","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":46,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"c9ea02c0-9ec6-4a45-b8cc-4593feee8ee8","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":46,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"fc855669-cb19-48d8-8325-afe07ec26ff6","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":46,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"d10d3587-53db-4004-a43b-bd055ede0ff2","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":46,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"45d2c463-ec52-484a-8baf-9040baf45f62","block_type":"box","text":"II-2","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8d7875c8-b834-4a8f-85c2-d7f973075107","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bb746b4a-12c8-45ef-954c-c0cf0c2eebe1","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":47,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"9d275998-76dd-43e8-aa05-0010fd2e176e","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":47,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"843533b4-bf49-4e8f-b634-fbdccf8c9667","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":47,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"0a89d37b-7d25-4d1e-8f92-6b03d3ba7d5a","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":47,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"4ac97579-4e67-448f-8343-700c0bb5b3d2","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":47,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"a74cefcc-83dc-46bc-b3bd-26c4289b7a02","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":47,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"bc940bf6-3aac-4c6e-924e-b386ca79953f","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":47,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"0c700d06-eb4d-4655-9cb8-d91824eb71a9","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":47,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"e169ec85-6a0c-4daf-a2da-d3d0668769df","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":47,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"d7d3c68f-b29b-4206-8da5-3a5a7a73865f","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":47,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"b7d02199-3a86-4956-af7a-7957e0d644a5","block_type":"box","text":"Cash Management.","page_number":47,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"ceb96d75-73e4-493b-8100-d1a34cdcb2a8","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":47,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"bdbfff9d-124a-4833-a87c-020c4461fd0d","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"6b8fc299-cf32-4e09-b288-b38b53127271","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":47,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"20637413-f5df-41b8-8b5a-6c8eae8255b8","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":47,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"23a6a787-1670-4c62-9498-ce7f2b0fb004","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":47,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"ffe535bc-de23-45a2-a48d-6f66cb8b3e7b","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":47,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"797b15e7-5665-429e-bc9d-01c2f4abdb2a","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":47,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a2689ba7-5574-4111-92d7-e1c5c6de5877","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":47,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"4c3c7e98-3d3f-4ad2-a12d-10ad72fc1fae","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":47,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"e79d5a92-088d-43b7-a731-b90b9b5f9ee7","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":47,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"bd66938b-da97-4852-90ea-f678f900b068","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":47,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"e2f63dcb-442e-4d73-8873-0bd640885104","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":47,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"8828b998-3762-4b5e-86dd-ac429518d074","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":47,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"09a653cf-d178-4cbe-b372-a4041cc2e578","block_type":"box","text":"Collateralized Debt Obligations.","page_number":47,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"8189a004-9b4a-45b2-bde8-8a4179b228e6","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":47,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"625e45df-f8ea-4441-8f62-f726d71f3c1a","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":47,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"e5186ea0-5ca8-4c5a-9d85-e5ef06b73299","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":47,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"f9557a73-1ad3-4dc4-b54a-cc53a02faeb5","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":47,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"a77780fb-2ea0-4b04-8620-58a824a4ae0d","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":47,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"49e5b807-64f3-4ead-a04c-621276c02df5","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":47,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"7401d75e-64c7-4f6b-8f18-8d4a197ddf7b","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":47,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"700c0057-9d12-43a9-bad6-a969a43a1f12","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":47,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"663791d1-cbb2-40bd-a60d-ecae1845e16d","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":47,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"9c8077ba-c6a8-4dc2-9deb-81fc33ea115d","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":47,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"f646ea0b-4e3b-4898-8d87-5c37e3416a9e","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":47,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"cb571771-65f0-412f-ac82-890ecba2c511","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":47,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"d655c4b8-ec86-4dc0-9a47-782110e95b41","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":47,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"44de7652-a760-4e53-83c8-54c67a2bddad","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":47,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"32e18e15-9faa-46d8-b1b4-2e1cf87553a1","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":47,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"6d32cf46-2594-4551-8a3f-e3a8ec0a0c1f","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":47,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"c1308eac-a96e-4076-8d50-cd7cba31278a","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":47,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"b4d9fa9a-1dd0-4df8-a535-01e302e85535","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":47,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"472d3a77-fbe0-44de-9562-b55d146e5981","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":47,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"7848fc96-9e86-479b-b01e-92ed04fa2fad","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":47,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"c7ac29cd-a69b-4f8d-b1ac-540831e1c0c0","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":47,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"eb315771-17f9-4eff-8efe-2af8bd28b179","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":47,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"7b95758c-1910-4ebf-b4c1-7353cc4d7f13","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":47,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"a6924f60-d189-4dcf-9d91-683378131e6e","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":47,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"defbb965-59b5-4c11-af83-81b437bdd75f","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":47,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"317c1692-9ef7-4869-ae82-9c4a46b955d2","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":47,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"e26ffe04-816b-421d-97c7-22121c507799","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":47,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"7ad1fbb1-ba0d-482e-bfe6-0399c8850c3e","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":47,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"4b592fc7-84bb-401d-a739-85a4fb3a7370","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":47,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"97a75e12-2509-4dd9-b080-365d4436147a","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":47,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"0b39a871-19de-40b6-9c70-2559b6df3506","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":47,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"2d1b68d7-c746-45c0-946c-88441186a440","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":47,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"4d3925b1-2134-461c-ba38-0b232d6a3c97","block_type":"box","text":"II-3","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"1715c844-57fc-4ad2-9c25-7f5561f9a360","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cb00c219-533d-429c-b39c-33189e51897e","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":48,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"6db9a167-30fb-4a36-8a78-1519c9ecca9f","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":48,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"8ca6d987-400c-4eef-8187-db975bd0b4a7","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":48,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"b425747b-cedf-4a57-a00d-c1681a689e7a","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":48,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"df4390ea-18bd-4146-85a7-5e6ed25c2046","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":48,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"39834499-f61d-4aae-a9e4-c6e60536283d","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":48,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"b6528486-1b33-4f53-ad55-1845b7bd7bd2","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":48,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"f6cf1706-7cc9-4815-b75e-307e01a641e9","block_type":"box","text":"Commercial Paper.","page_number":48,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"25229c26-bf4a-423e-b91c-da3b160ba9ac","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":48,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"de883510-f4f7-49db-bbd6-0c8c87ff8fe7","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":48,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"e8a2bdc0-e6ac-4ab0-b546-4b015864cd72","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":48,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"db7cd0d5-4539-42fa-add1-773e30b81b9c","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":48,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"88591a49-8ad3-4af5-8bf1-2a4e5dbdff6f","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":48,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"229af679-0996-4019-934e-a28c438cbecb","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":48,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"e112a357-91ee-42b9-8f4e-ee89e223612b","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":48,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"34b14bfe-a0b2-4ed6-a9c8-b0bea9eefe94","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":48,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"09014a6d-2b9e-4e7a-8f58-d35167b4fdc7","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":48,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"e51dd1d1-ab11-4d54-8813-1ccf8c6078a6","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":48,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"dcf28739-c24d-4ce5-9524-dd6079d65b21","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":48,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"071085e4-3830-414f-9192-c9bbac10946d","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":48,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"42813dda-39a5-4652-86ce-ff55673ec50e","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":48,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"169fbc8b-ea78-4679-8566-b9fce1c6b32d","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":48,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"e88d7436-a8a6-4362-9713-993c6e6988ba","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":48,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"5b6fd5ce-5f27-4f0f-a687-e63f81c2cf42","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":48,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"2fd0c790-66ba-4352-91d8-08051bc006e6","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":48,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"60f31aee-a174-4a75-a946-91f096ab5afb","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":48,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"e4d945fa-9e9f-4dc1-9ae7-d193d8e0dbb9","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":48,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"7256274a-fc6a-495e-bc90-68116545c04d","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":48,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"e3ebcfc8-57f6-4b23-bcd2-ac6a8154d53b","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":48,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"b4008083-5e76-4af6-8830-3899d46d4300","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":48,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"06519951-2702-449d-8fc8-d50dde2cbc3d","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":48,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"e3e717d5-3eee-4159-a055-f26b3eb8d485","block_type":"box","text":"variable.","page_number":48,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"196370d6-da81-46ca-919e-b097dfc63999","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":48,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"088d06a6-a4f9-4bd7-b3fa-21a94e044678","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":48,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"1b194aee-6745-4b26-9dbd-92a58c69bd1e","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":48,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"156b979c-529c-497d-bee0-bd0a4e500462","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":48,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"14ca484a-c30a-4d48-ba8a-2f2bc548dbfe","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":48,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"e2312931-26e5-4195-879e-72b5e10f334b","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":48,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"53062f92-0f42-4205-a147-40c4ae768518","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":48,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"9b388fb2-4e56-4c0c-b9f6-b5411905b28a","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":48,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"7214bdcf-8be2-4ac1-82dd-84460427eb1d","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":48,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"576b4aa0-891c-41ec-9658-0eece1a8e3de","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":48,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"25ae8776-9ea3-4fe2-bed1-d1467bd4afcc","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":48,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"99d297f5-6efb-4257-8a65-e3b4af4d8139","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":48,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"940dacb0-0f34-4dac-8781-17754dc2ea1a","block_type":"box","text":"correlation with stocks and bonds.","page_number":48,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"96f9ef9c-efa1-48c7-b07e-68017a1d9dcb","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":48,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"c7d3a298-01e0-47c8-a198-e72c3ad53778","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":48,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"d8a94a68-030e-4c4c-8ade-594071d02d74","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":48,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"afc47e9b-59c1-492d-98b9-2b87ca5dc215","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":48,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"59ae38d2-df73-4c2a-8e46-6b27c954e8b8","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":48,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"0cdef599-b910-45db-bff0-e5edd5a1782b","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":48,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"d2ec96c6-e76f-4bff-add8-70c3adb9da12","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":48,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"0e97d477-d2f9-49c9-b7ee-4f2ef24a4dd8","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":48,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"38ea9045-a758-42ee-a4b4-ada74b99196a","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":48,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"c1128c7d-4642-455b-97be-2e96e6ff1ae9","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":48,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"d82e4003-dffb-4a50-8700-1af970a90c7e","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":48,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"9956052c-6382-4f15-921c-759e86068b53","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":48,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"3a9831ba-b315-4bc2-a33f-57f2e505318a","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":48,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"77d192b1-a676-4fbc-8381-35577ed4692e","block_type":"box","text":"II-4","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"4d6ebc4a-dd6e-4eb9-87db-4c1ed8967613","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9a8d8212-7c6e-4fb6-9053-5ad9eeeac505","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":49,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"222402e2-ea72-4aef-bf08-c80c8839061f","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":49,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"f60bb764-cf6c-4ab4-a569-ef1989e7b8f4","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":49,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"31e5d4ba-8024-465c-a65f-9c826346aba0","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":49,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"94fcb955-998b-476a-8451-d088f8df6956","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":49,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"b1267ce0-6293-4a59-b3a8-15c50133231d","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":49,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"90b7cc30-1c1f-4e44-92f2-ca27cbc40eea","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":49,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"048bc5ab-748a-4ceb-853c-1cb43985d6ec","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":49,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"fb0f148a-c07a-431c-a169-7e82684cf1a3","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":49,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"5995861e-d3b6-4973-bed9-63655ed60e05","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":49,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"7a75e0ee-cb13-4c74-b389-9e0b6384f946","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":49,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"5cb9d14c-842e-44b2-a67c-ce0a85cab857","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":49,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"bf6ff9f7-be6c-43bf-96b0-0fc4bc019f6d","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":49,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"b91cd33b-1369-45b6-92a1-3765522efdae","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":49,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"a45e83c8-d2ab-4750-a23a-818bf94c09f4","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":49,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"2cb3612e-b461-4670-a901-869067c15c1b","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":49,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"aee6794e-9cb3-4ea5-b013-c1610a80b5a7","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":49,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"3dd3c780-8ca7-4a49-9aed-9366faea7b72","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":49,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"5d4fec66-560a-4ed7-a8a2-8b4c191a3fdf","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":49,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"9fd37786-9148-435d-9646-7bd3c9bf8907","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":49,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"d9cc17f8-2408-4fa4-a930-97d4acc0ee89","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":49,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"022e056e-5a74-49f8-a489-81948e7ec9fe","block_type":"box","text":"the Manager believes are relevant.","page_number":49,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"90e693c4-9250-4391-94eb-81e059330e65","block_type":"box","text":"Limitations on Leverage.","page_number":49,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"a3ef87bc-470b-48cf-aead-6cd8ac235c9f","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":49,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"6fd6db41-25cf-4e0c-9637-c2c021fbf506","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":49,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"7235bd2d-cd56-4dfd-adee-fdeec8d5f913","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":49,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"f0beb36f-5fb1-4e90-8fcb-5b08e3f3d334","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":49,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"f39aace6-c54a-49d4-8be2-12b22bda7098","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":49,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"5a63db36-f078-421f-8a5b-88ab0eaf2c92","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":49,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"ec5d6dee-f5ba-4e07-a94a-5b9b6bf8c372","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":49,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"1babaee4-2a59-4202-97c2-7f639e76ae1d","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":49,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"f90aefe3-a835-462e-b442-2a26feba5d1e","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":49,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"79986e73-064f-4ff4-bd79-76a5f2c37b81","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":49,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"0eea8881-7b4a-402a-b769-7cc5dfbbfb75","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":49,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"5f089ddb-5042-4949-9763-5f92dae4c4c8","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":49,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"7a30f0fc-aad3-4abf-8779-3f1df8b0feff","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":49,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"2ac3e844-4779-4129-afdd-caf31280ca72","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":49,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"540ef6c8-d6e1-4497-9a3e-c37bf27a4888","block_type":"box","text":"Counterpar ty Risk.","page_number":49,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"7b9d6466-0dc4-4304-bc12-0db8329ad734","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":49,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"fb47eda8-5a92-4328-afad-64223bba2227","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":49,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"6c4b4871-db97-4cb3-9902-81032e3254f0","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":49,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"d9dcae36-dce9-49f0-960b-023d0e1b4d4a","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":49,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"8dbefba3-5d86-483b-ba7e-0d6ec55e5c05","block_type":"box","text":"e.g.","page_number":49,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"64ba1a24-09ec-4664-b7e3-90bb3b752ac9","block_type":"box","text":",","page_number":49,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"2705e606-2752-4544-9bc4-48d3dc692acd","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":49,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"e89ab604-aa65-4c28-b0b1-79ce6a97cefd","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":49,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"d11dd39e-4305-444b-b7b2-7e3acb72d8c7","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":49,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"14ebf7aa-0f28-4a4b-8a27-b92443a60efc","block_type":"box","text":"obligations under the structured note.","page_number":49,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"50cf5ec7-8105-4b61-b3fb-60cd2bcb7712","block_type":"box","text":"Convertible Securities.","page_number":49,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"94f2a337-c284-4a97-a6ae-f5c43e0130c6","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":49,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"0b7f72bc-2cbe-4e3d-96e5-d334df87eed4","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":49,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"4bc52d22-1dc8-47e3-ba3b-5cade3e95466","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":49,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"73a6e42e-b1ed-4441-b933-963e14cba718","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":49,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"1013cb4c-fb26-4306-b747-cc98136186bc","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":49,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"49eb4fcc-8d10-4770-a36b-a91bd0d71130","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":49,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"e201e84e-c5b9-4814-ab9c-e4ff2821936d","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":49,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"6e8ed99d-6b54-46c8-9ea9-fb75757ac5f9","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":49,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"82a99a07-fd10-4973-abae-dfc03bf14818","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":49,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"f37f522d-31a8-4852-bed6-e0d9868b0a27","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":49,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"4d8a9223-60ad-4e12-81a1-30c373c4a47e","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":49,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"516c5675-3d56-4fc6-935f-485fff9c12ac","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":49,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"dfe58188-266d-4ab3-a204-e984d234023c","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":49,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"e449abeb-5838-434d-a111-ce44ff4ec83a","block_type":"box","text":"II-5","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3f496af6-6f55-46c5-bc2d-05d7305e3e0e","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee596ac1-3c6e-4c76-b5af-167c9f2631c2","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":50,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"61b1d16e-288b-40cb-8019-8ccc3a0a36e9","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":50,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a504a0d8-4c54-46fd-9558-83b916bd4f55","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":50,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"7bc0ee93-eda1-4880-bd26-c4e8785a3f80","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":50,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"be159100-95d6-43a3-b71b-d929207bbc65","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":50,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"02585da4-68d7-453e-baf1-cdf84611d0b0","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":50,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"2bb0fb5d-be2f-419e-b1c2-0f29ec21c4a6","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":50,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"622b14a3-7426-4b29-8d6a-b4a6105f9db5","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":50,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"d384d376-b136-44e2-a645-2218f28ba986","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":50,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"80bbee49-06db-471c-acfd-685083225d7f","block_type":"box","text":"things.","page_number":50,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"e4c56607-0cd2-40fa-a994-8d20ce80dcd6","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":50,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"1ac54cb9-e753-4c37-a8db-d5fb8ffa7fc3","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":50,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"70e99c8f-4318-4fe8-b188-9ab0649df19b","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":50,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"3951f262-73bc-4521-ba20-0e15513e4dea","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":50,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"0e373677-fb9f-4462-8c81-374585b513b7","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":50,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"d1cd8d96-e95a-4a2e-8a69-9cdf86db8b02","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":50,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"88ccd73e-118d-4d3a-9627-da13cbc6cccf","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":50,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"e523aa53-31d9-4109-82fd-680343bf4211","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":50,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"e33a9a85-0cae-4377-9988-b724f45c17c9","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":50,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"11751bf2-8a25-40bb-b4e7-97bf9a5c727e","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":50,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"4dff5d4d-3ae9-442f-a25b-7adcb2f93403","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":50,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"06649391-1645-4c71-87e8-1dc2088024f2","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":50,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"d1c57666-ac91-4fc0-b34b-ac2e0994901b","block_type":"box","text":"i.e.","page_number":50,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"d5d1212a-5264-44de-ac7a-c24fcf750e77","block_type":"box","text":", strictly on the basis of its yield) is","page_number":50,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"6da5f83f-0734-458c-a12b-72df1b693d83","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":50,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"77a3815d-403b-49c2-b985-58e5367dc84e","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":50,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"bfa5dbe5-d7a6-49c3-bbb9-0a6180378954","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":50,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"0248d1ae-04bf-4aa9-8f49-809e16494c63","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":50,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"d93ff465-cfea-436f-874e-b1880bf33346","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":50,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"30e4db6a-ad42-46a3-993c-c587a525c60a","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":50,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"aa1d5a83-d059-4c90-875a-a97479b348d0","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":50,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"4e6747c0-7267-4523-a608-e2b8ac502ebe","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":50,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"c0ba4023-1ed8-4be3-9087-730e524d6547","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":50,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"d13f16dd-62f9-4e61-b3c2-e50d43aabae0","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":50,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"52d92ce0-6d61-4c67-8d45-870fb32d675f","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":50,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"8067b93a-13aa-4e40-9842-42b2a122693c","block_type":"box","text":"than the securities’ investment value.","page_number":50,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"2814f664-0765-4fe0-8cff-0c5d93fc9f9e","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":50,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"d08d3630-686f-4cff-a336-aa3978fee481","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":50,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"ef605860-8086-4ac2-b3fb-897fcc2f684e","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":50,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"cada3c3e-4344-4f52-aeca-9e52f32d2d2f","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":50,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"90c6c7d3-3bdf-4a59-b8b1-64a140fa520b","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":50,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"89cd2d88-247a-412e-9999-4442c3462f12","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":50,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"fc2b6e81-d3ec-4a30-b5ba-0f1e3497db16","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":50,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"445410b5-cd74-42bd-aeb6-8a58d6fcf114","block_type":"box","text":"security under cer tain circumstances.","page_number":50,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"553c6b58-6662-44c6-a0a8-d87bbecb34d2","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":50,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"33fa378e-944f-42d2-9ba0-853e0e3e3ce9","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":50,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"f63d0e00-9aa9-4324-8eea-9e122784ea9a","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":50,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"cbc0a08a-a165-4e38-92d7-ec5d8246066a","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":50,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"f6493ac9-35b0-42da-8592-3db16321593d","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":50,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"624fa060-2b4e-4208-a885-d786f889b8e9","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":50,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"ffe1fe7a-9f5d-4f47-bfd0-09af470f158e","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":50,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"b5ad4abe-416c-4e6f-b89f-c5ee15e4a273","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":50,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"422c5351-581f-409a-9db1-6df722cea7f1","block_type":"box","text":"i.e.","page_number":50,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"ff0beeb2-105a-42d5-91e9-426837cb2585","block_type":"box","text":", fixed-income (“fixed","page_number":50,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"343b97ce-3a46-421e-a32f-27185ccd8b1b","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":50,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"e35fefaf-7510-4b46-b37f-99abb22ab36a","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":50,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"537b3b9e-a175-467a-a4a6-010c0f6f3e7c","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":50,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"c1dc0d53-a42e-4e32-84ab-b5b3ce3556b7","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":50,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"2e10b1e1-eb67-4143-94a4-a3a57b467164","block_type":"box","text":"II-6","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"44f576fe-4ead-4839-940e-5bd5136e7fbb","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b163c228-210a-420b-b80b-464a6daba274","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":51,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"9eedc3b7-7713-4b04-b7be-5b8a555488f0","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":51,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"6086b4d5-19dd-45b8-bb2e-c00390b68b75","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":51,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"893f75bd-0576-4d2b-b77c-e8094d8f70f1","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":51,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"5aeaa5fe-1435-4615-a73b-72a2617a9a18","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":51,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"29873fdb-a636-4a05-9c00-6fab6035dbf2","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":51,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"cfdce1c6-0f0d-4948-8333-cefc7105a656","block_type":"box","text":"component.","page_number":51,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"5c28c7eb-09bc-4870-a338-c3cd5daae971","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":51,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"f9d28584-69b9-467a-86e8-57b80146225c","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":51,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"1189d3b0-2603-41f9-a8eb-e6af17e9a635","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":51,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"eede9a8c-c7e3-46a1-a701-96eb06215882","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":51,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"1e286dbd-af3a-48ac-a04f-9cd13cd3b270","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":51,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"b08098c0-9c41-4dc9-a484-bbec7cf6e33f","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":51,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"8ef31f80-9647-49db-9ce7-3ee03fb3b112","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":51,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"36a45f2a-6f81-4df0-8d0a-73d1d1de9edc","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":51,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"56db9b58-c220-4602-a536-002ebc0327a6","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":51,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"816aa60b-789b-445f-a1eb-abfaa78909c7","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":51,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"04a19733-3df9-4f7e-9849-2bb474b39118","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":51,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"9d079d6d-a06f-445e-b8af-e0c652285348","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":51,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"3a7435ad-c053-4395-9926-d0001f7d1d58","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":51,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"108ccca5-cd5b-42aa-aa79-3b6f08f5d4b0","block_type":"box","text":"favorable market conditions.","page_number":51,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"06a7b54f-298f-4eba-9adc-5251366b6ba9","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":51,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"acd8ddff-d603-4a74-96a9-8a29e5b42948","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":51,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"bdd72538-6c39-4282-8c0f-6dc22c3640bd","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":51,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"e9ed28a8-af03-4f5c-b2af-bab779e4cd8b","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":51,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"16813699-7880-404f-82bd-baa67acacea0","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":51,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"4bff2586-f172-45e1-ba41-3fa9360fcab2","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":51,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"7bc0122e-1226-4e2d-a01a-39a7bbebc44d","block_type":"box","text":"Corporate Loans.","page_number":51,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"e3163e37-78fb-41aa-aa7e-27f3d531681a","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":51,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"81129e84-5ab9-4fb3-9636-04a2f9b9ed8a","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":51,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"5036bf01-9c19-475a-9dc2-54c038289620","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":51,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"4762c7d0-1533-46ed-9bc6-9bce4a55f1a6","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":51,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"760f8e73-6b1f-4108-90a3-46a5c036330f","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":51,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"45d9f664-462f-498b-8e0b-8f681e032e16","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":51,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"f209cc40-ca23-4140-a85b-76bff7c12ec0","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":51,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"5b30ce86-291a-43b8-9f73-89043094220e","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":51,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"0683ec52-1528-4e34-90d9-9233e2c1d52b","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":51,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"85c282aa-54a0-4f42-b2f7-ea695c4bf3fd","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":51,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"f229911d-83bc-4be8-b39e-921aa7cd499e","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":51,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"fb3494fc-22ff-4b6b-9d45-6ca7732ca9da","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":51,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"54ffaf33-88f4-4bfc-960a-67f36a5c219a","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":51,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"71f5b0f1-4828-40fd-bed5-639223243546","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":51,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"952b5175-e90f-4529-9920-80ea99dbabe4","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":51,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"9f66e271-2e5e-4b0a-b7c5-67e89cd09a2b","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":51,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"0c6fb98d-cb4c-4f7e-bff3-12b4ce98f06d","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":51,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"aecba2d9-487b-43fe-a5c3-f3824813e362","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":51,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"083a52bf-df31-4715-948d-1052f2faad1a","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":51,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"b1f98527-62f4-4e0d-ac09-28b9a5d87f7b","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":51,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"1d99ca32-ecd8-42be-a2aa-9bbc260e14fb","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":51,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"7faebae0-67cf-4323-a348-b6cfdfe07c48","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":51,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"065c3e34-b154-47d4-a135-cab2c53a88a6","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":51,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"788aa330-b005-48d4-a025-a04c762681ba","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":51,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"d5a51ea4-7708-4366-8662-ff9b80611559","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":51,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"27c60638-8889-44a3-84b3-b8bfafa96a81","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":51,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"f6c4e1dc-9181-4c9b-ac30-22fb71231d1b","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":51,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"68e61a29-627c-47ab-8c18-297c28213b57","block_type":"box","text":"of the borrower.","page_number":51,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"f9d3ef07-6baf-4a86-ab85-216107874fd3","block_type":"box","text":"II-7","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a8e790a6-030f-49a2-9fd1-abd64709b0c4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3955f94e-c051-42db-8546-c53065d9a25d","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":52,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"7c1a6153-bdab-4182-8f31-d574b2acc6b4","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":52,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"54566a6f-090a-4f08-9ee0-e26fee88b288","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":52,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"d47463a6-8b7f-433d-8796-d0ad35cf63e1","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":52,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"08fedcef-e6de-48bc-a962-d74d4fe19f7a","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":52,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"7c70a7a0-2702-407a-9dcf-6baf411602da","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":52,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"490d58c9-6b8c-44ad-b50b-64ae7a128a9b","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":52,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"2724ab26-c9a6-422b-89c9-68dd0eb2c30e","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":52,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"1c08d964-ae33-4cfc-a425-3feacda5e591","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":52,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"f2b4a34c-03bb-47ab-a388-2d44c5707e06","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":52,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"03c7a49b-33e1-4307-9e39-daaada40a1c0","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":52,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"2706e4c1-f3a0-4c7c-b3fa-8a3660288c1d","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":52,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"6eef63b8-1e37-4393-8bee-f04a7607901e","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":52,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"56d37add-cb79-4ade-8781-def1b94ad72b","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":52,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"a9458aae-81b2-4634-a0e5-1038956d6d74","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":52,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"cf67bf03-88a5-4894-8543-829d6ba6e83e","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":52,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"f3eb2aef-4748-4d68-be59-a92526ac17d3","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":52,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"4c4a2bf1-17b1-4a3b-93ce-17ca310d5176","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":52,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"dd9ac8bb-ad53-4143-8b64-3b6e2868d578","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":52,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"94ee6c35-d4fc-4aaf-9a16-b870db301d95","block_type":"box","text":"state law.","page_number":52,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"94f0c852-363a-4a54-9c45-da3a57175b98","block_type":"box","text":"Direct Lending.","page_number":52,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"98a0a7f7-3d2d-46c4-bbb7-1b3c9986a51c","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":52,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"71798d4b-cf68-4130-8a7d-ed4855ea7b61","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":52,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"4c02ecc2-9c31-4f1b-ba8b-e5d16699f36e","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":52,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"895e7b3d-4327-4091-ad7e-4cebe7289457","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":52,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"74fcc44f-17f7-40e5-8cc7-7fd3c839a4d2","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":52,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"8f9b36ea-ef7e-4414-b274-b4bc276b6814","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":52,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"ff28dd7e-c376-492f-b2ac-8b9455031b4a","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":52,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"4b9227e7-4c1c-4db2-ad2c-de8742723ff0","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":52,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"6233c1c9-571b-41ab-bbb0-997981dfaf2f","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":52,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"0597dba2-cc98-4c5f-bf9a-5a0d187a110c","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":52,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"fd335b5f-c61c-4d61-9ab0-af233bd65bc7","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":52,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"8c8781ff-e8ac-4ef7-a449-63f0b529430a","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":52,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"c589615e-759a-4b8e-8c41-904784c119d4","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":52,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"aa4a9ce5-fa53-4a4f-8c4a-4925c066a7e0","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":52,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"d631bd49-739a-4c7d-a660-1fd4544cad8b","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":52,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"3773be1b-6c3e-4dc8-80da-16d6fd896cfa","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":52,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"b792a1b9-5558-41d0-9ffc-d2b8350f77eb","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":52,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"d3e50938-9e21-46e0-a34e-046ff286885c","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":52,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"11caf5c5-30ab-4681-8969-bb6cfa19bcff","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":52,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"5ece7df4-4843-428f-bfdb-8e5cb22c37d4","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":52,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"0c8996ec-7868-4756-930b-0fcb615b6575","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":52,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"3025abe6-e7e9-4f63-ac8e-0338b9917080","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":52,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"586dbf0b-aaf2-4bc1-a3ba-6bd6015d04b1","block_type":"box","text":"Credit Linked Securities.","page_number":52,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"8de46aad-b20c-417e-8b71-cbdf495a1e74","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":52,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"99c426f6-4b53-480d-94e4-c404dc6f2f33","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":52,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"4b25aef4-f954-4403-8c02-c42b457a1ddd","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":52,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"ce5fa818-a32d-4e4e-8ad5-cf1f33cb0bfb","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":52,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"5c4b4d7f-b76a-4f1f-ae3d-48579ba2e570","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":52,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a06b8f55-fee7-481c-b70c-e08de2fc531e","block_type":"box","text":"traditional income producing securities are not available.","page_number":52,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"7629997a-4ed4-4957-8c34-f1487c4f20a7","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":52,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"74f90c8d-fc93-4325-92a5-dab4d5e0fd8c","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":52,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"5a4aa45f-f321-49c1-b86a-f4904e4a7e87","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":52,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"74a2cb0c-e13b-4b95-add3-4ecd8cfd7a2a","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":52,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"48dd5788-b9d9-49c7-9367-08e51954f289","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":52,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"8cd015ad-fe39-4e4e-9b78-e6d563a05bf3","block_type":"box","text":"II-8","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"479abd4a-6a25-42aa-a08c-1c6076d34c9e","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70fd0c19-723d-477b-90b4-a490893032ba","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":53,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"f76413a2-00fb-4d5e-a337-e5ca0a58371a","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":53,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"263b4151-a1a8-4cf2-bd2d-257bd8d58c63","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":53,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"1d75e84d-e3b6-43c4-a955-08e30aa2ad6d","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":53,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"0e5c1a39-ea27-4102-9ab4-70cd3d01ffe5","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":53,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"1f17986b-3f4a-4931-8731-393e862a80b0","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":53,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"ed38cbc9-f610-4449-a18a-daae7258dd4a","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":53,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"5666ba0b-346e-4ce9-9263-18643e4f54c1","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":53,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"cd4c9ffc-0afd-47bd-bb29-eacc9ebd273e","block_type":"box","text":"investments.","page_number":53,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"8a1befd0-0ced-4b19-ab67-a9be4129484b","block_type":"box","text":"Debt Securities.","page_number":53,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"f05b031e-b3a0-46c8-9c1c-4799a85db3fb","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":53,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"8315974d-ead1-4169-9136-4f072130e126","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":53,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"6a331f81-6fe2-4418-99c1-31ac3eab125d","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":53,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"6d8989ea-4527-4a71-a501-6c0c6c3cee7b","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":53,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"45d6d0b5-6e55-4e35-a4c4-d475c1b886f6","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":53,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"33bf8ceb-8281-44ed-9f27-2121dda650ef","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":53,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"27aba0e1-68f1-4709-9eee-4808af6fa48d","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":53,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"989257ea-2f3e-4b99-b248-58fb12a141fd","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":53,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"2ca1e96b-64f7-4556-9795-361e9174eb68","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":53,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"de256269-8cef-4327-a591-e659dd995a9f","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":53,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"2da58e83-bbe2-438a-b6e2-1ec9b74bd7b7","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":53,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"891361bc-a8ac-446e-96f3-816c708adc5c","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":53,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"c2d0f276-09b4-44f6-ad5a-c5fa1c4fc1a4","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":53,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"170be142-449b-48ef-b42a-8810d1e9e9ff","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":53,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"d3621894-41d4-4eca-8c43-f5f518e9f88d","block_type":"box","text":"lose value. This is known as extension risk.","page_number":53,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"01b62d45-d79d-4aea-a7c9-ad70fd5a9d64","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":53,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"8a2a8d18-d250-4eb1-9068-65e03a2aa5bb","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":53,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"2916001f-afcb-4b77-baa7-c2debcdc5c4e","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":53,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"ab4aad9e-f036-40be-b0ac-89fb9ee4e0eb","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":53,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"9f11acdc-1827-4c0a-ba18-6303e476132b","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":53,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"c5a70a42-81a0-4653-bf01-7d43112dc29b","block_type":"box","text":"Floating and Variable Rate Securities","page_number":53,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"e87ef233-b3d0-47b6-9853-45cc84298d95","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":53,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"c09bacb3-2f8a-4f97-9662-f24712b6c1d9","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":53,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"91f72e46-a3d1-48fb-8bfc-d63fa70656e5","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":53,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"1d3cd103-9d43-47f7-bd66-c5e0a4ead180","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":53,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"897ad47a-f3cd-422b-b833-90f05527376d","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":53,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"d4556b34-fbce-4d40-8b92-85d1a0002fbb","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":53,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"ed671f0a-8238-4f84-a5b3-4c9801cf9e8b","block_type":"box","text":"market interest rates.","page_number":53,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"44858b90-72c7-4337-8e80-95b4c4955dbf","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":53,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"243d7e9e-7bba-414e-bc74-8bd3af7c7fb0","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":53,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"a54e12c5-e570-430a-a4fd-a392141f04d1","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":53,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"4384db4b-45a9-4ede-8bb2-b54d3b470f52","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":53,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"0edd0deb-21ab-401a-8a0c-8db4c95800f0","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":53,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"f8e6f5a4-c4fd-4ed6-962a-75c4406ccd8a","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":53,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"cd4251bc-aae1-46f0-8099-cdd28fc8c59e","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":53,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"7a78a3d7-99c5-47ef-8076-6daaea9808ad","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":53,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5f4baacf-0380-46fc-85bc-bc81fa9c352d","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":53,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"63778c4f-21b1-4cbd-a453-ea96208cac45","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":53,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"0bf3e9f3-2a1e-4140-a950-3b22b106c543","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":53,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"8b0a5249-bde2-41d7-82e5-ca4be6852d0f","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":53,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"4621fb9b-fbad-4052-a7ac-4e9e12945800","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":53,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"397987ea-7ba6-4e48-be59-d9b06df9f91e","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":53,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"d1bf5334-d06a-4a54-9cfa-2ab8bdd4587f","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":53,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"941c4149-0428-49c8-a3fd-5ff115b4d296","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":53,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"137e9580-9f67-4b3e-8a55-7bb92dcb92e7","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":53,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"39921a85-857d-4b55-a95a-8bc38ad7fe3b","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":53,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"ec07743f-b11a-42a4-9b57-1c2a08b2272d","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":53,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"2feb0917-5017-49e4-9d8e-1bb6f9ad779d","block_type":"box","text":"II-9","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"22914052-52bf-4501-9e25-2a57f3f7f1cc","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3fa8363c-1350-4ae4-8af3-67f2333ed3aa","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":54,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"5c5c99f0-675a-4994-b5af-dcfce14b7559","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":54,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"a9dddde5-e824-407b-97f1-c3899eb38ac9","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":54,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"cc322a18-c995-4567-904b-d6a10d5b3581","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":54,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"60ffcb52-4d24-47ca-8e98-60ebfa9f7bc7","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":54,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"f6862d67-34b5-44ca-834c-1c9470a4195a","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":54,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"14db1a4a-f952-43ed-99b1-fe8c1deb801c","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":54,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"4ad181f7-4542-4bf4-a579-3491d7fac4a1","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":54,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"15196c84-fcd9-4e5a-a385-b20e6bd5b1c4","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":54,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"3edbf3e1-41d6-4238-986c-850d9866afbf","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":54,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"7e824c98-bf2a-439a-9bd7-09b82a4ed648","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":54,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"cd5aed3a-4764-4d9b-8a01-dfd33e44ae3a","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":54,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"cf693da4-772e-4512-b62f-8b17cc0da776","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":54,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"bb639077-9faa-4e73-9b8a-cbd1ea697072","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":54,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"0c8b6341-f458-4b17-8312-2326a5194927","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":54,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"6ce1eb9d-85c1-4805-be44-a6bbf4a68c7a","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":54,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"58a0bd92-f21e-4d83-8f61-48eb8e23c6d5","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":54,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"d8e27f7c-07fe-482f-a386-530812690b5b","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":54,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"55619c81-61b7-4bf0-8575-16e2fd495ea0","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":54,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"2bb94da2-17d0-427e-a0a5-2c5b21aaa7d5","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":54,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"a4d8d6cd-a015-4dd3-87e2-e624d41b0f9c","block_type":"box","text":"United States.","page_number":54,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"ca50819f-d0dd-43c9-aa50-1869ac2de37e","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":54,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"32a61766-5680-4d68-82c3-6c34894b2a41","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":54,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"b9d3a06f-1dfe-4267-bbce-8d1c693516c3","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":54,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"d189cc4d-a005-45cd-9f26-6a11a5c65cde","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":54,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"3c559254-dae8-4984-b852-f7189db71742","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":54,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"3708c430-803d-4206-82c6-7912e5c223c9","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":54,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"3b261ab4-4387-47bc-a9e8-50b1c0f789e7","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":54,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"7353a94b-cac8-4e2a-96fb-c24a261219bf","block_type":"box","text":"i.e.","page_number":54,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"7adf6942-d4f4-47c9-9676-18453b95e706","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":54,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"18fb309f-47e4-49ac-bd70-cb41d4863a56","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":54,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"d741d754-06b2-4062-9323-29f6edb65013","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":54,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"7fa586f5-6be9-4a4e-a15c-b5ee4604d24d","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":54,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"f51ed504-0802-4a89-a79f-7c08378c4104","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":54,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"d57b4976-c4cd-4867-9847-20dad0a3449e","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":54,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"60b47ba4-3b6b-4932-ae6a-a45df37a97b8","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":54,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"2d625759-61c0-4145-aecd-dc5c500aa527","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":54,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"2e8865d6-47cb-4d94-a482-d5deae43b79d","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":54,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"885f35af-72d1-4361-a1d0-57355c3c2d21","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":54,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"f77ba485-9e65-4a40-ac2f-0d5f5892c6f6","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":54,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"c7518afa-9a96-4060-a3ac-0f5527845986","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":54,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"e052c24f-a892-4d8b-b800-a1f68c708751","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":54,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"ad926c37-bb61-4472-a4da-6245c2e295b1","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":54,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"e4ee5cac-4401-4230-bbd2-4d5b6fba3ab6","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":54,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"0cc2830c-dcfa-4ca0-81d8-5c5eb2596dba","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":54,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"253ef0b7-6bd3-4b47-a553-5880b2b8f5c4","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":54,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"1244494e-cbfa-4fa1-b695-135be01cba17","block_type":"box","text":"risk than higher rated securities.","page_number":54,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"5f068336-557d-4be4-ba9f-9cb796356389","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":54,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"ef31975d-503d-47c1-ab64-bea686b45404","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"6de0b96e-8e0e-4c67-9fe9-226abe23a7c6","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":54,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"01b0474d-6e85-4bb5-9ddd-199a3fdeebfa","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":54,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"0caa0ec5-3ee9-4e08-ad8f-db319f53db23","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":54,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"44079c99-8824-4103-9bba-fbafa20beceb","block_type":"box","text":"unavailability of additional financing.","page_number":54,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"703d115a-0420-40cd-88b1-06e6ce91636d","block_type":"box","text":"•","page_number":54,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"485ba11f-d2d9-4a6e-9007-8490fedeb057","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":54,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"c621e5a3-5449-4613-ab37-c1333631451b","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":54,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"295b59e8-15ed-4ea4-9488-8b9e39a3251a","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":54,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"b325be84-0461-4fc6-b544-e9433fc4b76a","block_type":"box","text":"II-10","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8b99deec-30d7-4cfd-8ddf-4243382ba889","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51e8629c-a756-4069-9a7f-def27faba7d8","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":55,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"0f8faba7-a9fb-42d3-9def-4636bf0d9dc6","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":55,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"a9733695-d8eb-4a09-9a63-0854981f5327","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"9fb02b4e-0fe5-4eb1-a845-8b6b07c086f6","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":55,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"fad8b6cd-6c55-4229-9271-db61c3870892","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":55,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"98bfc6c6-c156-4990-bd08-c36319c9d971","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":55,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"b1a2c651-e1ff-46c3-875d-65f4f15ac43e","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":55,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"b625dd8c-0d3a-417c-8bff-371de88db2ba","block_type":"box","text":"investors in higher rated securities.","page_number":55,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"4884a582-a7ea-46ec-a732-dac5b8146cf0","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"326d787e-705a-4198-9bac-3655c23cee87","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":55,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"2ade4488-a1f9-4d7e-8846-d8fb45f4607b","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":55,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"84bcf337-52a2-407a-89a0-290c4c22f7cd","block_type":"box","text":"lower yields and may lose income.","page_number":55,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"92f61d9f-5573-422a-b0ca-e76bdf0fae5b","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"e1ee45e5-3bee-4c73-b969-a14655c713a9","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":55,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"96cc691e-58d3-4d10-8517-3084b1b6ae69","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":55,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"17bf3308-fa45-4c25-9f6d-570e9dec5038","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"5dc80536-033c-48f5-b4b8-a8c4dc014492","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":55,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"ee9ddbf6-b910-428e-97ce-a88ff93de23a","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":55,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"6e92c95a-6315-4892-8b09-7922c00bbe1e","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":55,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"a266d17c-8f6e-4919-8505-526ea9145bd0","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":55,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"9772c6d1-5f07-4c1b-b75b-fd18373fa984","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":55,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"4bf67917-24a2-497f-a7be-5df598c943f3","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":55,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"e30accce-bcf3-4eb3-b8b8-3bbdd5b692a9","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":55,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"3a8496fb-31e1-4d92-955d-9dd8d63c554b","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"40f7a76b-e969-4e17-9883-79abfe549d7a","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":55,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"dd15ffbf-a9ae-4f4b-b6f7-dcda3f176a54","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":55,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"81a925ee-2a89-41ef-a45a-7fa65f8cab3e","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":55,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"26785861-57d8-46f1-a8af-7d9dc2956094","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":55,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"026bb1da-5ee6-4ff8-89c1-b3cb6782bb17","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":55,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"df62f304-96a1-4d73-91b7-d02b54567caf","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":55,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"bff27b6c-17a5-41f2-ae1c-c4db096bfa09","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":55,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"58aaa95f-79c4-42dc-8919-07b73db2db49","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":55,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"24beabc9-e43a-4967-b4a4-5574529b2bd1","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":55,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"b55b1f7b-55c9-4a23-b058-2bcc24f60b98","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":55,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"1eb3ab81-dc23-40f9-b2ba-b9d0f14409e6","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":55,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"70726e3d-95f7-4a39-8917-6bc13087975d","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":55,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"fc24a5cb-7a90-4b3c-a619-beb411eae6c2","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":55,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"2b4821b1-bbbe-4261-8291-1aa40d4607ee","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":55,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"87a3fd4c-0d10-490e-a190-1993e67fa005","block_type":"box","text":"role in determining such valuations.","page_number":55,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"eb24576d-2eaf-4bdc-acfc-469f97366669","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"195c2dd0-07c5-412c-9878-e2d4a3ca7d8f","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":55,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"3689c047-193a-44e7-8430-aebd0328c820","block_type":"box","text":"a defaulting issuer.","page_number":55,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"79d7310a-181d-4fba-87ba-b085fc931fec","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"bddd63c3-84fe-40cd-941a-4fef71268347","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":55,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"52353bf4-11bb-436e-9b3c-0c6fd100d023","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":55,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"aef46e2a-d96b-4196-a00f-5787f3f7ad28","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":55,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"80fdbec9-815e-4a5b-8489-e6b9f5d79733","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":55,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"1ae561d4-508c-4ede-9823-51bddc9be111","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":55,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"3d65f130-7d14-4fff-8fe6-2438ec5f4f8d","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":55,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"fcba4ba1-b47b-4f98-a933-331fe30eaed5","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":55,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"34cbf5f5-f0f1-4a75-aed9-8302517ecc0c","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":55,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"be6385c0-e820-427f-b029-429a9e0f7601","block_type":"box","text":"•","page_number":55,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"c8df92dd-94eb-49ce-80f3-bf395636c4f3","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":55,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"6f7f7503-04c8-4dfd-85cb-ac5a630f8529","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":55,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"d65403c5-8abd-4176-83f2-382b757f04c9","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":55,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"9dc99507-a596-4477-96a3-9cbdfc03afee","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":55,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"6dd879af-49b4-478e-8e87-f3bbe4f1c0a5","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":55,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"b0f40fdc-40df-4902-b34d-5fd30b426628","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":55,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"4aad9786-7b0a-4492-ab40-026d1ad6b464","block_type":"box","text":"higher-rated securities.","page_number":55,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"3b653e85-60eb-4698-bfc8-4d9b66c60926","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":55,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"1f46834c-09fa-48bf-a015-881e2a4eb813","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":55,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"72ffc5bf-df30-4b71-b540-5f7221c5ac5b","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":55,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"0fd005df-76a3-4ea4-9a23-f20c8bb1eee4","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":55,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"b496a7a9-3e7c-40bf-94d6-549266f03ede","block_type":"box","text":"II-11","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a6d71864-c040-42fe-b329-f796a0b6a20c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f4175c1-8426-4d43-b195-b9950ad4e87e","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":56,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"d01c317e-618c-4211-93a4-78024969b8f6","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":56,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"55853ba3-da53-4ebd-b2b9-189bc553d485","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":56,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"688f2360-b298-4334-a6c4-c20e234b4d51","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":56,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"1c28a192-c8ee-488c-8d3b-b1ca32f73ef5","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":56,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"39f1ea37-de59-4693-85de-0644e9217fdc","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":56,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"934d09f1-1dc9-4beb-a318-ed1a515f1159","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":56,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"309b82e8-856f-4553-bfff-c6d36e3d4bcb","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":56,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"4f9682de-9de8-4bac-ab38-d0e508cc4d1a","block_type":"box","text":"Mezzanine Investments.","page_number":56,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"78e29c16-687e-41a1-b0f2-caea60e2bde3","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":56,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"2e5868c2-7f23-43e4-87c6-42483caa7b3f","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":56,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"ade933ac-7520-4cf8-a199-425398f6e9cb","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":56,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"ee08e2cf-2cb6-43db-81a2-4d36d4238f30","block_type":"box","text":"e.g.","page_number":56,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"f8387f88-7289-424e-a5e1-ab2395f6ce4e","block_type":"box","text":", with","page_number":56,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"0f87dbdd-a0d7-472d-9969-7b18eda5f5aa","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":56,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"6b4b56ee-1138-44de-bbc1-6f5a3ee76430","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":56,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"e3930002-a5f0-426e-bb66-4c458d7750ae","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":56,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"fa496848-1ec1-470d-a494-493a60977b56","block_type":"box","text":"other obligations of the issuer.","page_number":56,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"72ec3f13-1e1b-4953-a2f6-601b2684bbe8","block_type":"box","text":"Pay-in-kind Bonds.","page_number":56,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"59257b7b-5145-4182-9cb6-3699c0bbca71","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":56,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"af7ef161-4c9b-42bf-8cac-740ad68cdb5e","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":56,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"c8005f24-5382-41ba-917c-4b3c7b9998dc","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":56,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"0f2ad48b-93a8-44b9-889d-31682909aa7a","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":56,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"0c9378e7-802a-48fa-b7b6-6396530f95db","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":56,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"79003a95-dc17-46d9-95ff-de8ddf4e533d","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":56,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"2e12ae8a-0109-41ad-81f5-f50257f9febe","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":56,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"36f91dc3-596d-4e10-b495-2d491c5ac581","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":56,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"c58542e1-421c-4eea-ac54-f0c56aac8f64","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":56,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"3d6148b5-8ac7-4cd5-9183-431d84dc238e","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":56,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"ed3cd234-9dc7-4276-ace5-6b02eaae3a05","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":56,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"5d6b84f1-95e3-4cc8-8c90-652f9e1602fa","block_type":"box","text":"Supranational Entities.","page_number":56,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"8619046b-e2b9-44b1-b4df-257c2a21a988","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":56,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"9cd5523e-cd05-4cef-94bc-64f0a0e365df","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":56,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"8b516006-d472-4af1-8b20-d9520dc6c280","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":56,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"6ad26b60-776b-44d8-bcbd-684efa3730da","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":56,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"9c79bd71-1623-4e83-bc6b-7c394dbefd17","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":56,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"a894bdc9-40e5-4de3-8b18-73024799cf78","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":56,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"78901ca0-82d6-4d95-bb21-582628ef653a","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":56,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"e9aa490b-2f6b-4b27-bebc-25bb0ad85c0d","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":56,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"13faccb8-146a-46af-bdca-c164d64235b9","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":56,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"8479e372-f766-4f72-83dc-82fe729c5162","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":56,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"a8a36f0d-1990-4c07-bf33-026bf6cf94bb","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":56,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"3d6626d5-1f46-46a7-b2ed-adc700c296dd","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":56,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"43f2048b-06e9-4ac9-9805-d2ff14cb6a86","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":56,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"c2998179-99e9-4f91-9ee6-c40bd69751fc","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":56,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"9c893cd6-e9a8-473b-8f1d-adf714d688f0","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":56,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"5b3c97e0-f4b7-4a70-bb4d-3bccf8695dbe","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":56,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"32ccac07-3390-4ab0-8743-e15f671c5f19","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":56,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"f133a81e-c599-4855-a780-b0bf054404f2","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":56,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"9fd2b216-79e2-4ce6-8f8f-12c41e6f4508","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":56,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"2501ffc7-6335-426c-b3f9-d2b2a724b9aa","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":56,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"35dd2377-49c6-4842-9b5d-85cf87d8be64","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":56,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"1f49dded-a8a1-4d73-abdf-33f352ac8316","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":56,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"c4f7559f-9d11-4889-af4a-92891c8d6aae","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":56,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"2b424a44-b05f-48d3-ac04-edec85c1d003","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":56,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"1104edd1-63a1-4e44-814c-e1c669d7c1b7","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":56,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"9cc0ea2a-8134-4fcd-a868-d3831f10386f","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":56,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"4d4b5991-dc1e-4acc-bcbe-e147825eb18b","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":56,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"27f11397-63cb-4a19-bc77-7be51f9458e6","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":56,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"f5022259-6aa2-4512-9d4b-7de738b62c84","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":56,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"28e923ef-f3f5-4a94-855f-496e9a0fc3a3","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":56,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"84a9b26c-bd87-45f0-9b44-333f77c2100e","block_type":"box","text":"II-12","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"30166b2e-da33-4dca-b7df-d46c885be746","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb960ea2-8a37-44bc-b271-80c9faf42859","block_type":"box","text":"Derivatives.","page_number":57,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"a2b0c73e-3eb6-4bd3-9241-af5868180ef8","block_type":"box","text":"General.","page_number":57,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"7e694ee8-9349-4287-8a25-86e67c7ee5ca","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":57,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"4f126bd5-31b8-43be-af26-4002af4462f7","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":57,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"4823f7c6-ecb6-4d3d-90df-779adc5a3060","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":57,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"3f42648d-704a-47f7-9e0c-490ed1367ff2","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":57,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"0a71374f-b535-40bc-8a85-f32ed41ca00c","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":57,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"26402e55-65cf-41a5-9a60-cb3effd6c4d7","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":57,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"91b78fa8-d760-496b-a0ad-c960216a4654","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":57,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"82631832-9ef6-47a9-adb9-3db1bf1fc16b","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":57,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"ca13c561-8e09-4217-896f-be6d9b435de3","block_type":"box","text":"i.e.","page_number":57,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"5a58273e-5956-4523-a9ad-2fec35c30cbc","block_type":"box","text":", the payment","page_number":57,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"9701954f-f54f-49ca-a126-ceaed0f39592","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":57,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"416fefd4-c175-4b71-8211-089be90ccedb","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":57,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"e6b8cfb8-f6a6-4887-b6cf-f79b85cebeee","block_type":"box","text":"Hedging.","page_number":57,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"b907578f-951c-4053-a849-ea6672ed0579","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":57,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"0e97c261-f146-4236-92bb-55cf55200293","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":57,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"dc46b85d-60bc-4d7a-9933-d90253e7d520","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":57,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"ee318a90-4888-4b89-a915-e340c1471a54","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":57,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"2c8c6975-e26b-422c-88ea-35c2f0f76aa1","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":57,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"5ef06b9c-cf26-4102-8f8f-bfcc39a3aacd","block_type":"box","text":"correlation risk,","page_number":57,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"4e0388d0-d0f2-4c14-9de5-0f30b9857270","block_type":"box","text":"i.e.","page_number":57,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"29391383-db23-4d94-b004-eb6dff76d38f","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":57,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"be47ed1c-14e1-4779-bdb0-a79a8b7ff38b","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":57,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"3af22935-1264-4f0c-91cc-e146b25ad6a6","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":57,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"ccdc04c0-429c-4605-84b3-3f93f1336522","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":57,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"96c0b350-1569-417f-8f67-265edd1afc4e","block_type":"box","text":"Speculation.","page_number":57,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"643f2d58-2aaf-4a11-bf11-b486804eb90e","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":57,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"d9a211b9-9f17-49ac-8afc-5766fb1acda2","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":57,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"af684581-6daf-44d0-b2ff-7d916e71e4c8","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":57,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"9ef7f033-e4c7-49b9-953d-1309a1982ab9","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":57,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"0f593d1b-5ea9-4bd7-bb7d-4ff77eaa2376","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":57,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"3bcbcb86-dae2-48a4-88a5-e8817da08698","block_type":"box","text":"Regulation of Derivatives.","page_number":57,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"ed4d9c0e-8970-42b9-90d8-0d4eb5687502","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":57,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"a7667fd3-3a63-48e2-be39-97d1b74d0310","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":57,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"08060637-354f-462e-9447-2126c24e8de8","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":57,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"d3efcd6b-705a-4096-862c-35d10c550093","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":57,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"319d6a80-a21d-4426-be35-a1188d8353c1","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":57,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"49e95b4b-5045-4f8d-aa43-20d4fa525fd9","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":57,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"d8cb8d06-1f74-45f4-bb15-d9afb8b09f09","block_type":"box","text":"coverage”).","page_number":57,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"17f27798-e478-48f3-9d57-dfeee27b6595","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":57,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"a231a949-94a8-41fb-9a17-d57831993744","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":57,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"7f6bc964-7296-4baf-9b7b-94de0014124a","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":57,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"660a9370-da45-4c72-85b1-4ea2f152e7be","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":57,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"73edccf5-3922-4b52-bb07-eb637cda32ef","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":57,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"96c1b892-8a2c-4e5c-8f07-e0851aa6ba3a","block_type":"box","text":"financing transactions (","page_number":57,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"af37c37f-9058-4488-bf7f-cfe07b7d309f","block_type":"box","text":"e.g.","page_number":57,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"19a767b8-b36b-43a4-83d0-b0b3c5f9a8d8","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":57,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"4695ae67-fd74-4036-be26-f6b5b7936c90","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":57,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"5f9a6ce8-8786-4d44-a5c9-25d1a08a1dc5","block_type":"box","text":"securities (","page_number":57,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"d9092492-c9f5-4502-90ff-3837522f5757","block_type":"box","text":"e.g.","page_number":57,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"35c5a195-a35d-420b-83b4-560b8ed03e52","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":57,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"993304c5-f3a5-46f0-bd69-31801e2b3424","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":57,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"e3b0166e-2710-40cd-bac3-4db03922977b","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":57,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"e041c007-a4ac-4330-85a4-a1598d906601","block_type":"box","text":"Commitments”).","page_number":57,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"bdb6fb7d-3460-412f-bb87-f73db846e6b0","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":57,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"bb4ae442-3843-4086-b98c-91408a732e22","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":57,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"8c8acd37-0293-4f2c-87e3-00f6e383d105","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":57,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"597bdbf0-e165-418e-840c-7de902778bc1","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":57,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"3ad68dce-baa4-4434-8d37-b194c40dac6d","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":57,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"95e5724e-ffec-498d-bf82-42b2d369ac50","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":57,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"4b678f85-5bfb-4edd-af22-78fd6af2c0dd","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":57,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"8ef10326-864a-409a-9084-81043e419963","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":57,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"56664811-00b8-457e-af6d-26eb32301ca6","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":57,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"a6dcfe27-1d53-40d0-abb2-8c52dce5f278","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":57,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"35131ee0-46be-4d7d-8d96-e9b2049790eb","block_type":"box","text":"II-13","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f2db2369-2271-4b12-b925-0747acb4ed1c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0bdaefc9-5781-4d8e-b27c-8f45ed33f8de","block_type":"box","text":"Dodd-Frank Regulations.","page_number":58,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"80453047-c1bf-4708-808f-e72cfc83f477","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":58,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"79cd2315-b591-49a6-a473-62c0d25d51bb","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":58,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"9c087486-2937-406c-adc2-ada96d5ca259","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":58,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"59d56cb2-315a-4078-b8d7-dff3bf610680","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":58,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"5ad3839e-b801-47c0-be52-1c77c7b6f566","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":58,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"98d77507-0082-4364-8e8f-1f8ffc35d60e","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":58,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"d2dff035-364d-4de6-85bd-39357447d2b7","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":58,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"87891904-8418-4c36-9f6f-349f0e921734","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":58,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"577c23a0-d80a-4cc4-b4ea-9a491da38681","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":58,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"532a38c2-983f-4038-8345-e2038ccd800a","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":58,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"83969ad9-365a-4156-83e8-f290d28bd618","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":58,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"c6548c41-3cf4-47dd-bf3a-c18219666b45","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":58,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"21543e62-64f1-40e4-8cc9-de907837001f","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":58,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"79ada855-b75b-470a-be96-1ce6b828bdb7","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":58,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"b94e783a-b0bf-4e62-b41d-089a2ff832aa","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":58,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"53132183-2817-4576-8483-b91e424ace87","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":58,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"a3f1ddea-be6d-46b4-a11b-77adb6b1f697","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":58,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"6c88c0e4-0b74-46f6-9cc2-b8ba76e9669f","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":58,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"fe6d6a18-7e3e-45e0-bff9-3bc6f30ecf2c","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":58,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"78eda6d6-3648-4e01-a4fb-fd5f20b2d8c1","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":58,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"f8791abc-e0bc-4b32-b537-e0c802aa2bda","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":58,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"2725ab3d-d3b4-4c93-8a74-853ac69c792f","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":58,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"8674c201-40dd-47ae-adb1-655bcdb2c403","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":58,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"b9221aaf-df1a-4ce1-a1a0-929bc9493348","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":58,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"db0d18c2-ac8b-4ec8-90b0-38a80853f9b2","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":58,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"52517be8-1248-4a87-9002-9db4fb674876","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":58,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"0383aabd-18d9-403a-aa2b-60da3fc4c45e","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":58,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"8d2c33cb-baca-42c9-afc6-a70ce0caaad8","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":58,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"dc1773a4-3bf9-401d-829b-28c78e2b4b4c","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":58,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"b5ad9877-6a7a-4714-b13d-9a3737593695","block_type":"box","text":"member.","page_number":58,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"df5dd0ce-a7ad-4260-8d83-ae6a299b0b48","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":58,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"e477010b-410d-46f5-a791-2dbf8bfc81c2","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":58,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"257b5e8d-e997-4076-8720-15c72d1512f4","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":58,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"6ea5b768-761b-4685-8a57-e21f8ec816fd","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":58,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"0a94fdce-cf98-4728-b12e-640e1a0b6ec8","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":58,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"ba0aa626-2664-4d94-8633-dfd1fdcc7f99","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":58,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"c31b0ea2-4803-44b7-baa6-a6f9f80cdc7c","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":58,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"6e3c7cb9-18f8-44f3-a326-4a90a4f011b0","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":58,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"881b5a5c-204f-460c-9a13-d10e07a90305","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":58,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"7e83fb2f-5cbe-48b6-bdca-46c0f0d77a88","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":58,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"2dc03919-8f65-4f15-afd9-53aad548cf6a","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":58,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"e33313bb-dc80-493b-99e2-0254703c76f9","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":58,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"d1f2dd5a-6922-4a15-a677-e0a4ce27e07b","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":58,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"3a6e8bb1-a10f-4cf4-aaa0-c54c2a33b8a8","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":58,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"9cdccf92-2eb8-4f74-bba4-96210d40b3c5","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":58,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"94ec5814-b0b7-41a0-a1d5-da495fa1e612","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":58,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"56b65433-f908-4c75-a1b7-23edda4e78f5","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":58,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"5332cc94-a92f-4cde-b6bd-a46b8b458f5f","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":58,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"61ac105e-77c6-4dbd-9e04-e2fbaa354692","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":58,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"0b1a352c-9c7b-4fb5-9976-27d537083b00","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":58,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"d325188a-e0d9-4599-9b6b-82c7c5ef6aa5","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":58,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"3cce0ae3-2199-469e-a4ad-7a779f51e854","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":58,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"79f6f8d7-d830-447b-81dc-ef3c7fb42612","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":58,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"d88789b8-ed6c-4089-9e68-fd76cba25769","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":58,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"b7bf6f62-bb78-4ee8-b960-2b3ef3055b44","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":58,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"e8761765-3888-4bdb-9204-1e5dde9d0888","block_type":"box","text":"II-14","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7507e9c-4cd3-4631-90d3-421ccbf10c4d","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f3a21a6-b77b-4bca-a800-e55694356fff","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":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"37e0b2ca-1962-4632-bc26-90b2a8f162c6","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":59,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"d9cc2c28-3a96-4689-90bf-d9e861c9f17a","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":59,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"21ae3c5b-2e60-4cc6-a7e3-96cc568055ad","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":59,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"59e404fd-7c3d-4d35-8b4f-2d37df032b3a","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":59,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"a39d8ae8-c6f5-45ab-ac7a-d6e0335ac7ec","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":59,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"a08c2cec-76ce-4ae3-b092-9a7653cd04a5","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":59,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"0df54440-b594-4fa0-babb-0027b5a28cfa","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":59,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"7f4dde27-1601-4113-b2fb-d4e5cc26c79e","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":59,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"2ff05ac1-96cb-4e88-a48d-3ef74bc080e0","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":59,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"13e9b40a-a709-463e-9264-323022fe0128","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":59,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"c278cdb0-a4d2-495f-af3d-6e857af76f40","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":59,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"f8cc7983-e830-499c-a8e8-6728694a7735","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":59,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"a6ddaa88-2c45-4916-bbba-5476f3907616","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":59,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"9725e76a-866d-4dc7-a551-fb71048c15ec","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":59,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"9e46b43b-47f1-4520-9f8a-b24913e86c19","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":59,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"c91963b9-bab0-45dc-9c97-abdf40f61394","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":59,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"c17a7024-b71c-40a0-9561-a2e78f0ed759","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":59,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"8f259790-d9e6-41cd-93a4-831efd2b7ab3","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":59,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"391e0a0e-0dd8-4120-90f8-b58d69dbe72a","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":59,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"fe9a47bb-7fd0-456c-8075-d777075c313e","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":59,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"3ef48a8e-fe67-49ab-8237-407dcafe8ffe","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":59,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"f6593b8e-c342-4e0e-bbf7-d908fee82b84","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":59,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"f63db0ab-84ea-4f2a-b0cc-47835621a486","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":59,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"d4c612be-a5da-4878-ada5-2bdf5cb7e270","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":59,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"16c64d1f-52fc-4695-a2cd-022f38e78a5d","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":59,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"aa719d79-30a4-47e8-bceb-428b8ad40980","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":59,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"bafd92f9-3739-4e33-8df2-e57e8e4282c6","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":59,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"61f47c85-fd70-4385-9258-d175118db699","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":59,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"c0b4656f-8a35-449b-b942-88040958b0fd","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":59,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"0778cfb9-32fb-4b34-a7b8-21a626e20f29","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":59,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"6b6f579f-bf19-4f48-8485-71ab932554a0","block_type":"box","text":"collateral received under such contracts.","page_number":59,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"9356cc4b-f75c-43cb-88ea-eac18eee3b9b","block_type":"box","text":"Risk Factors in Derivatives.","page_number":59,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"0025862b-5234-48f3-ba57-b49fbdfc859d","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":59,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"7f5482c0-da04-4d31-a0f7-4f3223341d1e","block_type":"box","text":"Correlation Risk","page_number":59,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"24fed2c5-855d-45ca-84b6-f7f3041825f8","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":59,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"8ade5db5-118e-4f34-94bd-243dbaff3ec4","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":59,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"57ef88e1-c4e8-4665-aff3-8652f66e4555","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":59,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"340fdafb-0afd-4d5f-84dc-8ee2dad0995a","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":59,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"bf9c0fe8-e69f-4064-8b15-d6b14202156e","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":59,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"4ebd8e47-5341-466e-8357-a08a1b85eebf","block_type":"box","text":"Counterpar ty Risk","page_number":59,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"f5a47891-8f8f-45d6-9921-dba5ea713466","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":59,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"97426c6d-76a3-42a5-bd09-df3735edf082","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":59,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"0f074440-fc23-4611-b94e-02d34d575d2d","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":59,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"7c73b1ab-39d2-4885-ac38-6d50212f744a","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":59,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"b64924c1-21e6-40d7-838c-32d0c553bb62","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":59,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"a0e4a731-ff3f-45f2-88bc-627b1a3adcee","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":59,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"f7dafc33-9cd5-42e6-a578-9a87c11302e8","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":59,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"b6fa742f-dafb-4689-9d72-160869cadb5f","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":59,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"39324e69-a447-4ce3-8346-52a842623f06","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":59,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"e0416e8a-2fdc-4056-a970-32f3cdd2a72e","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":59,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"2e4366a5-c0e4-43d3-b647-612e10956d3b","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":59,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"670be7dd-8567-4270-9407-e27ff1bc361c","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":59,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"9de81676-698b-4000-a4f7-b511e9d0867f","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":59,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"e979aca4-98ea-4ab0-a7ff-78a51fad9699","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":59,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"ec67cb13-b2c9-412b-b569-5599132326d8","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":59,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"b0c0c176-627a-4c7d-a584-92052f273cf6","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":59,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"c39d571c-660d-4982-bfd0-e84140d22dea","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":59,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"6332cf62-e1f5-43a5-b25d-795e850bd81e","block_type":"box","text":"II-15","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"43a25670-67a7-4229-9fc3-e96b1dd235bd","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2cce9fe-1f3c-446b-873b-8ed52069f2d0","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":60,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"5523d90a-1c84-4a5a-9930-8ba5ea45eeb1","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":60,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"c0307701-b9be-4e9c-a0ee-ad4e0af98058","block_type":"box","text":"by the clearing member.","page_number":60,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"efb9d4b7-c8b3-4650-a3ea-bb4b8392e9d1","block_type":"box","text":"Credit Risk","page_number":60,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"8315cb6b-573b-48f1-b544-f68bf96f9d40","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":60,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"be8b50ee-80e3-4eda-a3b2-a988eda99889","block_type":"box","text":"honor its financial obligations.","page_number":60,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"3ffb13ad-e892-4d05-8b88-fbbc967339ae","block_type":"box","text":"Currency Risk","page_number":60,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"1d3e0ae5-2e6c-4bd6-95e5-1d645e862dd9","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":60,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"5452e327-4955-4a7d-bb9f-7ee648e2d5a9","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":60,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"cea15002-f975-4528-bfd6-5c7c02fce3a3","block_type":"box","text":"Illiquidity Risk","page_number":60,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"bdc77d33-e7d0-447c-8147-b15cac9459e4","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":60,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"6972cc15-570a-4ad3-818e-3ef69ec524b6","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":60,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"ac888fbd-42d3-4a54-8e51-965251d1b50f","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":60,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"e6a09931-5143-4041-ac93-2cee046367ad","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":60,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"bfb7e772-67fb-44c1-9395-26691e739565","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":60,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"7852eea3-12f5-41ef-ad50-8f77618fc32a","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":60,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"9a72fcc3-028b-4610-a213-ccf9a0885e46","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":60,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"84c51e99-e30a-4778-871e-ecaa6edcb183","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":60,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"01e6b044-f3c5-4b0c-bdcf-1c8956457448","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":60,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"22c3a320-d420-46fc-be1b-4a21099b2fb9","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":60,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"e1a7c2c8-1813-489e-8c9e-681cd78b9ac4","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":60,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"e2df6aa9-e9dc-4c43-8bb3-6e13ecc47c85","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":60,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"24af6a12-70c7-4c9f-bcb7-08aad3002c43","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":60,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"0e4f5dc9-cad7-4208-8bb8-04c89b13ecf3","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":60,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"09e6a58f-bd8a-44fc-bc2b-199a65cd608e","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":60,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d0140ae6-cd91-403c-b2a0-3577547c764b","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":60,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"98b274cb-50eb-4926-bd08-71b9c0e20798","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":60,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"c2e268a7-1645-4e36-af83-eb3a665beed0","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":60,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"8cd0a0ce-df67-455a-b186-cb2213392f4f","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":60,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"a59ba51d-4c2c-49c2-8b62-d512c4752a21","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":60,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"9a9c1c6e-41fa-4f39-b5cc-1509303595c1","block_type":"box","text":"may be disadvantageous to do so.","page_number":60,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"b465fb98-997b-49f9-94fb-e399e85f3838","block_type":"box","text":"Index Risk","page_number":60,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"8bd68eb6-a44b-46f6-81c4-dad7833afd02","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":60,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"ade0b2ed-2414-4b47-8438-a93d7e5e4fca","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":60,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"a178b7d5-664d-416f-8f3e-89462de9bbe4","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":60,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"744e15b4-c5f6-4bb0-bd3e-48af448b73d6","block_type":"box","text":"Legal Risk","page_number":60,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"c1e164c7-878a-4508-9d41-a109f2c2d058","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":60,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"33d6c16d-3a79-483e-82b8-efd99c15d70d","block_type":"box","text":"or enforceability of a contract.","page_number":60,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"1684806e-dd07-43cf-bfde-ead0da24d9b9","block_type":"box","text":"Leverage Risk","page_number":60,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"5b7f2427-c530-4494-920e-ac23e051bbbd","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":60,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"50301783-40fc-4f7a-a84f-abb09fa01270","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":60,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"17e339a4-2710-4933-af42-6442419ca583","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":60,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"15f7f0a0-07bb-4fb3-b389-01c46f8e396a","block_type":"box","text":"Market Risk","page_number":60,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"506ff4a4-72e9-4cc9-bedb-0f06ca27dd14","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":60,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"f7753981-84a1-4ad4-880f-89f99e982c68","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":60,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"aafc8e44-db80-42ca-b13c-2fd4e4bd82f7","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":60,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"da8a47fb-bed9-494c-959f-a6ec030bd75e","block_type":"box","text":"affected.","page_number":60,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"80cbb30f-e63f-4db0-b696-be1a1dfecae3","block_type":"box","text":"Operational Risk","page_number":60,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"e12da347-02dd-41c0-b7e9-6fe1ac717e59","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":60,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"93fceac6-b11b-4a62-a35b-7b617c03794b","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":60,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"5d8b6d5e-45a9-4f86-8225-73d8a301edd8","block_type":"box","text":"Valuation Risk","page_number":60,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"d8e98949-22f4-40c8-b177-828032244b00","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":60,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"a87bf4e6-7f39-4688-9ed3-68e8f4f517d4","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":60,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"08f74e24-6cbd-4100-bb8c-2cc973d0fad7","block_type":"box","text":"complex instruments or quote prices for them.","page_number":60,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"06641c2f-cfa8-481c-a14c-bdc191ea14dd","block_type":"box","text":"Volatility Risk","page_number":60,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"751a15d0-825b-48f3-a302-14e93e6ae5d6","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":60,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"0c1be9c9-aec7-43ab-859d-c150e3a61b8f","block_type":"box","text":"Types of Derivatives Transactions.","page_number":60,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"9d1bad8f-a922-4533-9aed-3b173506d618","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":60,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"6e21e4cd-7413-4c7a-9755-36bad607823a","block_type":"box","text":"including the following:","page_number":60,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"3eb0fd8e-050a-44cb-b46e-56dccf70c091","block_type":"box","text":"Futures.","page_number":60,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"eabc07d4-3ffa-4687-9c2f-56c8b5010e7c","block_type":"box","text":"II-16","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a436e5f1-fe9f-480c-a430-d980342b4d62","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a664815-02a8-43db-adad-921c54f9a335","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":61,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"6dd505d3-6a62-47f1-b2d1-831fe1396445","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":61,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c0ce5bdd-911d-4749-a568-1634a061f191","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":61,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"4e5668c6-0793-4f2e-bd4d-6aa847eb8371","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":61,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"cbcbca63-2a95-4036-884e-d73e987ac53a","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":61,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"30b680a7-ed51-4f0a-a437-10b2ebfb1d5c","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":61,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"2f14b125-46f4-437f-b630-4aa3c5419a01","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":61,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"decddcf2-8ed8-4bef-a4de-925a43542509","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":61,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"3c716ff2-273b-44b7-a9da-1ae779983dee","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":61,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"f18e5a3b-7351-4499-8e99-bfaf9db20efa","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":61,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"7375ed8a-4c28-4f04-baad-93bab361504d","block_type":"box","text":"of the futures contract.","page_number":61,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"369d5db2-bb97-4ae1-b485-05c08a41b12d","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":61,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"3b1d2141-8e18-4c40-92be-041882e95e2f","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":61,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"28ee9acc-bf9d-4595-a88a-ce731c55d1a4","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":61,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"97e9cf12-0e98-427e-8df0-31e4f18d8550","block_type":"box","text":"relating to the futures position.","page_number":61,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"7e4e2665-51ea-4db7-8f7e-457a0b3099a3","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":61,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"46ec980f-6d79-4269-b93e-ad95c0efa230","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":61,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"4d772bd4-772b-47b8-9d65-6954929e6555","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":61,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"0f163e16-e998-42b5-bb8b-4111c02ca63e","block_type":"box","text":"Regulations” above.","page_number":61,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"7a9fa0f0-4be4-460e-b5ce-2fbe1dfb85b5","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":61,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"86bc16d3-e0df-492c-9f20-f4e88cfe9d22","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":61,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"75a20e92-6b1e-4604-839f-76249ef2a24d","block_type":"box","text":"(","page_number":61,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"1acb631a-63c9-4173-8b28-5e6e44992be9","block_type":"box","text":"i.e.","page_number":61,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"fc1c8124-df0f-4677-ad22-bd3db4e1ea2d","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":61,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"12c66199-26d7-4867-997b-2383e24c5530","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":61,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"5bcf5a89-4ec8-4bba-a7f9-0b27f96b3568","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":61,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"5ea91c68-fac1-4bb8-8d58-088810c67e89","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":61,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"bbc07cb9-318f-4abd-b594-03c0195d2029","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":61,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"90645a21-41ca-4aec-8e34-6ba237027f81","block_type":"box","text":"Fund intends to purchase.","page_number":61,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"5d1ea9e4-53e9-472c-bca4-452554910203","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":61,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"eb4a417b-042c-402b-ad44-a40765174957","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":61,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"1bbd9da9-1c81-4b85-a4b8-e90e285cd995","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":61,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"7b29405a-ca85-48a5-9782-fed5f8870f5c","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":61,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"56cb1129-30a5-4071-96b2-1cfca1f8c01f","block_type":"box","text":"illiquidity.","page_number":61,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"bccc1163-11d6-4984-a536-110f3a18033b","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":61,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"8861f4ba-3fbf-4c34-96cb-76fb312797bb","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":61,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"75826134-473c-4917-bc28-1b63f47a881d","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":61,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"238c6f0f-ee31-48de-875f-ee91096046c8","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":61,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"89bbec5d-8c92-4554-a3ed-a75b980c1dce","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":61,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"31dfb4a6-d7e1-41e7-a22b-2db7503ef2a1","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":61,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"8af20125-792b-4e46-8564-46dd0852fbba","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":61,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"19337e32-6176-45b4-863c-1803d6b03a6b","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":61,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"4d6bfdf3-df61-4722-a3da-a98f62852cb0","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":61,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"c26b789c-a873-4f9a-9c6d-9c5730cef5b2","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":61,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"98dd91a0-7ab1-41ca-a920-722244fffc72","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":61,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"7d710ff5-d86f-4830-8b1e-1f8bcd3a631e","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":61,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"08e2b6e8-4446-4422-b644-84ecf0a0ab8f","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":61,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"8b2fd7fe-c034-4a4b-836e-6db426a04276","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":61,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"dd43c67d-2c78-4b01-b367-6b9b294a718d","block_type":"box","text":"Swap Agreements.","page_number":61,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"2977e0d2-406d-4bb3-8147-ec37d87ead64","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":61,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"2a85ec9f-cd8b-41b3-9bd3-f98a206d15e9","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":61,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"bdf90d18-1cde-433b-a44d-b2d0e9b4def2","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":61,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"646ef073-a55c-40d3-bfc2-2ce650d3f165","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":61,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"b9d0d29e-bcba-4170-9c65-2687179456c1","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":61,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"a134baee-d16a-4d98-b759-9afff0259732","block_type":"box","text":"a “notional amount,”","page_number":61,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"66d7cd77-240f-4e23-aaee-cd3f7e4f192a","block_type":"box","text":"e.g.","page_number":61,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"62cebd8f-f001-4843-a862-dc61965c3fad","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":61,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"149c28e5-1ff9-4398-a3c6-c63bf05f997a","block_type":"box","text":"II-17","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4e4dd509-338d-4777-968b-2ff63e4d737e","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6464e720-b14b-482e-95ec-5cd71eac374b","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":62,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"be15981a-7024-4331-94d7-7ffa0f54bd65","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":62,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"bcbb9410-f032-433a-8db8-78815c427f6a","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":62,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3b1f3715-b773-463d-8e72-0e10550f5535","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":62,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"476488e1-c402-41f2-b2d3-dd3a655545e4","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":62,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"b3e90f8e-def3-4a6e-81bf-9120555f475a","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":62,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"3d4cd42e-74ef-4660-8a9e-72964ee4a804","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":62,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"92df1dc6-de94-43b5-972f-c3cc3c05c59d","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":62,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"b32d2e81-47df-4ad1-8569-ea4dded0731e","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":62,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"f409fc0e-6057-42ed-b653-e34a35220304","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":62,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"2b59f3c9-9be0-44e8-90d8-84878570d50f","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":62,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"79aac8f8-098e-4796-a7cf-7d01a3fd4c2f","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":62,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"835ac59f-e855-4936-8c78-0ece53788fb4","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":62,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"364f941f-95a2-4bea-b413-0a3665f533e6","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":62,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"5d5cd6b0-cfb4-48dd-af47-87522b12aba0","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":62,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"449e375f-b53d-4b81-b5dd-643c1f829dbb","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":62,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"624e2eff-0b1b-457b-bf6a-3cfd97d0e099","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":62,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"19b44d73-2fcf-4f63-b41e-a6d62342e71b","block_type":"box","text":"index CDS.","page_number":62,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"ead004f0-99d4-451e-9ea6-d596a96518c2","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":62,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"abf9f0e5-2067-4f9f-8b2c-7b103228fa35","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":62,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"5d506647-3122-41f5-ac0a-16c4063193ca","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":62,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"8877f331-26dd-43b1-88c2-144e9bc18dab","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":62,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"7c0b540c-d497-49eb-ade7-6882f72efb2e","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":62,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"bc9e4a4d-9f09-424c-af0e-637087d1d622","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":62,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"1cec1f51-b494-4dab-9f36-161cf707d158","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":62,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"bc74b491-842a-4271-af34-dd856e7b175d","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":62,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"a2f32fda-628b-4d38-ab86-5089309946bf","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":62,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"3daed4c3-db64-4a81-931a-3836973c6b26","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":62,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"a68a2be5-eab2-4213-94f8-aa60e260e6f3","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":62,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"3767bc6e-6872-445f-8595-c2d24b37130f","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":62,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"6761fba9-3a64-4f3c-abe4-ecefb8a0f262","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":62,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"0fe49be8-3b63-40f3-a0e3-cd34ee8d452b","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":62,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"90250ec3-1879-40fb-9cea-dfd2bfbb4a87","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":62,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"250e1db7-1806-4793-9597-f756d5a5d298","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":62,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"da83b834-8501-489a-9e41-1cc412eee166","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":62,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"3565f6d4-c4cc-43df-8209-74382980f0da","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":62,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"1f98a96c-883b-4923-8bd6-4065e86bb5e9","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":62,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"6aa1b934-e6cd-4355-a1bf-2ff3d784a72e","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":62,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"a6a8f395-b5f0-4e75-9b5f-4a3a3be9fa18","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":62,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"e41c62e9-a9fe-42a4-99bb-0f8801289323","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":62,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"8ca27d56-f3b5-4f1b-9748-3851fabe6d9d","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":62,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"d75fa9da-6f2a-4b89-a15c-5c91b720120a","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":62,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"5752a1d8-f993-40c7-9b76-36cfdfa62be2","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":62,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"0357b106-e8e5-43ca-83d8-33aa326ad1b9","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":62,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"b3014fac-9376-46fd-b24c-413adda2eacf","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":62,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"306f2882-980c-4ca2-9370-39f50cbba0f7","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":62,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"52254a75-c107-4b89-9b60-a2a5200cf099","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":62,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"e950a3ba-091d-4fe0-9f32-151a5ad636d1","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":62,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"b38aa959-3534-4ee2-a5b9-7b9d4e547d22","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":62,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"234528e0-ea37-405a-b196-95949cb480df","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":62,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"864589f5-4205-4ad3-b476-f9ab49988ebe","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":62,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"ae3f2359-4ac6-4609-a796-53dec603a160","block_type":"box","text":"conditions.","page_number":62,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"6ff3b983-0fbb-43fa-afeb-b5b0a03cec6d","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":62,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"07ff7f6a-fba2-43e3-b7b4-31b6bcb1cf7e","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":62,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"0757c8cc-aa81-4637-ae83-03a8a4bd8338","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":62,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"4d876f51-d95e-4e43-be84-260e34c2b4db","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":62,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"2b3eaf01-ca85-4ab5-b5a0-419e5837b3bb","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":62,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"34d771fc-633e-44f8-bb89-da23ce7240f7","block_type":"box","text":"II-18","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2884bbf1-d005-4af3-8a52-0a51f42f8f2e","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0115742-61cb-4589-ba6a-1e924f9ee6e3","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":63,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"0e8755c9-f3e8-4af5-aadc-a0fbb65ee76b","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":63,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"22c6fea8-73a9-4538-b430-b1e51ec211b7","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":63,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"0f8765cb-cb38-4757-8a3f-f626d74cc772","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":63,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"abc8b624-34a1-474b-b19b-88af7038ce1c","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":63,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"478a7b75-2730-4d9d-b4c7-6ef897acc24c","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":63,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"ebb4c1f9-1c2d-4d49-99df-dff570105450","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":63,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"278b615a-b3f0-4232-a5c3-621a8f416dfa","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":63,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"0cb12ed0-2afb-4abf-bb67-2496c36e7d1f","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":63,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"813cb460-9885-4303-9284-877d51c43881","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":63,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"a336e713-a571-4fb0-a768-cc967a3a9d97","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":63,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"3e0fc5f9-cf33-4ba7-8ec3-c690729030b8","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":63,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"fe1d0924-fb07-4d1a-ac93-6d1ec398f3ca","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":63,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"794bc517-3fa6-41c1-b68a-b51560075487","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":63,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"4134bd39-ad98-4e63-87e7-ef78b2c234ff","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"9eefb917-da74-4217-9256-b9d523325d19","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":63,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"cd0879b2-2fb7-43bf-888a-932eb0972f1a","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":63,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"07e82302-ffac-4ac5-9c13-9cba0ffe5c85","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":63,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"0917f39a-d3ba-4ced-9e2e-9789632596d8","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":63,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"fb0cb11d-433b-478e-934d-10435d9683b4","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":63,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"aa757f23-4881-4b4a-9056-a8071e07928b","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":63,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"7f6a9f78-66bc-4603-8640-4f44859f2635","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":63,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"d5e8ccb8-7fbf-4f15-94c0-a1a298c13323","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":63,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"c45c323e-18de-43e6-b150-d0e4a477fb70","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":63,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"4a810296-7894-454d-bb39-006ca97ca737","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":63,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"daeb4b72-d239-4b72-be32-25be8128f5e3","block_type":"box","text":"cleared interest rate swaps.","page_number":63,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"9dba1e17-e258-4f0a-bfe0-3a16cd36d6b4","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":63,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"3b10cd0f-e62f-4055-9f8c-40bc2ac92db1","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":63,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"828cf155-ed1f-4239-bd0f-5c0b257737d7","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":63,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"4b29433a-0aed-4fcd-93ce-95f5796fc2ba","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":63,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"dcf08868-e57e-4972-bd24-bfac5a7bcea5","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":63,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"e5819017-05b5-4876-a1c3-b364ed02b224","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":63,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"8c0de81f-545a-4a72-8bda-9b23337a6a77","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":63,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"75cf5eea-00f1-4c36-b334-21274c34de8c","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":63,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"cd4cbf2c-108d-40c0-b5ee-7d2ad6815aae","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":63,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"2754ae60-8679-4332-8005-027a32ef6c3b","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":63,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"1d09138d-98b6-4389-b353-6aa04dbe4496","block_type":"box","text":"or variable interest rate, index or asset.","page_number":63,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"fe4e2a79-c5b6-4c71-b8d8-54756dc7665d","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":63,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"c37f129d-35bc-431f-830f-fc05cb4b0331","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":63,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"1fc43106-3a4e-45f3-8b36-40a0c56476f2","block_type":"box","text":"such interest rate floor.","page_number":63,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"c606e734-0f4d-42c9-a027-13ea2b68d18f","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":63,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"66a1e627-7efa-4141-97df-72eb37967f20","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":63,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"5c4f452c-3f02-4fc5-babb-97b3618ab05a","block_type":"box","text":"such interest rate cap.","page_number":63,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"91568016-e337-4f1a-b033-1e395a90672c","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":63,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"a75e278b-ef81-4a55-a98a-71fa63020e79","block_type":"box","text":"commitments to pay or receive interest,","page_number":63,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"9878805c-6c7e-474a-9ef1-f967a31059d1","block_type":"box","text":"e.g.","page_number":63,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"a781c3e8-273c-4759-9722-3e26bee30a05","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":63,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"1ba8e382-a97f-42b7-be71-15a23bcb6152","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":63,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"be67c9a9-690a-4375-895a-d2004bd9ebfb","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":63,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"6aa38bad-959b-4884-a94d-203d48c028c7","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":63,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"703dbeef-4ad3-4ed0-a8e8-3b415f81ee35","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":63,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"8141ede9-e657-450b-8540-21319bbd3c21","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":63,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"f5b8f9a5-543a-4ea0-822b-a925788c4ad0","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":63,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"2b8dcff2-f675-4027-bf67-9a59feae14ce","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":63,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"f28bda84-428a-4009-815b-4bd4de30f1d5","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":63,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"c10ff90e-3c94-4213-ab35-4579d3949c86","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":63,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"c7c7c55f-775a-495b-9fa2-731c9238e94c","block_type":"box","text":"II-19","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acff05f6-7469-4dc3-8404-58bc6ec54c43","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"982b48ee-42c0-42bf-8ca9-577ce19e4d05","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":64,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"dc89d01e-a7e8-4bbc-aef8-66189e70e99d","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":64,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"e1918b1f-98b4-4749-b630-7e10bc86185c","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":64,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"def5dbe7-d0a1-4e39-9ff2-d2605ac8a4e5","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":64,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"091eead5-7c5c-4710-85c7-8ac34cc2c6bd","block_type":"box","text":"Total Return Swaps.","page_number":64,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"bdae0054-d402-4377-ba9b-3be767f5499c","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":64,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"111c6d64-80fb-4b09-a953-762bbb746b0a","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":64,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"494c2387-bd41-494d-b49e-04f66179f854","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":64,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"ee76d160-6645-474a-a203-93805731e3b0","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":64,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"fef6308b-e852-4875-b7b5-c57a50483fcc","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":64,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"70dc9a7e-3fd7-4429-8141-03b637830f09","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":64,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"d0b31ae9-8386-4a21-83c0-68aa17e40601","block_type":"box","text":"“contracts for difference.”","page_number":64,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"00a7914f-f1ec-4644-8f00-7a6e41237ef5","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":64,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"cd90c21b-c237-4b5e-919d-ea6d031c3c64","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":64,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"6502dce6-cc26-494a-8dd5-ab9c38da6858","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":64,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"cf51d67a-e7c4-4434-834f-9105cd3bc84a","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":64,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"82291174-138f-4ba7-8177-570bcdf64767","block_type":"box","text":"the notional amount of the swap.","page_number":64,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"dff19100-e97e-4834-a5d9-d8097d124fc8","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":64,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"e3a97f03-f8a6-4ed5-be98-f8d3e6b17fa8","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":64,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"3aa27979-3386-466a-9dd7-a128bb46086b","block_type":"box","text":"Options.","page_number":64,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"b4b66072-078e-4138-8b1c-3f3577b4d5a2","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":64,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"e91c9cce-c972-42c2-9f6b-7f3d27ec10b6","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":64,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"357e9ece-a2f3-4d8a-abdf-ab7c18015268","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":64,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"0fa80f19-5bb1-4d91-8397-40b9fec7f067","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":64,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"5cdb71fd-774d-408a-963d-fe8f4e2f318e","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":64,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"eff78b70-d61a-4ed4-9900-aa2a8ff2b3e4","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":64,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"00f68f40-a14d-4c61-b285-641058cc54a7","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":64,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"1c2e5dcb-2455-461b-bb8f-0439a308c7b8","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":64,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"038dd563-fe05-4301-b514-b09d94ae8094","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":64,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"36a39d88-1742-41a3-89a3-7e8cc9a15a68","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":64,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"e968df7c-5701-4867-bb53-d9801e65b904","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":64,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"c9673ff9-ee44-48ad-8df1-2e0f3cea1f48","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":64,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"6c4630dc-d50e-48a6-a580-69286f2d6ef5","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":64,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"efb3f2c3-e479-4805-a398-68e7f2e90460","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":64,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"8d3f19d2-e238-4c02-b34c-28a3152e11b5","block_type":"box","text":"OTC markets.","page_number":64,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"48e701d6-1f0a-49ba-8fba-a19d06f022be","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":64,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"33ff26cf-329f-4a7d-aea6-d16eda6ce380","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":64,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"9511ef58-3a89-4148-ade5-e3271e99e004","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":64,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"a79fbccd-f25b-40a6-9a93-749d1b3acdbd","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":64,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"24265c56-dbdf-4ca3-84ca-9bfe6807e38d","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":64,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"d6433aa6-c93c-4475-b9d1-cb8a625cde23","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":64,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"ffe110a5-c28f-4ac2-8cb4-1711650d7d5d","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":64,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"80a9b690-b25f-43d3-89f4-9da269c06a6f","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":64,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"04c2f56f-671e-48e2-89b7-164933a4ea93","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":64,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"ca280904-ad4c-4ff8-942c-02bdce5e0a60","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":64,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"e80d9466-ac15-48c4-bf93-e36f641096a4","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":64,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"a1b65f5c-b2e7-47ed-a2be-097d7c61afae","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":64,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"7654a097-a8d4-4199-be53-8522df59d5ad","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":64,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"2d03d822-64af-4cde-900c-e5a6ca28ce93","block_type":"box","text":"terms.","page_number":64,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"b00fe45f-0738-45d2-866a-473e481b7fb5","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":64,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"641102bc-9558-49b7-91d9-182768594547","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":64,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"9a541f18-9880-4185-a20d-bfb585123688","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":64,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"672e47c5-1912-44ca-a4d2-052529de145b","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":64,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"b9b9c7fb-a10a-4421-a2f8-0120ee9f0941","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":64,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"61547b12-8a5f-4ce2-860c-cf4a03de619e","block_type":"box","text":"II-20","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c1d21c2a-2005-4f51-8e70-28f34f80c7cd","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d1c41836-5515-4fea-a843-f7ad6a4104d0","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":65,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"3a2a942f-67fb-4c47-9026-8f416d6a7b7b","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":65,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"9450bae5-7686-4fa5-bd2e-f254e5fbf4eb","block_type":"box","text":"Call Options.","page_number":65,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"62e8c3a2-4b7d-48c9-890b-183b44409a78","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":65,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"b098beb5-55f4-4be7-8f83-4fc82ae33805","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":65,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"d3fd42dd-01b3-4b0e-8fb0-a380c44a43eb","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":65,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"a4c55f8f-31ce-4fa6-aa97-b866a7feb38e","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":65,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"e7a782c9-53cf-4c92-b8f0-1de801405acf","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":65,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"5f9ffe92-9457-437f-845c-62e4345f6fef","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":65,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"04d8f127-632e-4704-bcc8-10ca4877b97b","block_type":"box","text":"of the option.","page_number":65,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"b1a93f79-8e3c-46cf-abd3-d8a370a18574","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":65,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"c9f9069f-8c87-4291-a3e7-6649f2ed848b","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":65,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"c4c4a0ed-7f38-4fb1-a236-e4e63d0ea102","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":65,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"ee412d0d-e127-43b1-9a32-a5dc108c03a1","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":65,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"1e2206f7-8e8f-4636-81cc-d529a39b175e","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":65,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"bd958eb9-5e32-4dbc-a1a8-f60760b46b1d","block_type":"box","text":"A Fund may write (","page_number":65,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"1aac1541-618e-4ced-a75d-d6b5f238ce5f","block_type":"box","text":"i.e.","page_number":65,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"7832a174-774a-4a99-af96-8db074be7039","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":65,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"765c18a0-d8df-47de-bd4a-901af44a37fc","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":65,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0210978b-c233-45ad-95e7-734bf8675361","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":65,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"0a345cb4-5b3d-4c51-b39e-85784874209e","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":65,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f4c98ec9-a7aa-4c82-be8f-08441961a171","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":65,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"2f44c17c-cb40-46e4-a2ce-f37fc2c0fef4","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":65,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"bf7fa99e-982b-4d7c-a18f-6e0b810a4e03","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":65,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"a560bd98-130d-45c1-a4bb-f2d73854ae44","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":65,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"65a3c7bb-c2c8-4a32-aa46-8baacc1840c7","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":65,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"e816bf97-50ec-403f-8e7c-450f01be7c14","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":65,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"a864806f-fc64-41c7-be51-7e7d90caef74","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":65,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"d7096f8d-4447-4c96-ae3e-b33671abed5e","block_type":"box","text":"A Fund may write","page_number":65,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"ff808095-06a2-452f-a41b-b3b655fff321","block_type":"box","text":"(i.e.","page_number":65,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"b263d731-d319-4ecf-8609-4898b6dd116d","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":65,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"0b822ec1-b9bf-487c-b885-3088b3c05673","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":65,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"cee4e91b-62bc-4234-b8d2-b17e1693a8b5","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":65,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"be8c775c-6eaf-42d1-8bed-a86fefd4925a","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":65,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"56c31b68-5a43-4e8e-91d6-f9c1de2d7ee5","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":65,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"0652b326-faf2-4915-a9e7-8b09440dd9ea","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":65,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"006bc670-1d61-486e-b137-2c25b51a7994","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":65,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"7ee1edcf-6e39-4e6b-890f-ceca7a3b783f","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":65,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"74699398-1248-445f-99f2-9d40b559c1cd","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":65,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e6db1705-40a0-4ef7-8424-1c7599f81874","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":65,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"33b0daa1-76f2-4eb1-9159-38cc04da1066","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":65,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"05fd7ca7-cb8e-49d8-b7cc-fb2a0fde0131","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":65,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"a74e97cf-3d6a-4488-b6a6-e308458516a6","block_type":"box","text":"Put Options.","page_number":65,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"4d61fe3f-236f-4bbf-9868-8f648042f813","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":65,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"0d000445-9308-4f4f-94f2-209a6757c4fc","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":65,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"86f564bf-fe89-420a-8d19-635490d266b9","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":65,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"559f4952-a2b6-44c4-963e-c238cb9b12d7","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":65,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"1fca2912-a8a9-4b4b-b3c9-5c832aa0915f","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":65,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"439e9e61-3393-4116-bec1-e7d6f951b557","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":65,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"1a0ebeaa-4959-4128-8174-75149c24b6bf","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":65,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"c1dcabbb-e5e9-46e7-8f71-e47a7aa4c5ee","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":65,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"43fd8eb5-9b0f-4e7f-84fb-93d9d7a0f36e","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":65,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"748ec26f-0e9b-488c-9941-d3d1492bacfd","block_type":"box","text":"purchase uncovered put options.","page_number":65,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"29e836e5-5022-4ced-84c8-08348024c70a","block_type":"box","text":"A Fund also may write (","page_number":65,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"453096fd-8b7d-415c-a05f-d0c0f5fbf7f0","block_type":"box","text":"i.e.","page_number":65,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"59b37d7e-0c47-40d3-ba25-2bae69d754e3","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":65,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"98ce8857-4a76-4c7c-b3d4-936cfd897383","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":65,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"75221adc-c65d-4eb0-8638-979e6e6160e7","block_type":"box","text":"A Fund also may write (","page_number":65,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"bba5f1b6-d13d-44d4-bfb0-2f0617334b3a","block_type":"box","text":"i.e.","page_number":65,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"93844b49-0571-411b-9e6f-4abc60c87073","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":65,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"265ae31a-6e0b-4b73-bf43-76b16b967938","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":65,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"95f01d4e-efdc-4d39-bd77-41a0afa1f9e4","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":65,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"c290c82e-693a-4619-a007-bd2b1c20d86d","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":65,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"9183a9ae-069f-4939-9df0-06465515a6fe","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":65,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"85256da9-297d-4595-ae73-79b94ec2c232","block_type":"box","text":"II-21","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d517db1-9804-4a28-a8f9-6f99d22c319c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06bfb904-ee29-4491-8e6c-a3d851465b9d","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":66,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"7f7f03c7-8841-406e-95a6-6bb6a533f721","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":66,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"274aafea-ce73-48ff-b512-89a8daffe0fa","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":66,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"e4e646f6-e7ce-4e3d-b99a-22146ccd673f","block_type":"box","text":"the exercise price.","page_number":66,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"07821660-157a-495f-bb8e-990594f9b3ef","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":66,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"b7c5eda3-e5d7-4688-9443-5ef52b97d41b","block_type":"box","text":"The following information relates","page_number":66,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"dfc82979-8840-424f-847e-cd4156dc9f7f","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":66,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"8e61e6af-8710-4869-83da-4d89e9d52fee","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":66,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"c715e222-822c-437f-aed8-329f2772bab1","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":66,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"b05c1c4d-4e75-467a-b301-c155a6cd0c70","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":66,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"8fb5a762-7391-42bb-afc3-ec5307b4e08d","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":66,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"9cf70718-0be9-42ed-84ed-6a7751acc1fa","block_type":"box","text":"market in order to maintain its “cover.”","page_number":66,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"9fd8973f-f329-4a50-b217-4e3612180347","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":66,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"88a1c5e3-a90c-4043-9d3a-d770e7d6d788","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":66,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"3ac6eb67-903d-401f-a5b5-4d2a675f02f6","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":66,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"1f87c998-96cd-41cf-9dfc-dddd78ca19a3","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":66,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"bd790d05-2f66-45d5-b3f0-5daa15811227","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":66,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"201b2c81-f6b7-4365-bc0e-c809e8421cff","block_type":"box","text":"and incur transaction costs.","page_number":66,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"e6073c4b-34e3-48fc-a7f0-2eb3aebd4b0b","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":66,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"23dd125e-6b72-4cbd-a72d-5d1cc3ebdc70","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":66,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"9ee686f4-4f6a-4ded-8734-4ed49af99f49","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":66,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"237a95dc-f5a4-498e-a5f9-ff9c50abc9e1","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":66,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"ee81a84d-1b97-42e7-9925-4923a0698938","block_type":"box","text":"i.e.","page_number":66,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"d6392f1b-34a6-42d6-9832-72826c0bea74","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":66,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"48c56150-856e-446a-9fe8-2d11d890be35","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":66,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"2e4d7899-d7d6-4f3f-8dbe-536856ba422b","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":66,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"c3a38ee4-8e4b-4b6c-a339-65123b664648","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":66,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"254d709b-0473-4ea5-b13c-bb5f16cd106f","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":66,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"746a9560-753c-4f84-9d09-d9da8c8f0b93","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":66,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"2b08d323-6f9a-4023-80bb-5e90482f4814","block_type":"box","text":"required, to be cleared.","page_number":66,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"725bb219-f518-4549-9c3f-6d11e9c74d1f","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":66,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"8cc83b54-bb46-4f58-b292-c4ce1b85d0d5","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":66,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"1f03713d-9942-4897-a40d-5928b73ef149","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":66,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"a56c40e4-ba8b-4440-82e2-96ad05b7df62","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":66,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"0de5d9e0-fbc5-4324-b5af-97b042831306","block_type":"box","text":"Derivatives” above.","page_number":66,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"978c74ba-91a0-42d2-a754-5c94fd25d5b9","block_type":"box","text":"FLEX Options.","page_number":66,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"37e70a9b-eaab-458a-aa22-2a4064108204","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":66,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"edfc8f1b-3f4f-45e2-bab2-4b6f7d925c68","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":66,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"b9f0473e-fd81-40ad-94f0-0337b010dfb6","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":66,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"84cb48c7-2128-4a78-92b8-73ff698ff9de","block_type":"box","text":"exercise prices, exercise styles (","page_number":66,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"0250bdee-7b4e-43da-bcf8-b983a8946c21","block_type":"box","text":"i.e.","page_number":66,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"7041b34f-f1bd-4cf4-a818-15c99bed0988","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":66,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"6d6af33f-cfb6-427e-aaae-acecd0495dd5","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":66,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"c10d78d0-c9ca-47ac-8e68-c2fd815487c8","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":66,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"82439197-b4fd-41d7-a9c8-a3194453c156","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":66,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"32734419-daf1-4725-a9ab-a691cc8936ed","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":66,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"dab4bcc8-1d31-45bb-ae4b-77d66827704c","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":66,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"f653763c-6d57-4173-93aa-d867cc693f11","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":66,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"269d467b-9210-44fd-81a8-ccf26ed76bbe","block_type":"box","text":"FLEX Option’s expiration date.","page_number":66,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"bbdca15a-cf46-43ea-b28d-fe414a4785a4","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":66,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"5ffa5cba-e2eb-4999-bb4a-24fb6dbc8596","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":66,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"8d36cd79-fafe-41f3-bfaa-52b03aa5ee3a","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":66,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"0039f0aa-b0f6-44cf-8fa4-d4b586318fde","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":66,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"6fb3f4c9-a622-4369-851c-5aa685766d7a","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":66,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"13c9f7f9-8025-4107-aac6-8e5c052d8c32","block_type":"box","text":"FLEX Options contracts.","page_number":66,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"03aa4413-8587-4559-875f-afbbd4c3c5d7","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":66,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"dd8bdc0e-98f4-4baa-8900-bfc86144fc6b","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":66,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"b8963d2e-6fa5-42ca-bf41-bada48afd7fa","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":66,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"84a203cc-23d1-4136-8bc7-39ce0aa76d6c","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":66,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"6bf56aaa-542c-4a33-82c0-c678b757f350","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":66,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"65700776-329c-43f5-8bca-bc1e4e2ee91c","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":66,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"c524cede-5522-4b61-bfdb-cf250a1d25c7","block_type":"box","text":"II-22","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdde5b0f-5226-480b-a4fe-8a8691cdd2c3","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61c02b2f-4dd4-4d86-ae3c-e3c1fc9d0803","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":67,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"9234ebf5-76a4-4241-8817-b480ea4f4f65","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":67,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"6900c8dc-aa52-4c86-9347-88d634191c6c","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":67,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"5e04f5d0-5286-4844-9f6c-b3c01f493b78","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":67,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"e67a531d-89bb-4185-9d8f-4ada2403060a","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":67,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"bbc302bb-7e35-431d-8c4c-009b94d3f2d6","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":67,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"0d4e1604-3b67-4271-9fad-be2b1b332a56","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":67,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"6e9384cb-bfbc-408d-9844-54ac35ca0e7d","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":67,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"c105e57f-8a71-463b-9d19-eab7c5db9f26","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":67,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"aaabbc84-185a-480d-82b0-3602f91e5030","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":67,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"efaddfe9-c419-4a71-ad35-9a89a86c5717","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":67,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"25776459-1e13-4638-84bb-969dfd131dda","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":67,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"2d0bac58-0a2a-4e7e-a93b-27b3e7f07526","block_type":"box","text":"expire unexercised have no value.","page_number":67,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"f83323a2-c686-416a-b84e-5e6d6550b3bf","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":67,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"5f58a127-0cee-494a-ae79-1cc901163c42","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":67,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"c3290040-e92d-4f5c-9ff0-1ad08e8b143b","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":67,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"3b79ed9e-c91a-40f0-bcac-b3c8aa56ddb9","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":67,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"90eb8614-397f-4c75-8a29-bed564c74729","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":67,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"be1d03bc-1fda-496c-9287-6b62b2948acb","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":67,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"fea3e551-7591-4e33-bc02-2a62cee2ed0c","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":67,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"404b6f17-c865-4469-8f01-744a2b78098d","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":67,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"f84d52ff-83af-4be7-93b0-415cd1e85dd2","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":67,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"d042522d-b9c0-4794-b5cf-c421d8a1192a","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":67,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"1671b4ab-a15c-4c62-b1c9-e1b41ae29899","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":67,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"231b5038-a206-460f-840a-9945d3ba5463","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":67,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"4be21b7a-0c15-40ab-8c1d-6dce8b439159","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":67,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"7c8a82ef-ad1f-42a0-b914-73b7f9a98dee","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":67,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"ab1f5d20-dca9-4317-9d41-cb538913eb75","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":67,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"fd5372ff-d606-42a7-bbbb-3c252a634f65","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":67,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"82d30e7e-24dd-441a-8069-feda72d7e6d3","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":67,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"abd4c658-0633-465e-a13d-d352a8addaec","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":67,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"e22c3a27-f3b1-4f22-96e8-ec52deaea7a7","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":67,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"d9489002-e847-4831-a5ea-2f2a07817972","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":67,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"c64fd810-72c9-43be-b4aa-896eafee74cf","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":67,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"23f360f2-89a9-42b4-b414-c17160301335","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":67,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"4dbd7155-d4b4-434d-abf4-97dd604e5c42","block_type":"box","text":"Foreign Exchange Transactions.","page_number":67,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"543d0c25-79a8-4010-b1f4-eb343d1b1628","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":67,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"67115f33-d4ac-44ca-9f29-076f9ebc3a27","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":67,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"2e5e159e-46bb-4fc6-aaa0-66b6f885116f","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":67,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"056ec015-a49c-4f45-9c68-f9cd2a273803","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":67,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"74f365da-1ea8-4eca-a10c-0f38d1d9c658","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":67,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"e988440d-ab77-4c3c-b336-0aaf321f2880","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":67,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"0e1c9ca8-0475-4ba9-b3c1-bd08da5adda0","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":67,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"c95ac55b-e918-4b3f-ac59-a5c0049358bd","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":67,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"cb974351-306d-4e56-860b-339ad2b10fa9","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":67,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"7c8fd3e8-ad25-4fdf-bbcb-9b73fabe3f7c","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":67,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"fee71015-10db-4bc2-8894-74469dc04184","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":67,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"e640be75-970d-447e-a207-581c11da1550","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":67,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"b10e9a63-8932-4db2-8ede-3bea93f316bc","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":67,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"d2b8061c-9c78-4394-b20c-7a63571383ac","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":67,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"449193ef-9ccc-4d88-b09d-ef03babbadd6","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":67,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"157cc171-13f9-4748-89a3-16b0054e6e19","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":67,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"0ec9fc76-349a-4e77-9813-93c6a0cb969b","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":67,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"c45da23c-3a70-4f4b-89cd-fe2bf8f0dbaa","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":67,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"b0983822-67ef-451b-ae64-c888f7bdaf2f","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":67,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"baef0b45-e931-45df-b1c4-b9641756765b","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":67,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"2df4c002-0c9e-4957-ae46-a16a61757687","block_type":"box","text":"II-23","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7bbf6e8-e6d8-4f8b-9f3e-3c135c74354c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c67dae3-8230-4d9c-8fcb-79d334e6a86a","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":68,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"89ce8f7c-33f0-4dc8-826c-a9e8c249b168","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":68,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"0edf0190-fab3-45da-9f5e-8c7fae754465","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":68,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"9e4868d5-d45f-4394-91dd-1611ff6ebdc0","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":68,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"f82799bf-6235-4737-ad81-e631f02ef7c5","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":68,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"64b38755-d03e-4aca-8ff3-3ad3cff4082e","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":68,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"895f17b4-4089-4dd9-ba0b-d66524d2ba5e","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":68,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"db82a1e8-5ddf-419a-b8bb-cd859ef01ecc","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":68,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"293e76f4-bdb0-4efe-8fdf-888b60d2d3be","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":68,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"6d4c3a37-9338-4bd5-b5b7-491cb70a6cc5","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":68,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"bda9d3c6-f88d-40c4-bb5a-cb613d668ee5","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":68,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"3b38c2bb-5f03-4676-a32d-9a0bbbac80a6","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":68,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"e2876e40-f6cd-47a9-98dc-a5544f0fb23b","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":68,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"82eb9b82-86b1-4d33-842e-3ae74a737694","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":68,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"31aee68f-95e0-4279-bcb8-c1b92fd99071","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":68,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"caf3d0cb-605e-4663-aef9-a2c9599c7624","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":68,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"56c2acdd-c6e7-4a19-9284-7d4db128dfd7","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":68,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"5cc7cf22-8240-4784-8469-27466fa5c84e","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":68,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"eaae7cbf-6bba-4eaf-adaa-239edc85e958","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":68,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"1e4edbd7-2a5b-48b7-beac-3c41288fc53a","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":68,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"dd704217-537b-449d-b329-4e1eacb894a0","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":68,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"359e2fd0-f16b-40b1-95fc-4e70a52f5f2a","block_type":"box","text":"involved.","page_number":68,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"57e8e7c8-1a49-4a24-8694-d1577bcd3713","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":68,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"843227d6-6364-453e-948d-237529287471","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":68,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"cfbe559d-68d1-4346-b0e8-db909d2f06df","block_type":"box","text":"denominated in such currency.","page_number":68,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"ad3dfefe-8c45-479a-bf4b-c0eb0d45c3d8","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":68,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"145105cd-dd5d-41ae-84a4-bfd7f13889cc","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":68,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"98a298c7-7ba0-4a5f-8bca-83030803880c","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":68,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"47f41d60-59e9-4c09-8f7d-5fdde891267d","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":68,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"391a133d-1bbd-42f6-acd5-23e8819ff70b","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":68,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"1563ce8a-4186-4ac5-9e97-8dd90519cd2a","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":68,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"19ac3643-0d47-4cda-89f2-75c5f4997688","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":68,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"8b694b95-922b-4dab-8a2c-042e24c6da78","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":68,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"b8cea177-6988-4c62-8b2d-98c7cca8ff56","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":68,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"e617c387-0fb5-4fce-90d4-06aecd9c8b0e","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":68,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"4a2536df-b864-4bda-8511-deabb243b872","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":68,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"3a86ccd3-5981-4afe-b9c8-83bc97d5c36f","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":68,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"d4c00d63-0ad5-47ae-88d7-0aef32746a25","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":68,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"cfbac37d-22c8-40c5-952b-50c46538c832","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":68,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"408960bd-2a80-47fb-a201-05bff9f526e7","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":68,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"0b5eb0cf-e658-452c-8554-5b39a295ad22","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":68,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"5ccd3e27-242a-4f72-a321-ce907da3e8ff","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":68,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"de966e87-ba02-4615-a545-9134ab6b1853","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":68,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"189a74eb-9977-48c2-afbc-d9c181b3165c","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":68,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"7e270234-20a3-489b-b0cd-1514d860e620","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":68,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"138d43ac-0788-4178-8b7b-c99c0026af1a","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":68,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"2cf17c9a-47d1-4495-84ba-18385375ce34","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":68,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"660fc41a-cb0a-4d79-aac6-7061660e6974","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":68,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"707a7499-65e2-4b31-a1e3-dc065e9715b4","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":68,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"754aa894-a184-4cd0-a58b-e611d193e36d","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":68,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"fe6e5b2d-89f1-4dd8-a6a0-17af9819a5dd","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":68,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"7f0216e8-7514-4d6c-83f6-c629dc167f3e","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":68,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"ed986dfd-7c60-4137-ae48-517ef604a055","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":68,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"c1d58058-d64e-4095-88ad-43fe5cac1789","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":68,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"192383a2-8373-4559-bdce-bccf20507540","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":68,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"39c1fe01-e907-4723-8f00-fd82823d04e3","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":68,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"93849b10-3132-4616-a62d-238e93596c96","block_type":"box","text":"II-24","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c1f6e86-5731-4293-866a-626fb671f539","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b059acc-3385-4773-8797-15707fe64fcc","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":69,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"a9c45ace-587c-4897-a2cb-5c0689a9a1e0","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":69,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"6a2c9860-0140-4af2-8d32-bc47417dd4d9","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":69,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"04b6e3d8-e726-4ccf-b858-95eec137fe74","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":69,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"102b05e5-de54-4fa9-bdfb-2c6498837010","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":69,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"8e982ed2-7a81-41e1-9dae-e4e83d88769c","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":69,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"3d60ad6b-d968-42ae-a7c3-ff61fc6fd4f0","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":69,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"cad21e74-81d6-4c73-9277-d01fd9b26d51","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":69,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"b8b45904-4560-46ae-afe8-d858e9611e9f","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":69,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"3231c641-f4b9-4e1e-b56f-3f11bb2e4434","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":69,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"3e22dc93-88cb-4abd-9559-9276ad24892c","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":69,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"b8d17625-96fe-490e-8d88-2ec6d273da3a","block_type":"box","text":"traded.","page_number":69,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"4fe83436-1871-4e8d-8c42-776a6ece8430","block_type":"box","text":"Currency Futures.","page_number":69,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"02cb84e9-f5ee-41f9-8b0a-c998f71ce78c","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":69,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"2559875b-3b78-40e5-bf22-7d44f132cda4","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":69,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"49cb9475-205c-417f-be66-32413f6f89d7","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":69,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"f44f2045-aa53-4f2e-938b-861c59d9f4ab","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":69,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"937c690f-2081-4c91-9a5d-923aa5f48b02","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":69,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"143279b0-0bf4-4f73-90f4-64a71806faf8","block_type":"box","text":"Currency Options.","page_number":69,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"14f9f218-0b12-4534-9308-1e3566cae338","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":69,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"7991cc4e-5828-4867-891d-045287a8fae8","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":69,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"20b7f972-6702-4863-a3e2-d750105507d0","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":69,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"08962a46-ed6b-4856-9877-e8580b516777","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":69,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"d8ff8873-f85c-477c-9fda-42f6042be802","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":69,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"bac22ce8-8a38-4a57-91fb-fb736c2c2d9e","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":69,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"092c3f0f-d074-4885-a55e-4775c1e6338a","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":69,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"9da1bb66-37c5-4220-a439-5ed17a337b22","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":69,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"b80131a8-9577-432c-b431-e4eb6547f788","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":69,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"fb1b3c8d-c751-4308-bff3-97cc2cd63e32","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":69,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"9d9c6af1-f9cc-4370-b596-e8becafdb9bb","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":69,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"773f1702-7a45-4950-9c3f-9dbcb59fb520","block_type":"box","text":"Currency Swaps.","page_number":69,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"34524d0e-fc95-4134-989c-be27afcb4a6a","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":69,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"615eca34-92a1-4c96-bb12-15be70ae43e7","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":69,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"d9c83f53-f8c8-4c10-a3d0-9f12b1f13e81","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":69,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"02527a15-1203-46a5-a060-7321f6a5ae35","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":69,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"2a4a4330-7dc0-4ef4-8945-7e77cce1c193","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":69,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"5f475927-4f8c-4539-be94-2fad0c6d7c93","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":69,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"cf614cf2-6406-43c2-87d3-894c7bf89ba6","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":69,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"6f0b4923-68a4-43db-91fa-959bf60793cb","block_type":"box","text":"Distressed Securities.","page_number":69,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"b7f18469-5d0b-4f65-9678-c18f5d95fb78","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":69,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"bbeb77c0-1992-408b-981e-d07db17567f2","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":69,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"6c90b7e6-e485-4db2-abe0-15c4a196e792","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":69,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"fb9702e5-0e51-4832-8169-ca469c09bf16","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":69,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"d1de81df-04c5-443d-b2a5-49b4879ea8ed","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":69,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"a51a55bc-0ca6-46d8-9b73-7182adecc446","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":69,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"42e4740b-4216-4002-9c10-90e3837e3650","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":69,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"debe8975-8138-4edd-b9f1-6794fbc9242f","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":69,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"5b250ca3-7f9c-477e-a38a-0954314fd365","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":69,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"c658b4b5-12c7-4d08-be02-89ea7c5f89c2","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":69,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"670d835e-cb94-4d4d-98c3-d1347fe0dfe5","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":69,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"ea024541-d1c2-4c04-a8f0-c56037efb74d","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":69,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"1f7cb548-8dd8-466f-ad94-ba4312f10925","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":69,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"4b4e4f4f-d04e-4193-947c-9cc0d7238596","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":69,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"b615706b-2169-4f84-9aff-caf0a8ace05a","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":69,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"a55e96a7-e75e-4f06-be5c-ad4844b1bdf1","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":69,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"6a6ae57a-b843-47f2-81b8-8847b4b3f742","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":69,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"6cf248be-5d9c-4dd6-ab60-47031b9ff72a","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":69,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"b271162c-dd99-4363-9b74-5802b43fbf26","block_type":"box","text":"satisfied (","page_number":69,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"b0b6b933-5c94-421a-842c-3cbe681e887e","block_type":"box","text":"e.g.","page_number":69,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"23dab3c4-f04b-42f1-91bd-3bfb6aea27fa","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":69,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"c9d9c05a-3352-4778-8be5-8a4f5aff3897","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":69,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"80e01a70-dd82-4aa5-a8b7-837a14f4c1a3","block_type":"box","text":"II-25","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"251b03e0-963d-49d5-bc8a-480e975e0ce0","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0095b99-b5b1-41cc-95b4-92cb70259588","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":70,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"c81a101b-b18d-4f31-aaa1-75d7269a1d8d","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":70,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"da55bbe4-d8e2-4180-88cc-d3dce197ed0a","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":70,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"65d99011-9cee-48c1-a8cb-7de7afbaad91","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":70,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"5fd1310a-e82e-4d87-9a89-20affc95ad50","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":70,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"304ffed7-7dd3-46d2-ac14-5b9d06bde914","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":70,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"b71282c0-dc79-45f4-86bc-fac44aa7d957","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":70,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"632c71a4-0556-4fbe-b905-4d5f3a0f9bf1","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":70,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"8c340416-9dc8-485b-9864-cae392716080","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":70,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"bea97f20-032e-4599-afa3-f2b1b8809bfc","block_type":"box","text":"affairs.","page_number":70,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"195317e8-9194-40ac-89ac-c389431506e1","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":70,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"9a118ea8-dde1-48e5-8834-4afebce978ea","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":70,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"fd448d14-4182-483b-a769-b95d215423d3","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":70,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e8c0deda-2af5-41c1-805a-d4e54257652d","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":70,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"8bfc9135-6b51-4039-9c4f-9cf6d277c169","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":70,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"63e6e8dc-9f4b-4da3-9a78-f1b1fa305ccc","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":70,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"53ff418d-4977-47e4-8649-f836e8fa3047","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":70,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"a2067e2e-f822-429a-b56c-09c67bcede9d","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":70,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"fe0929ac-f78a-41e2-9996-b52bfd193569","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":70,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"649922b8-1a1a-4274-8eab-ccf95a5949c9","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":70,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"18087b96-a82f-46b9-bae5-29146c40c71c","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":70,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"5168a158-b61a-4ac5-b378-08dbbff92c0b","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":70,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"7a6008bd-8a3b-41cb-8aa5-5baef248378a","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":70,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"35e74e7e-3301-4402-982e-d2d44f87e350","block_type":"box","text":"Equity Securities.","page_number":70,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"f3b3bcde-28a1-44cc-b6bb-8448a2242a35","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":70,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"7fcc9775-6fb4-4172-9f3f-14be272dae3f","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":70,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"6ced0809-969c-4da6-bbef-037cd7c6cb82","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":70,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"48bfaa0a-de2b-41e1-8b6d-73e34cb06ea8","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":70,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"8bd600b9-cf62-4938-8711-b30c5b569481","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":70,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"59b04c99-5244-45a3-b8ab-a5d79f926c6d","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":70,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"537e6713-5db3-49c9-809a-74390cd4b29e","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":70,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"d49a689b-b91d-47d6-a995-12cda1360f1e","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":70,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"5a1a5f3d-b743-4db5-93ed-8ec42b213014","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":70,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"0d87a910-15d3-400f-bd56-b5f9a2597ac4","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":70,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"1254e341-448c-42e3-8c9b-6dbc8e5ce209","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":70,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"a4e05c6c-777b-4bee-97d6-81f37b8a1cab","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":70,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"0b761e3e-fb83-4225-9e50-4d9446cca5d4","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":70,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"d5e88d4c-07c5-40af-bf1c-9545c8a9d046","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":70,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"86d54a2b-4db4-4224-ba87-9ffd74ebd71f","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":70,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"d8cdf5e9-68a1-4b7f-b028-ea71bda29d9b","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":70,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"e0a20cee-0c2c-46c9-b9c9-4ba1cd5fdce6","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":70,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"62441705-c6bf-4853-b0a6-b97a66b8dc4a","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":70,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"d4e808d7-93fc-4738-a112-1ff0d83e9c2c","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":70,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"a054e0b1-0412-44e2-af37-aad1aebe67a8","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":70,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"7daaea98-83fd-48a8-a70b-e35408d12f62","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":70,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"910e861b-8769-4c3d-ae3b-63fc1efee859","block_type":"box","text":"initial public offering.","page_number":70,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"002461cf-9bba-4875-8e30-8a33ddcf661e","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":70,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"de20b356-ffb2-4475-b706-810893e3d8cd","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":70,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"83ca224a-85ef-4629-b298-89493b9a39fe","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":70,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"418e0b73-6ea9-4746-a580-a271248c3069","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":70,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"73b1616d-c703-42ba-8df5-e916014d8885","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":70,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"e4659641-3812-4f90-9ea8-9d5b043bf15f","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":70,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"02f314f4-3e3e-4d23-8dea-9971e6e9c1dc","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":70,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"93640b6b-80be-4bb1-b528-50e0dd5cefc1","block_type":"box","text":"more established companies.","page_number":70,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"819f3f92-55d0-4315-b9ea-8e95001f4d6f","block_type":"box","text":"II-26","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d5fc99f3-6ceb-490d-8b0b-92f5779a9876","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d7e9b6d-b1aa-459b-a3d4-46026a379a87","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":71,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"9bdb4759-9e03-45b4-881d-87cabe2e8dbf","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":71,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"da79c9f9-f9da-4a37-932e-eff51de8ff71","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":71,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"8672b19f-4e8f-4f42-8ceb-8b49be236515","block_type":"box","text":"below.","page_number":71,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"83c08a64-e695-4eeb-a4a4-9efe078443b6","block_type":"box","text":"Real Estate-Related Securities.","page_number":71,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"9e9ae312-541e-4583-8718-1fe2f3106777","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":71,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"2a312d8b-604a-413f-bcda-3b3aa5489291","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":71,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"4cbee787-f714-4bb8-b694-c0cb7ef4415f","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":71,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"feb953b9-5beb-4cfa-82b9-d8768aa6c040","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":71,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"f2b6f7e2-2920-4aa5-83da-3aaa5a97481d","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":71,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"3ef24380-434e-4071-9e83-b54e2ce4ad91","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":71,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"c94daa78-02c7-495c-8182-b1ffab6b5f9a","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":71,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"73f21ab7-7c2a-47a0-a911-e01537d53721","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":71,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"724080af-1ae2-41e7-a1de-7bd3190e99d2","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":71,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"dc9b1c58-1eec-4f34-b785-493fad31aecd","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":71,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"93913e4b-98b1-4817-870e-45ae8feeec08","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":71,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"6bd9044a-dce6-4f37-991d-29f2bcf8f099","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":71,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"1c48c0a6-fbd5-48b7-954e-79d8e0bb7521","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":71,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"161ba9f0-ebf2-47eb-82aa-8eb434f74b64","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":71,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"dada44fe-ad53-4d52-a8ee-0bec07a807f0","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":71,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"ba755a2e-e532-4dcc-a27a-c427465923bd","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":71,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"3aad2eab-85d4-4139-a893-f536eb0f3a6f","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":71,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"db7f8439-6d55-4b11-8a0e-1e07a9fd0b8a","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":71,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"944542ac-71f2-4ac8-b062-15eb52f06ed0","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":71,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"da05f33f-8223-4af1-bec1-6c265bc303c0","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":71,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"0a1d3c84-41aa-43da-99e9-6bb80bd26417","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":71,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"a89211a8-a76b-4d1a-bed3-d279be503ef2","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":71,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"c834d726-a8ce-4935-a41f-d209f326db2b","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":71,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"44acf5f7-5b65-4a49-9dae-3b6883ee00b9","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":71,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"14b73065-b8fa-4dbd-aaee-6948e476982d","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":71,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"a8f40b0b-a9a7-4d37-811f-b67dd1fb61fb","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":71,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"9b52cbde-1564-4489-935d-02417cb92141","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":71,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"afd08241-e2b5-4642-ba04-280cf45f5199","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":71,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"b19a04d8-8da2-4d76-8892-8a41eeed0705","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":71,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"052b6ffd-7d58-4e32-8845-02dc9fe883eb","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":71,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"ffc24b38-d2a0-441f-a644-011a6499610a","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":71,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"3a587af6-6708-4bd9-b58b-66f19652ef93","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":71,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"d8564ab8-7f53-4b7b-908f-9e31f40e477c","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":71,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"43bbd7ba-2f7e-4c7f-88cf-261ebd248b76","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":71,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"c4371b80-d7e6-4ad2-b028-efec58a8cc0e","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":71,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"9c7235cb-4973-493b-a320-59b51829d459","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":71,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"7e0ba7d8-833a-4c96-a3df-2d58e1d813fe","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":71,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"cff2f3b7-ddf9-4e14-991e-3b9ab41ffa09","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":71,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"27c98548-6c84-4552-b456-acf184e3c06b","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":71,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"dcb42f07-262d-418c-b50b-48c00f47c16a","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":71,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"cd8659d1-b22e-4c83-b749-1688d2eb22f7","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":71,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"7a771dd6-6aeb-4a06-8990-3c7f81e5096a","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":71,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"c8aa7ec9-a4a8-47ba-9cd7-1acddf47ea52","block_type":"box","text":"cycles.","page_number":71,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"1a9cb4ab-a2a5-4205-9d0d-aa0382fbabfa","block_type":"box","text":"Tracking Stocks","page_number":71,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"8d06968d-560f-4ac3-aa4d-eb5ac3c18e14","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":71,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"47e3fa40-33a8-4ed7-b716-62825d1acd4c","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":71,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"56bfa650-d481-4ec7-8d2a-10ae7d1c38dc","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":71,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"aae7c701-de42-4935-a1ee-3506ea068ae5","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":71,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"b533d49e-3ff8-4399-ba33-dbda6444589d","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":71,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"41922ab9-023b-43b2-b3fc-6ff22ffc7955","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":71,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"847bb1d9-6a42-439e-82cf-3f1edaa8b4eb","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":71,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"af5e3f7d-e702-41a7-98ca-b1de9ecf1178","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":71,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"25c73344-4eb8-4d9a-8d6a-762ac058d6dd","block_type":"box","text":"II-27","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ec8b1b2-b5a6-4dd1-810c-5c35d217ea08","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"47e2294a-5da7-4073-a9ad-b42fa99960fd","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":72,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"91596860-7bf2-40c8-8eab-8f6550770734","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":72,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"23fcf28a-502d-4f89-8a2c-9fad16b6679e","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":72,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"81d04bf4-cff1-4eee-b999-fc9e7e7593b5","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":72,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"dfdbba74-0ebe-4654-b9d8-b3e57810314b","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":72,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"125f3d30-a869-4277-b6f8-a5c10eefb98f","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":72,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"7196f925-1cd8-4802-abad-0ba34f00a2cf","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":72,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"ee053a96-a416-40e4-b135-e39e563fbcf7","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":72,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"30c27297-4210-49ed-9370-eeb511d3a195","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":72,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"30d72032-36c8-4a75-82dc-6c7f2cf73ce8","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":72,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"53bdba40-33e8-49d0-bcb4-ceb6bce9d958","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":72,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"8a6996ca-346d-434b-b32d-e4897f12b61c","block_type":"box","text":"ETN.","page_number":72,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"56520abd-928d-46dd-ad7e-0997902dc585","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":72,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"e1cc287e-7321-465c-b92e-012554d24824","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":72,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"1d3f97fa-80f8-4ff8-996f-8e21030693f3","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":72,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"0ac4174e-185d-471b-a75d-445dbd8a64c5","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":72,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"ece91a07-3be6-46d0-abbb-7ade17afa136","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":72,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"bc89d965-d2db-415a-b2bd-88258f27ffb8","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":72,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"a6267a50-c0a4-45fe-b3a0-e4bda4d815c6","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":72,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"93e175b8-c0a0-4239-8885-4a18c21ebb85","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":72,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"eacf2109-93ac-4c94-968e-47b43921f3c4","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":72,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"1b97d500-9c51-4618-8f65-116d8aeb40cc","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":72,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"ccaaf45b-e8da-49a9-93cd-6a275ae95703","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":72,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"0d6ab7a2-2c7d-4d2e-bbdb-d08a27b3ade4","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":72,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"8eb63c38-1ae5-433f-a325-20cdb9765021","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":72,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"9ab07403-c2db-4df8-8bac-13d82392b79e","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":72,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"8d08f9be-5ff9-4d19-b36c-61849e4f8045","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":72,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"e9b1446e-c9c5-4aa5-9324-8ed54ce76ce4","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":72,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"5c22e45e-05e3-4f83-9e23-cf3fead164e5","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":72,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"fbfa677e-f8c9-49f2-afd5-a55db45fcb90","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":72,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"9c2cdb7a-45e9-4409-ba6a-3e97209fd52b","block_type":"box","text":"Foreign Investments.","page_number":72,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"dc82d34e-7fb0-4a7f-9040-814980765951","block_type":"box","text":"Foreign Investment Risks.","page_number":72,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"05a35490-9432-4683-b1d2-c00233973954","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":72,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"47a19904-0944-4440-b339-77a1c4db7e71","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":72,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"b528dff5-767a-40a6-8f56-102abd50662d","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":72,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"cc5a68b8-0195-4b35-a997-4814645f3bfe","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":72,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"682a3fb3-1ca4-47af-bd6e-65fb2617410d","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":72,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"744add06-ab46-4eea-a001-d1412c03facb","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":72,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"a4f7c769-7e7b-491c-a075-64728a28cf8f","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":72,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"976c4ef1-91cb-40d2-81b8-df23da1bdb13","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":72,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"ba8de49a-f3a4-4dfc-9e34-0201aea84ce0","block_type":"box","text":"benchmark index.","page_number":72,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"2a18295b-8d6b-4b71-b29c-af0423bd95fd","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":72,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"0f9acf25-b619-41f4-9597-ba45f4beffbe","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":72,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"35e19417-110c-4732-bbbb-6360691d17a4","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":72,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"768167a4-ab5c-433f-a825-8a38d7e6e6c0","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":72,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"ff8a29e6-b11e-4456-8825-b0f241edf721","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":72,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"c92ec2f6-dca3-48a8-a64d-84c7a371ccc5","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":72,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"4fb7864c-17c6-4541-858f-6b77117f750e","block_type":"box","text":"securities and zero-coupon securities.","page_number":72,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"7d12537c-09db-4ece-a937-6d6869a326f2","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":72,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"bbb95335-0654-43c6-840a-a28c64668227","block_type":"box","text":"taxes.","page_number":72,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"2d408104-9b57-43a9-b57c-ccd19d51ea57","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":72,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"76e5508a-e259-4fb3-99bf-4c10fa4ad8c9","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":72,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"34b52b9e-9586-491f-8907-896683289044","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":72,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"c3405072-8454-4af0-8751-bc91758880f4","block_type":"box","text":"II-28","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e7a24e20-cc9c-4532-ba8b-7d25ae8f4777","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da599bbf-72f0-440a-a2e6-8b7ed9f53781","block_type":"box","text":"underlying security (","page_number":73,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"a9389773-d7c1-4192-8e0f-fa7d322eb591","block_type":"box","text":"i.e.","page_number":73,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"280d3b61-54c7-4c8b-9592-143e8e4321c8","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":73,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"7bf8a715-3676-4008-bd7c-9ce7ada700e3","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":73,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"6d6762b7-82c0-4a2e-8851-6ecb281ccac3","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":73,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"6e2f6605-9f22-4a79-93a2-9d837e335ed4","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":73,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"873b426c-d734-49dd-aad0-94915e4dbe80","block_type":"box","text":"Foreign Market Risk.","page_number":73,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"ace29c2b-3bca-491e-9aa1-cf6347af4bae","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":73,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"81481f9f-d326-49a8-b035-175e86011c21","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":73,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"34fad621-8cee-4517-a9b9-0b3d0eeb04a6","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":73,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"6968e076-6cf7-42fd-b303-91197943fae0","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":73,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"baf3d168-6890-4482-9559-3aeadc08a750","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":73,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"3a27d0d8-7cb7-42bc-92a6-e667c3e29879","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":73,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"9f5403f0-0647-46ea-9f6b-369ea69b7cd5","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":73,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"169d8eef-137e-4134-a86d-63f38cc8b723","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":73,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"1fb98feb-b492-4cf8-9f76-d50ae7992062","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"2ff2974a-f8ab-4ece-abab-135dfa28b524","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":73,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"a7bb36c4-511c-4a8e-9355-cf027ceed70c","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":73,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"098c3350-d6ae-4696-b557-2f41adcd7142","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":73,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"22c0e390-c267-4937-b1fc-6878131c95a4","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":73,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"bdbe75f5-ddc8-4cfd-9352-fbc29cc7a5ca","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":73,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"7a1942a7-3188-4969-950f-ee38a9a545a1","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":73,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"c41213d2-7abd-4247-9640-e5dbfbc0b1a0","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":73,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"065e4ea4-c806-446f-b15c-5aab37330420","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":73,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"c6813296-ac7c-4cfb-87e4-410b7ce678d2","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":73,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"a83e925f-0bea-45b8-abe8-5279d6ce9709","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":73,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"8b27552b-269e-4b22-86a3-0a3cbb58efe9","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":73,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"b892b3c5-f5da-4b2b-a12b-0074b82e90b6","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":73,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"fdbbebb1-f248-47a3-85bb-6f7dabaa87df","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":73,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"0a694a76-58ee-4342-a5bb-3f5922d79e2b","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":73,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"b3c76b94-aea9-4274-9a9b-d5da5110dcae","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":73,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"58aaf680-03ad-445a-bc81-2a1c45ab4770","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":73,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"5ef19b3c-53ce-4820-b3c4-b71e87fc67b1","block_type":"box","text":"Fund’s operations.","page_number":73,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"601cb893-c783-43e5-9d59-e52ee435c96e","block_type":"box","text":"Foreign Economy Risk.","page_number":73,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"9a428827-9151-4f21-bfd8-3c3586e77bad","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":73,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"0d77acf9-2bb4-48c6-b3a9-9062794fa992","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":73,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"954a5509-a649-48a6-a1fb-607a80d1e77b","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":73,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"3e4682d3-1bed-409c-a523-a005b6a36544","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":73,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"992d9d4a-c206-4008-b88d-4ffd2c615216","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":73,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"85bac50f-019d-455e-b261-f493ea663bb8","block_type":"box","text":"measures.","page_number":73,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"e8f67492-702e-46a2-a76e-6acdc9c0a940","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":73,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"9b5305c8-25a0-4183-8f92-472979800095","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":73,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"149bfa6e-8e53-4cb8-896c-b086dab01822","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":73,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"810ea894-748e-4df3-9c01-5b7fe0e17dd2","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":73,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"fd093bf9-73e1-41a6-bfcf-86a2b02171e4","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":73,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"735194ba-1697-48fb-9110-9e44f85f75af","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":73,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"a6be1996-8174-44c3-b21a-6c220f81891c","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":73,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"af0f75e0-cf68-413f-9f79-3f4e8541d555","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":73,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"92085d2c-7ef1-4e24-a52d-659de0081e05","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":73,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"11cfe3f6-c851-41b5-8407-8839afea9ca2","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":73,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"4df24c78-df07-4b68-b978-065b305b0020","block_type":"box","text":"United States or abroad.","page_number":73,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"8513fe5a-02d8-4d5b-8be9-64bad577cb68","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":73,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"be47d653-ebb5-48cf-9aad-dcb50c7b8a0f","block_type":"box","text":"Many foreign governments supervise and","page_number":73,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"f1b2aa82-1506-4944-94a4-903a737c94b9","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":73,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"cc12c5f8-6bea-4808-9098-5c634c8087d4","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":73,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"f13a9575-cec5-4e5d-b91f-71775835d402","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":73,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"59def234-52a5-4b6b-84a3-a210c9c66966","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":73,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"695638de-85fd-4da0-9e57-5f9120d87829","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":73,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"55ad1c20-9b1c-48dc-8a0e-25512471fef5","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":73,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"85b24d0c-edae-4fde-ba20-a96fff70cd4e","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":73,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"cb0d45db-4a1e-4167-bcb2-38067eccce19","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":73,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"a67e9571-19e0-43f0-ab74-384c2b782361","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":73,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"82895382-cdc6-4984-9ff6-18fd9351cac9","block_type":"box","text":"II-29","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"59726b4a-b1a5-44ed-bf06-e76143a45315","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4cd59160-3c4a-486b-a215-5d95c77cf88d","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":74,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"482aaead-a8b5-4399-aba0-4799bc630675","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":74,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"8a529747-33db-4dc4-a31e-85e3de9f4ac0","block_type":"box","text":"investments.","page_number":74,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"0e4db38b-d9e3-45d9-95bd-656ccfcc6a23","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":74,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"129f9da0-6474-4487-8158-acba94715e67","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":74,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"a1c81606-0461-4bbd-aced-4dc2761bb276","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":74,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"fc465597-b6c6-4e51-8b9a-aacd33dc2a4d","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":74,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"7074287c-0a59-4a20-8f35-00a8cc54c262","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":74,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"51adab0c-843f-424e-b634-a4a544cc988e","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":74,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"89c5c48f-f939-414e-a094-d2034a5475aa","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":74,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"ba92d967-9372-46a4-8591-0c1f55fb7869","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":74,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"a55fca5e-d0de-496d-a609-507e8ee1e2ca","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":74,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"c4e035cf-c12a-4ff2-8900-2e6dd41e4237","block_type":"box","text":"States.","page_number":74,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"a458cb62-74bf-43e9-bfc3-1f9f0bee9a2e","block_type":"box","text":"Publicly Available Information.","page_number":74,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"a26b9fc0-d335-49af-8315-a5af6912d825","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":74,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"f0bc37f9-5403-4fd2-8474-406c18b0a691","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":74,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"710f2002-383e-4be0-8e4b-e84ccc1eac19","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":74,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"86a5182a-94d0-4c46-98a4-e0670b6eca03","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":74,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"33259f4f-7ad8-40b9-b009-21a42d67e807","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":74,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"851be097-4d1d-4c7f-9e4a-56de86805e5b","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":74,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"ba606a58-9915-49de-9b2f-0575a3d9b1f7","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":74,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"cb859565-f035-48c2-ac3f-6507c0deb92b","block_type":"box","text":"United States.","page_number":74,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"60ccb094-80f1-41a0-93c9-63a3cef7b637","block_type":"box","text":"Settlement Risk.","page_number":74,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"cb469d1a-7ea1-4cef-a399-b1b12a58b792","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":74,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"92ed5bf9-ddc4-4177-9b1a-027ab7805a16","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":74,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"ddfb9a9c-dffd-493c-ba8d-56a9bea07063","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":74,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"1322e298-b3ed-448f-8bfb-b67295e263ab","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":74,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"25bab350-156d-42df-bacb-223edddbba4a","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":74,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"b72a5896-4cd2-4480-a594-dcbe10de2b9c","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":74,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"dc719d01-0436-4dd3-aa8f-e0ffa15b0f82","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":74,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"e425a957-2d22-4136-aa80-78b19171d7f5","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":74,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"86c521f7-89ab-4993-a3f6-0b5b19b7c7fa","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":74,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"6731eada-3c8b-4925-bd2b-0e725ad077b7","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":74,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"f6a1f3d8-5b2a-4be0-9221-b40de223eb85","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":74,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"e54c0083-545d-4321-a449-0847c3957e24","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":74,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"a1be8a7d-b903-4277-82c1-402973399eb0","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":74,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"b310c25d-40ca-4ad7-9a65-ea16eac0a3e9","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":74,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"9444b356-baef-4824-b602-016a63712429","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":74,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"849a56a1-bd5c-4827-96e1-b942168e9b86","block_type":"box","text":"Sovereign Debt.","page_number":74,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"e5c082ce-fdfd-4dbb-b51b-f76a3a970158","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":74,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"05b133ee-214b-4ed1-b6a2-2f4a3c2719d2","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":74,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"b71cca8f-e41c-4c71-8547-0f6d9d91107c","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":74,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"3d4c2a9b-9f6d-4acd-a315-d8f9338c47a3","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":74,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"c945ead1-1dd6-44d7-b0eb-af1416911f52","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":74,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"6e03b839-810a-4c84-87be-a36665197acd","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":74,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"a65eb30e-6f34-4ff3-90b0-7fb4316922d4","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":74,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"27aaa148-94f6-49d4-84be-ed3ae8682353","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":74,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"4b84571a-2bea-45b8-8bcc-5595dccd8303","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":74,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"7766d9fe-1cc1-4723-8ae9-0ee20533075f","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":74,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"0494cf2a-bc4a-43f1-9a3e-7d61a4debd60","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":74,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"5789ce71-4c88-4fb1-921e-16863dc7356a","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":74,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"7879c013-ca74-4ec3-ba8a-8785616045d6","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":74,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"735cea23-30a4-4c46-b0e1-d803fbd8f238","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":74,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"399fdf3b-69fa-4737-94cb-e5bca33eb285","block_type":"box","text":"debt.","page_number":74,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"fc8db615-38bb-4cc7-903d-ac1d2c230f10","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":74,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"2041689d-6ec6-4bb3-b90f-d093b7fc3981","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":74,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"0a62aec1-88a0-46da-9f78-b0c2ec5b85df","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":74,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"785b8b54-ca18-411f-8baf-0c635d0433f9","block_type":"box","text":"II-30","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"52a6de1c-1576-4d2f-95c4-63c3a78f76a4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a41427a2-5c5e-4b04-9ea2-ecf54e425911","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":75,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"f1f3d445-ed76-4969-82b2-382ebebe5260","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":75,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"ba6923f1-eaf4-4abc-9b2b-b46d687ee640","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":75,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"9e2aef01-9ae0-451b-bed0-74853aa76d06","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":75,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"f4be0de9-2eed-43d0-b8fa-b7d717884db9","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":75,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"56561206-f8ae-42ee-b90c-7d5a01c5ba3b","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":75,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"1899855d-8723-45f7-b4bb-9ad68a784d11","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":75,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"74cd3d14-adee-4db4-968f-9f3dc90003ba","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":75,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"a8ed5f82-5043-4115-8c3f-8831aa4fd019","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":75,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"25dfca7f-c11c-4060-9873-9e58b5b09180","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":75,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"c85eebfa-6a35-46b2-97c0-b92242c4b9a4","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":75,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"9b4b5b85-1888-4c86-a613-eecb28154361","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":75,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"2e6462c3-b769-41ea-8219-b97ae7fbea1d","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":75,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"ea0798f8-157a-4473-95da-eadc2cc170ef","block_type":"box","text":"in the Fund’s net asset value.","page_number":75,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"ebcfbc12-226b-4e62-874f-debccf41621c","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":75,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"19467664-25c6-44ca-ab06-c6b7a835727b","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":75,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"c8b0d06e-379a-41ef-a113-e70c7c814e95","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":75,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"23eb1fc2-b765-49c7-a0c4-4509bc2f2cca","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":75,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"51e6a3e3-a580-4284-bd93-96f4ef8a96a5","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":75,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"16133cd5-ade2-490d-a8f6-2fe498228639","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":75,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"c8408cc8-bdbb-4be1-a6c1-f6f3c6f5e4f9","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":75,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"7cbe7fff-edba-4db9-97fe-f85cae49be52","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":75,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"f74c04b0-b260-4c8b-848f-c6fe83675da2","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":75,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"ba765508-a622-487e-9f27-ec69425497e5","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":75,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"dfe65297-c712-4932-b9b1-848494ac4278","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":75,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"56c78f0c-09f3-42e7-9f94-fca1a446d064","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":75,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"f7492762-37d1-4af7-a9df-737efbf5b6b0","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":75,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"a53a0710-64d9-40f3-907a-8b60dd002905","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":75,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"4bf4989b-4672-4c7e-864c-3ccacc93e323","block_type":"box","text":"Fund may invest.","page_number":75,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"6d1e4715-6d0b-461f-84c2-f2157f2ff93f","block_type":"box","text":"Funding Agreements.","page_number":75,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"4440ae52-e802-4a37-a49f-3403584e3d4c","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":75,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"b2856953-87a0-4fce-8e6e-4cb76294cc56","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":75,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"16cb1801-450c-4c2f-8fd9-786d75173ca2","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":75,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"2b8459db-1552-4c39-9cd9-3dc3728291b7","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":75,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"c45ae23b-18ff-49e5-85fc-e8d94c2a6c05","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":75,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"c51e1de0-0a3a-4d56-a3c6-3e5cf9c466df","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":75,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"177fee68-9eab-4886-87f8-01b8ef30667b","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":75,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"fc8bb64d-9450-41a7-b435-fb62d8c79c16","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":75,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"a2832fe0-a26f-471b-9a50-43ae4d828202","block_type":"box","text":"Guarantees.","page_number":75,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"50c65cc0-c981-4b30-bd21-bd4173eb5ce7","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":75,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"a71b4296-10f2-4f3c-b174-c655b769339e","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":75,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"755f8501-cf12-4ec3-a56e-3c7aa0d7f920","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":75,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"2651f026-3729-4dbd-b82e-e393b10db771","block_type":"box","text":"Illiquid Investments.","page_number":75,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"f87b75a3-c5c3-4b6c-ae27-2bf20313d8a5","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":75,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"593e4143-72dc-4b19-a4fe-a6c20da509e1","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":75,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"ead02a6a-1535-43d1-81cb-f37990ed9f95","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":75,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"d8344ee0-0b50-4c5b-af32-c90bfa0a961c","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":75,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"dfa2799f-ee5b-475a-9dd2-5cfe4debcab6","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":75,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"1812d14a-b479-4ba3-8a84-4c706f1c903b","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":75,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"796bb6c8-4960-4d58-98a3-85680ddf7266","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":75,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"05fc59a7-e09f-400c-8193-6e7718fdbee8","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":75,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"ddc71943-14e5-4a6e-9aee-09ec69922bfa","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":75,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"8544e1cd-065f-46a5-8880-492eb2ca7fe0","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":75,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"3da6ceac-0b5f-404b-b4b1-8d2f6687f52f","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":75,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"65e10a26-c8ca-4b32-b383-bd17471d0482","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":75,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"e4b217d1-8474-4fc0-9968-2e7ea9654080","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":75,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"25e87348-134a-4e09-a70a-5c0ad04db48d","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":75,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"219b3d22-8885-42a3-b582-ffdc2d4b73d5","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":75,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"d7e6695a-7eef-4da1-bf41-b5a1835ec9ef","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":75,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"00b253be-56f8-4c50-b3f2-32be2979d551","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":75,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"5d13a04b-f065-4063-99e8-964c446d0864","block_type":"box","text":"II-31","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e974e6ee-be9b-4a55-a5a4-e17fba19cc38","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfcc54e2-7953-4178-9f9d-041d08a1d854","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":76,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"49d10b18-ef4a-4cd0-a0d7-3054f35eb1da","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":76,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"29d1a897-e8b1-430d-98d3-97f7249f02ef","block_type":"box","text":"Index Funds.","page_number":76,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"f39b226f-c1b3-42d4-b70e-376bd8f3c96a","block_type":"box","text":"Cash Flows; Expenses.","page_number":76,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"51256c81-f91d-49a0-afff-5f114df54c89","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":76,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"527c87c1-69f0-45c4-9135-03d8af4815ed","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":76,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"3afce2ca-74e9-450f-8640-f51dc81380f5","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":76,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"5d1fc2a2-81fd-45a5-b90b-20ea788d3070","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":76,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"eb6ce500-a58c-43bf-8e88-494272de61ca","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":76,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"f13cf0d4-73d5-4aed-83da-838e5e6f9ac6","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":76,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"bf57f434-113f-45dc-b4c5-ef77b59e7b3c","block_type":"box","text":"(","page_number":76,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"93b6b191-872d-4f7b-8029-0e3faf286e4d","block_type":"box","text":"e.g.","page_number":76,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"a0ff7b15-c422-411d-9d4e-573a41d36286","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":76,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"a17405dc-82a5-4171-afa3-ec03e5c80d30","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":76,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"8cc90f35-7c5d-4bb9-90e4-343d552e1962","block_type":"box","text":"par ticular security as an investment.","page_number":76,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"979ac358-5744-4f16-a882-d6e2519c09b1","block_type":"box","text":"Tracking Error Risk","page_number":76,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"16c6a1f7-ff95-4f3f-8457-7e5998c5c304","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":76,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"6eb68fd3-f2bb-4ecb-bf60-34f3a02e2174","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":76,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"bbc8944b-7290-4e05-acb2-830b9e40e726","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":76,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"394f242e-e46b-434d-9562-a6eda4a485f2","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":76,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"186ee852-7393-448d-9f43-ecf05d754114","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":76,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"68030cd1-c39b-450c-85ca-edd84d90ede3","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":76,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"4b99b3b2-66c7-420d-9695-dfeab56e1867","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":76,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"6c13a399-6886-41be-83b4-53aacf2e81b9","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":76,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"ec10dff7-b1e9-4f92-9e3e-455f8a76f961","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":76,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"80a42905-64a8-41e4-9da7-a273edc6f57d","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":76,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"928e2a14-1d21-42ce-ab62-39dfb45ea2dd","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":76,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"e63cc38b-a638-484b-aa19-acff99e599d7","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":76,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"6bc6477c-b894-4595-bf61-9c653faffcb8","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":76,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"e3f870ac-b1f4-42ea-a340-c04712946fda","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":76,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"544268e8-42f0-4d72-8890-f63aabf2e81a","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":76,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"f5bf2d51-7782-41db-afef-6054f2de4620","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":76,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"e6e814be-d196-4d4a-ae14-2846b6f16548","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":76,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"92c22e90-f886-4bad-ab7d-2a9d9b4fa1bf","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":76,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"375e41e7-d188-4cb9-ab45-d7f6c394f947","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":76,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"00d6aacf-bb46-4486-a45f-109e539db9d9","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":76,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"4920fac9-3bac-4e4a-b446-d838e0614719","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":76,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"ec1369f9-8d80-46d0-a75b-f34351217860","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":76,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"24010a8f-f699-4220-b390-e27bed622d74","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":76,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"70a62b3f-9ebf-40d6-9337-b992b33144ad","block_type":"box","text":"from an Underlying Index or a Fund’s por tfolio, and the inclusion of such securities will result in an adverse impact to","page_number":76,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"a4a3c28c-755c-4106-88a9-0c6aeb90a622","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":76,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"923a0f0e-2e6d-4856-880c-c735c00a1da6","block_type":"box","text":"S&P 500®","page_number":76,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"466c76b2-1489-4f68-8a89-01b7ecc32a18","block_type":"box","text":"0®","page_number":76,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"12b25064-421d-40e0-aca5-0f0bc18700c7","block_type":"box","text":"Index (“S&P 500”).","page_number":76,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"1418ec4a-ba3d-422c-ae9b-a9406824d16d","block_type":"box","text":"“Standard & Poor’s","page_number":76,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"63c38de4-cf23-4eaf-9708-6af271043518","block_type":"box","text":"®","page_number":76,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"f6b64e58-25af-4ba6-a840-287b112c4763","block_type":"box","text":",” “S&P","page_number":76,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"c9213b5b-d97c-4359-a00e-0b0f2f5cf345","block_type":"box","text":"®","page_number":76,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"bc7a0827-0418-462b-9940-74f1a15f2b7f","block_type":"box","text":",” “S&P 500","page_number":76,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"df90cea3-aeca-4a0c-a064-88eb0cf34aa3","block_type":"box","text":"®","page_number":76,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"03a0ec5a-9d13-4aa4-af15-b1f1a3e82ea9","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":76,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"3901cb7d-54f4-485a-af63-254300cdd245","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by cer tain mutual funds sponsored and advised by","page_number":76,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"e0115f7b-2bbc-49b6-9c8a-8d6f7137309a","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":76,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"0022cdc8-dca7-4590-a509-6d5abbb18341","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":76,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"3ed8f0f1-0a2e-43df-9d73-55525bf81d28","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":76,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"98909959-3153-4f56-b7f9-5c120a0e7ede","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":76,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"2ce23e09-d9ea-4f3f-be79-198cf3997a33","block_type":"box","text":"track general stock market per formance. S&P’s only relationship to cer tain Funds is the licensing of cer tain","page_number":76,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"71f24be5-509f-4f72-b43b-3820c38dce1d","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":76,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"6a03102e-6846-4757-8484-f7f5d734fbe1","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":76,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"627d1333-bfcb-4287-afdf-5a62f52f7ed1","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. 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A Fund may also invest in so-called “inverse floating obligations”","page_number":78,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"431e0142-a9f8-47ee-a40d-7b25d9a6a293","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":78,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"b87753dc-2840-448d-b68a-d4e768423b97","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":78,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"d446b7df-2f47-40b7-bd72-449a9ace8f93","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":78,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"b3050475-9eb8-417e-8c50-702da4519b2d","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":78,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"271a84a1-0b89-455c-a34a-cd930f728944","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":78,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"8cea15dc-7fff-497b-b1eb-ca8736df4fb0","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":78,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"80f2d718-d252-4786-86ca-4b74422ebe02","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":78,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"cb18aeae-536f-4e9a-a84b-e884a42c2251","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":78,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"c50aefc8-8ccb-4d95-91bd-55de834bb2af","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":78,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"4b085fb1-1efc-48cc-9a94-f16e362e7993","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":78,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"e4ced4d6-2fb3-4873-b705-ba5b1320ed3e","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":78,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"2dba49ad-9e57-4d1a-9377-b0be62e35ed9","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":78,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"08dbb70d-accf-4881-b26c-ed7ed2e4b6df","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":78,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"0c7b59cc-a826-4287-96e8-5cb5e170653f","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":78,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"b8c9ab32-e846-4057-abe4-38abf4c8f5ae","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":78,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"e7341f3c-0fe8-469a-b3dd-aa66c224ad02","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":78,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"c5a675b4-e3c1-4217-b6fe-4109c5030fd4","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":78,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"1cb940c3-c785-4980-98e2-3e0bba2a5c75","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":78,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"a79fcd40-b3d0-4917-ba8f-30438c90ed9e","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":78,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"88b39fd1-5e49-4792-8e08-d050b66c6b36","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":78,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"604a07cf-6b8d-4173-b3af-564ab2b0fa19","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":78,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"730d3607-67bd-4824-8f72-1df8cd6d8488","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":78,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"97146a58-42a5-4b2d-89df-68f19e85cf7c","block_type":"box","text":"Inflation Risk.","page_number":78,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"3a0f6a36-d0fb-440c-8f20-0851c70c21d9","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":78,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"4888efb8-e3ee-49d3-b8b4-eebd7a6c3ceb","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":78,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"e9c46669-6203-4184-9bee-be6ade2b7dff","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":78,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"3e4704eb-cc8b-4a36-b971-3d83f9b5c5e6","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":78,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"e38aaeea-5f69-46ff-8a62-78f80d8b55de","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":78,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"b458d261-7943-44c9-a779-624f067ef8c9","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":78,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"e568eb3a-925c-4f2e-afa3-1a0c573a6efb","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":78,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"dc21d147-1e93-4c87-be30-68dadf3ce1e2","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":78,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"61ccad96-1c8e-4987-92a7-a2b0e8bb0f00","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":78,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"bd53ce6d-c0fc-40ca-a832-068888b9684f","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":78,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"db49bd92-bbc8-422d-8d6d-63ef5779e0c4","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":78,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"5e5cdd09-be62-4311-b86e-2faaa79f2670","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":78,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"77631181-c824-4c15-9236-cea6c0da286c","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":78,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"bbb5a49f-e8c9-4d5f-9789-ec2e12720ffa","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":78,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"6f76033e-bc0c-4a58-9f44-183e67513d59","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":78,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"7208c702-33e7-4c2e-b59d-023036a920a5","block_type":"box","text":"II-34","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"384dee1f-86fa-4bb7-ba4e-9446916c9209","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67214fc4-7b76-441b-8349-902d6e3c36b6","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":79,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"6a5d281b-bbb3-4d35-bc1c-f9ed71851c66","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":79,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"0529bb39-37a8-4614-acbe-9c6192d47ea8","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":79,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"33bbcb47-716a-4c76-894d-a1613ad2b2f2","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":79,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"bfa213c6-97bd-4407-a987-b2cd521f2a66","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":79,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"bec0e22c-adf0-4715-9858-87675be17d39","block_type":"box","text":"be available for very limited periods.","page_number":79,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"bb719d1b-045e-4b5c-b2c2-ffa93f4de0ef","block_type":"box","text":"Investment in Emerging Markets.","page_number":79,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"1d714039-e67a-4dd6-85c5-1ede3ae31471","block_type":"box","text":"General.","page_number":79,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"bdf3a421-837e-4398-9e17-1f1add017243","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":79,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"809c1a47-2acf-4f9a-a60e-d7e998b1ff9c","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":79,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"3419bf67-6d12-48de-81d6-8c1d7fa10de7","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":79,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"7ae7ba05-68db-4277-9170-eb4b1cfe6bbe","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":79,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"cec047d2-180e-4c92-a2ef-0e5a47ed6dd3","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":79,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"1afa5035-75cb-45bc-9826-ff99a5f0d0ad","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":79,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"5e55a087-073c-4fb3-9ae5-b4a70d77d116","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":79,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"2c703fc1-1a5d-445d-845e-6d4d25713ea6","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":79,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"9b6a84d7-2a2c-4278-ac54-e71672aa8015","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":79,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"cc263765-82ea-4ece-918d-52fd4b66537f","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":79,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"13c5ddba-8038-40f2-ad9a-028132c15ae7","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":79,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"f1ab2d1b-992e-4025-ab05-02c99c717911","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":79,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"b92de7ac-19f4-4b01-9a9b-5e4bf3d2b6e2","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":79,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"bca549e6-3b74-400d-8f28-5d3ba3965bd2","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":79,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"d9decd2d-dd5a-4a02-a3b0-e6b626335e02","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":79,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"8744a76d-cdc6-4173-a8bf-e95ff1c24d3e","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":79,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"8b32a0b9-0073-4cf8-8ee8-25c28fcaf10e","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":79,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"1be3ee61-b7f0-4700-b96b-98277fc089b4","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":79,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"66b0f04d-7188-49ae-914f-e6d08371b819","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":79,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"76eb52f0-dc11-4fb7-b287-ac987d0bded1","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":79,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"a590beca-10a9-48b4-8da5-d8250e56978d","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":79,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"8aa9c97a-635d-4cc8-aaea-c17a0820fd28","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":79,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"cb925da5-0189-4bea-ab7b-87a7acce7694","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":79,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"496f25eb-359f-46e0-9f56-c3f2f8852164","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":79,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"e22c310c-c903-4b8d-969a-4375a2df0ceb","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":79,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"04e78f45-f123-4081-b4fe-8062ac3fbe46","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":79,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"ada5742c-953a-4158-9691-69ad1faa5b10","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":79,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"082b4922-d17d-46a7-8a4e-18d930644522","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":79,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"8c335a6f-53fe-4ae5-a236-2f071fc67958","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":79,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9ebe63ee-089a-4725-8d7c-c86825ae01e2","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":79,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"f2a8e2c3-b872-4b74-b3b4-adfab83c81bc","block_type":"box","text":"volatile than investments in more established markets.","page_number":79,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"9b1e90b7-1c14-400c-abf6-8fa6aa7957c5","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":79,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"b34c9cd8-8108-43dd-bfcd-1fdf04f01abc","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":79,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"873769b6-aa84-4a95-989c-b77846ea8dee","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":79,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"ddc14459-358f-4d4f-911b-ca167925461e","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":79,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"62d78025-9b14-4fe7-996e-f97ac9381658","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":79,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"3147ae7f-e606-4070-b4d6-12b6579c9fcf","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":79,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"49ef4012-f502-4a90-aa88-d84931741271","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":79,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"d32bd8f4-1668-45a6-826c-5ef50ec326aa","block_type":"box","text":"acquisition or disposal of securities.","page_number":79,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"4c9086ae-31a1-46d0-8519-14ef23526aa6","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":79,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"f05f6e8a-f917-46e8-9dac-e461626becf3","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":79,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"b80c2027-db03-4f6b-90a9-232b3f5cdb4c","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":79,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"d8217747-db7b-4780-905c-7c971697db51","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":79,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"42a54de7-908a-4b41-969f-1e05ee7394bc","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":79,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"1ff1cd3f-2659-479f-b550-e2e603706c90","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":79,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"9b4ec271-4b5f-4bf5-bf9b-08720fd2b22e","block_type":"box","text":"II-35","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3eda39dc-c69d-4cf6-a5d1-636f7378ece0","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"517a2b3d-be3f-4233-9551-41777f7f6dfd","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":80,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"6138fb3d-b248-4d9f-b3e1-9ba8089b4244","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":80,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"09e965bd-6319-46b3-8898-8f2beee36b6b","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":80,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"d859b449-32f0-438c-9184-9bab4ee9ebc3","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":80,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"1a035882-ac37-4ea9-b2c1-86e1f0adb316","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":80,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"70351085-2542-4908-b372-4672778a7859","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":80,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"8f44bfa1-eb07-40bd-a1e0-0cafc9afb43b","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":80,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"d2e94c21-03d0-4ab0-9530-c1df6fbf07bb","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":80,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"8340852f-b302-4a89-a2e1-c42370474c94","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":80,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"30c1aa97-2e5e-4d72-90aa-0ddc10ddd75d","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":80,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"d16a5088-e629-46e1-9bc9-26196bf3680d","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":80,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"3fe18a4a-1606-4c78-b31b-30c1ef8c1e77","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":80,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"7e61bb99-8bf6-4e62-8cf0-1e40669ef36d","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":80,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"2de406b8-1e17-4c80-a9b0-9c92ceae4c72","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":80,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"c3eb934a-28aa-440d-9343-0ac7b3e933eb","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":80,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"e10fab78-393f-4e96-8379-732c83df393c","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":80,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"54c31b34-2c62-4e0d-aa00-d97d100810b6","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":80,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"9ee05d23-6e7a-486d-9d4b-d577a63484fb","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":80,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"fcdfd1f9-08a1-49ae-8eaa-27e9825dcba2","block_type":"box","text":"per formance of the Fund.","page_number":80,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"1442c25c-6dc3-4b3c-b3f1-33a4e29d5105","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":80,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"030c0df5-69fe-47c9-b77f-22879cd0ba10","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":80,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"bff35c6e-eb6a-4e01-87a0-90779fb7b466","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":80,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"66a2fe42-ac7b-4ca5-8a85-ab0095692e03","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":80,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"eb93dd8f-4331-4fa5-bdb7-5923027dc585","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":80,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"2f8a8e76-be07-4cf9-9147-2b1eaed68b30","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":80,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"ff293023-f7ac-41a8-ac09-db1ee3af755b","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":80,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"3c9dd6ac-3f30-434d-90b2-e15316570ec4","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":80,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"b14ee697-a14f-49a9-9eb3-3669e62dcd57","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":80,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"cdbeb66b-0a99-4016-9581-21254d0c0456","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":80,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"2c3e3d8f-2d0d-40b5-9d1f-d1652db2e648","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":80,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"1fc9ed7b-c197-417c-9c91-6fb2c33a004d","block_type":"box","text":"affected by a variety of factors.","page_number":80,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"1af70001-cdb9-416f-9d7c-a0f9da7debae","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":80,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"e268c8a2-d19a-460a-ac3f-541f47f7638e","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":80,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"a3119dbb-f208-42c1-a61d-5cee2cc3761e","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":80,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"6dca652d-4e7f-4e6a-97a0-0b125432b09a","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":80,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"9a43ddc7-b041-43b6-8155-3f398db518f0","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":80,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"463bb2e0-2e3c-44e8-bc79-4ec868896eeb","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":80,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"77cfc001-bec2-4b54-a36c-62caa1f0ddd8","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":80,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"c269d33f-e62a-4248-a44b-e0f32020b788","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":80,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"7bdb66e8-6ffa-4c84-8a0d-0de2b8dfc039","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":80,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"ae12a972-2970-49bd-88af-66c29c5af09c","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":80,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"f1b0c0bb-2ab6-4ab9-a9dd-5e4d59d967ce","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":80,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"eba6832a-fb6e-48ca-975b-788bc29e6305","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":80,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"17a5070b-4de3-4ea4-b71c-db36a898f4e7","block_type":"box","text":"nations.","page_number":80,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"2a766de9-7e1f-40e5-89ac-4895d47ae8b1","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":80,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"d35d34f5-324c-470f-beb7-a453565fb8fe","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":80,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"402bbf67-e031-463a-b75d-f9561d22a33d","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":80,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"b9cfc6e4-4671-44d0-a0a3-2092d46f106f","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":80,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"e42ae404-f55d-4bac-be96-f67850c4e598","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":80,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"ee350245-12c8-42b2-9d4b-e8035699df7d","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":80,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"b6bc53e8-4014-402d-828f-aedf6b61d403","block_type":"box","text":"market Asia-Pacific companies.","page_number":80,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"44cc33dd-fde6-412d-b262-f2a3f365cc55","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":80,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"78ac9fe7-0c3b-4a5a-a7f8-72b569d5cb6b","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":80,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"53cb0fea-59f9-4236-9fa6-87997125828c","block_type":"box","text":"services for such securities outside such countries.","page_number":80,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"7fcdd36d-5e7e-4b87-ac53-7070e562d73b","block_type":"box","text":"II-36","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3e6cd3cd-0a6f-4c66-ab98-17c4d64eb515","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bcbf9822-3797-4777-b881-82b0296934cc","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":81,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"e04d9d89-ebc4-4f7c-892d-cb8ec719a8a1","block_type":"box","text":"to commercial banks and foreign governments.","page_number":81,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"8ddaacdd-7cb3-4b25-9f7a-80078fdc40e8","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":81,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"70025ee9-c3d5-4262-a37b-d350844be6ba","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":81,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"f0518f63-5bd5-478c-9917-29538a661049","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":81,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"97ccb8f9-de0c-4643-ad8a-fdcf65aeb860","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":81,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"7881fd90-9a08-4943-ae2e-dade4aeef56e","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":81,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"d63c5ff7-fe8d-4f90-8cc8-0e4f319fb569","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":81,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"d1ebeaf9-25bf-4449-81a2-cb8ffde9d1c9","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":81,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"ebdd7b1a-f419-4bf8-a197-a342781fefdc","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":81,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"a106c476-741c-4721-bcfb-882da689d62f","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":81,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"191686a8-01de-47b3-adea-763fc772116c","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":81,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"59287782-1329-40b5-8696-7a18ae7cee1e","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":81,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"26335653-9238-4a71-8764-68f1df3ee2cb","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":81,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"fafd58b0-d83c-4993-b63c-5166a60a2d9e","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":81,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"cecffe67-e047-47cd-acd2-7e9438facdf3","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":81,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"71488d85-e23c-4e8c-9d05-80abe546d575","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":81,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"7cc34fce-305b-4f04-b6ff-faba0538270c","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":81,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"ed805f7f-ffcc-4da2-97b3-c47b38eddfe1","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":81,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"bd2da280-333d-4741-932b-06a98ab1364e","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":81,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"e55cb41d-6721-473e-b48c-58a79199946c","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":81,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"d26e9072-9af6-4a60-8aaf-adcc885483e4","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":81,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"fb7f0248-0509-4494-9e3f-127ef085d686","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":81,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"d96ab289-4d80-4f6e-9cc6-45ad66d6cb1c","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":81,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"2be24c89-3881-456b-89c1-622df615871e","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":81,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"45698073-d30d-4f20-a201-433b9637316e","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":81,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"35b29258-721c-42fb-85e0-ef6f0a8168c3","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":81,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"0346c71f-7d06-480a-85db-acfac84bcc4f","block_type":"box","text":"investment at that time.","page_number":81,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"784d5ee6-3ae1-4b4f-bd2c-9bc6edfadc77","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":81,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"f0165b36-1e43-44d1-9532-67835a98780f","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":81,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"94e94202-70bd-4cdc-9aec-d35c24aaf33f","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":81,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"2b3d0eb1-36b7-492b-8fe8-eb84696f6aed","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":81,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"88974431-749a-4061-85a9-10c5b4938435","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":81,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"b2295886-a0b4-4659-9ba3-f72e36208175","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":81,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"d8f58383-60bb-493c-956e-d4ef0291b461","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":81,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"c2893357-fabc-4bd1-a3e1-2612e9f488d7","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":81,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"9c31769f-5975-4766-b20a-86ca4473b92e","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":81,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"90194419-cc61-48e3-9382-59170bc8cd36","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":81,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"4dc6359f-3802-4404-9197-f0d840927298","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":81,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"3c7ae264-b46b-432f-a3e4-98390f7a331a","block_type":"box","text":"government).","page_number":81,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"f3965228-d32d-445e-ac07-bfc75782f38e","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":81,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"766e7b5c-ac43-4f20-9cbc-a237f29af8ab","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":81,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"b205dcab-c90c-4341-8271-0a4a4e47cdf1","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":81,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"d3ce150d-9b20-4109-b9c5-658de7e8be34","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":81,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"26719384-7b30-4ed6-8a46-3d2048477b1d","block_type":"box","text":"foreign banks and other financial institutions.","page_number":81,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"4624ef2a-e527-4456-ab4f-d36a46e293a2","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":81,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"aaa48d68-e8b3-4cba-bf8a-efcff68d6dd8","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":81,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"5d79ea88-1cd1-4c2e-a036-39acd661cab8","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":81,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"0bd69405-8d86-4e23-844f-f0a74e7056d3","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":81,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"666db9ad-3f2b-4bb7-a78a-1f81bb2e301f","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":81,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"574ee9ae-1cbf-4c5c-991a-ef9864fece19","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":81,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"4da5649c-d0dd-4809-b234-daa27dc10aae","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":81,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"5c45c279-c4e4-44d8-bf81-72129c7aad06","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":81,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"06ab8f06-1d73-49e4-83ba-c3b362cf8464","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":81,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"356e44e2-ef39-4065-a27f-44342fbdf224","block_type":"box","text":"II-37","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c644648b-5022-45ba-8454-a1c07543eedd","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7291dff0-ad54-4899-b694-bf028e678b82","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":82,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"6e8d5c95-2aca-4768-8985-8eae3b6fe075","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":82,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"ae01563b-441d-4c17-98b3-1e0fb700f462","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":82,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"3f8bb3b6-97f9-4131-b842-6707daab77f4","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":82,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"8a3a82a2-b3eb-4368-9ce0-3f2545915121","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":82,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"ac658c52-9bb5-493f-be83-24a42be87763","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":82,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"87fbabf4-1bd6-4ed4-a5c8-2e6da339b92f","block_type":"box","text":"foreign securities.","page_number":82,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"3d4b2616-8fe2-4ebe-9ff6-04c10a10e471","block_type":"box","text":"Risks of Investments in Russia.","page_number":82,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"568757b9-2fbf-4292-a05a-182091fd634f","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":82,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"75560ced-fb27-4863-8798-d26a28a2e096","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":82,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"bfb70d2b-8e76-4915-b94b-698f56d1fa51","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":82,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"27d31f54-02d8-42bc-8d93-c95f9c6b5ea0","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":82,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"b396556f-287d-44e7-ace7-7d575a4de7e9","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":82,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"f6ead763-36f8-4ad8-ae18-1e8dea95b8d1","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":82,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"88efc0b4-ef2d-460f-9947-968fb78709b6","block_type":"box","text":"developed markets.","page_number":82,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"a271ce32-94d8-4db3-a1fb-7846b51160f5","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":82,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"1d8d2b11-3457-4acd-8934-cb6d5f66e913","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":82,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"77847631-e051-4246-91db-203ec1c8f303","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":82,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"8ae8c883-44a1-4741-b4cb-f064ecefbd61","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":82,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"0f2b304d-1925-4daa-9459-43ff5fd52805","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":82,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"37be89f1-de1e-492f-a0b3-4423a7172c1c","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":82,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"4964b7dd-e116-48a3-97f7-5b81c4ea6468","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":82,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"3f5fc454-a1da-47dc-b79d-8ff30606ce8d","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":82,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"07b61f3f-888f-464c-b253-d6cd59cb29e4","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":82,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"0808f74c-9dd9-48ae-b326-73a3c8fa269d","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":82,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"d313ce47-11ae-486a-91f2-ef9bafbea8ca","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":82,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"11bfbe63-5d04-4806-a20e-e63b014a200a","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":82,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"08e41ad8-d700-44ba-a6e0-3f606963dbb6","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":82,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"1dab3df7-7d60-4fcd-a923-6b68c58c6d6f","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":82,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"98d93936-469b-4ffd-85e8-b7654d3ad886","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":82,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"46616c4f-8c5a-45a7-af40-56631bf187a4","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":82,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"1445be3f-4867-43cf-b85b-e7b6543a361c","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":82,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"3683da0b-e7e4-4c55-b262-708d3453a484","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":82,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"ca6617ba-4b0a-413b-9b77-4fa3dc1d042f","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":82,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"f45fe061-e0cf-4ee5-bf58-0943716406ab","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":82,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"998513e1-89ad-4112-a301-2acb947ffc64","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":82,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"78f6ff81-6653-4f26-abe3-253970de1c07","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":82,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"0e7f4416-1687-4931-b50f-b3fe82e3d7e5","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":82,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"d038a081-046e-4242-85e1-96fcd5d9c9b1","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":82,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"5f8e4709-0962-4d71-b1f7-4f10bec89d65","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":82,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"27be3ef6-98be-4743-b1d7-69ef2ab84856","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":82,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"e309a484-8dc6-4166-879f-e96d40ba514b","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":82,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"663cdafb-6893-479c-8ac8-da430841cf78","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":82,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"be9ce6c8-1072-4ac7-9621-1b6287d7fa7d","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":82,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"2d006a5f-61f7-4130-9bc7-664d9ef91ebc","block_type":"box","text":"sectors globally.","page_number":82,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"7a476f82-21f3-4027-8082-2c9f98dbdf26","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":82,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"d3ab1c11-0a06-49a4-b601-bbdd90b8ef50","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":82,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"50cef6e8-789d-417b-976f-6a877d352f99","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":82,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"5c7f6154-12b6-4d17-8ee9-e7dc04ea5e93","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":82,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"624d912a-37d0-4c87-937d-ec36fbd5ac1b","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":82,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"add7b2ae-e9ec-4c45-964a-36a4e06a50f3","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":82,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"bd4fd3d2-3cc4-4980-aed2-b01d7bdcfbc7","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":82,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"2fd3c497-fd83-462b-b056-42dc181a3d10","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":82,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"c60961f5-04a7-4cfd-abf0-3e8fd3272125","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":82,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"fa1a29e8-8944-447c-9de6-c412059e090a","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":82,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"122dd6b3-9f8b-4992-a201-e11ba5ac5aff","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":82,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"a6677ca8-7dea-4f98-8c52-1f44332c66de","block_type":"box","text":"II-38","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8778fce-f967-4e03-bac4-a0acea779f7f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c94d5de5-0b40-4455-94d0-8f1da6df57aa","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":83,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"f299e5ba-6e1a-471b-b3ab-8e3871f2478e","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":83,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"a83e6f57-23c4-4c2a-8700-982a5863d03f","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":83,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"1ca29df6-1b4e-45e3-a7cb-9f13be436e24","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":83,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"9d3cc341-faa7-417b-b29b-2203345b26bc","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":83,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"1c989b79-9595-4783-935c-a9254b002167","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":83,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"7f7274dc-193a-44b8-aa40-ef130d0580f0","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":83,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"f0e60f16-3ec7-4a54-97bc-a5da9630ec23","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":83,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"ccbfcc97-017c-4532-9f96-354f99b904e4","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":83,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"625a5428-9dc6-4849-ab6d-7c554164cf6d","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":83,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"42d81aaa-8a92-4307-a901-4ef6e53d7a7f","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":83,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"d7a41e99-9967-4c0e-8918-a98422d9d54c","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":83,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"9977d207-195e-416a-a2bb-74f51a2a9302","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":83,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"407344e6-2b4e-4ab7-a97a-3e509dfd08f2","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":83,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"adbb01ba-833e-4d87-a91b-27d9340576bf","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":83,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"1c5d56d2-290d-40cf-bfd1-91583496e87c","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":83,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"1f0d7c62-580d-4ec0-861c-77b0c6aa10d0","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":83,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"a819ee04-bc9d-4e45-a456-acf6ba93886f","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":83,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"f5a58f95-e366-4c77-a464-d86f820766d1","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":83,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"2ef12511-0805-44bd-a2c6-b832cf64b64d","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":83,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"f088c76d-3fed-48bb-90f2-f231d7b9e2df","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":83,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"62f730c4-9f67-49e8-8f47-149b95ddf547","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":83,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"f5bf4a24-a088-4f66-9db1-abfb0aac7b58","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":83,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"099d0490-4060-4738-be53-b39a410189ff","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":83,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"6ac65e28-6374-4dc1-b48b-422707d855ca","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":83,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"194f43ba-1c6a-4fba-89e1-d3232e352ba4","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":83,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"1b3fba75-59b2-4aaa-8b84-cc34371c1618","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":83,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"d50fc510-8545-4275-ad7a-3db047b358cc","block_type":"box","text":"impacted.","page_number":83,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"fbaf09f6-aad0-499c-afaf-6a19b4e67d31","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":83,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"0f85d9d6-2324-46b8-9e08-8a6dc39c0d50","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":83,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"6602ada0-605b-48c7-a0fb-ae0bebd75189","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":83,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"ed8bc11c-4711-4adb-a4d9-35f48743bb8e","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":83,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"84b7e414-70a0-4e1f-a1dd-d10dbbe26fca","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":83,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"955a734f-9578-4fa0-aa3b-a070db7ee807","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":83,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"57c3ebe8-6e13-4cb8-8d0c-0f929401170e","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":83,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"2e3e65ae-61d1-4df6-af9c-917d7e89e4f5","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":83,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"609714d6-81a4-45fb-96e1-ac1cbabc1271","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":83,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"69b99d8c-06b9-4ac0-af0a-5b595246f285","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":83,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"0109709a-0f22-40cd-8c6d-1cbf55ca47c5","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":83,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"ebb29d74-2088-493f-a003-b71288f2f285","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":83,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"903118dd-a891-45ca-8861-92a3b76f53e5","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":83,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"363da7fc-124d-4b02-804e-d015ed93998b","block_type":"box","text":"economy.","page_number":83,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"a62971fe-4174-4927-b501-25d4d0242121","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":83,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"2d46f716-c686-42ea-8223-c84cc750e3a6","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":83,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"b0663d9b-f33a-4fc6-8454-c50605fa4640","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":83,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"cf5e34cb-1d75-4a0c-973c-fbdf06f2aa58","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":83,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"89498514-c934-4fe9-8671-0863ca2c9602","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":83,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"a486d375-7e66-4134-9b9b-36d06bf27586","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":83,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"cf08264a-51f8-40bc-81d3-509804d79805","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":83,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"c77135e3-aff6-4f6c-a553-ef5d83a73e9a","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":83,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"3793a44d-a3e4-430a-8867-07db75fabd70","block_type":"box","text":"typically the case for investment managers.","page_number":83,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"6aefbabd-c29b-4805-8e98-e1e49df1015e","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":83,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"25d10ce3-e1a7-4868-950b-e084ba197b89","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":83,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"20d989df-704a-4e74-a6a7-4d393f8bd421","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":83,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"2e219289-2085-4e8c-b2e5-a6e1248540eb","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":83,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"a4e6dbb1-d709-4757-83d9-270acc3acf2f","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":83,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"57ee504b-cd84-457d-a5c1-c04dab326186","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":83,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"4c1dcc99-e869-4ae6-bf1e-f41a3ff3bc37","block_type":"box","text":"II-39","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b475563f-ed85-4c1c-a399-6d3cbbd73cc3","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06ef32dd-a18b-400f-b298-43c47e1047ee","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":84,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"635cb256-c9e1-4009-9dbf-2fd730a401a6","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":84,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"81f20af4-803b-4025-8b22-6db9a9193586","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":84,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"4cc90409-3379-43ff-9716-633e4ef7996a","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":84,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"ab4aaa67-0c21-449c-a709-a9909a29ae80","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":84,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"d9dcb537-1873-4ca2-8805-6f7a15ea19e1","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":84,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"301c931b-c59b-4006-ac44-cbbcb6b0ac8d","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":84,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"535c6e6e-cb20-4df1-ac36-6f2e241a814d","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":84,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"f4ccf3a4-0d4d-4c65-afb0-99abcb4d0fc1","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":84,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"abb25850-878c-4d57-bce5-b2a028fa8d17","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":84,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"362adb3b-b0d2-454f-a5b3-e4dbd30bfcc9","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":84,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"d5204e1b-3898-4d07-946c-8aa63e16c36c","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":84,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"4d3abfae-4c96-49af-9b8b-b0c110f1eecd","block_type":"box","text":"will be indirectly subject to those risks.","page_number":84,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"1787f576-024f-49d7-82bf-0b9c9c35801e","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":84,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"355de16e-cbf3-4c1c-9137-d3c366c3256d","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":84,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"42cd1bce-d4b5-4996-ace1-c83035dbdb11","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":84,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"bbc0cb78-57c3-4e55-ac20-bcb37fe49661","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":84,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"54db420e-f736-4a9a-8820-7309467dc80d","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":84,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"6e33516a-0793-4df0-8c52-74ddede9bf4e","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":84,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"38549526-f122-429f-bc8b-2d99aa627ddd","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":84,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"f9839d9d-a830-47ae-afa3-ba3e6dcf16d5","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":84,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"319e6423-48e6-40e6-9ce9-5aa321ee41aa","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":84,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"6a0bb823-f5c7-4e44-afcf-8f8a97009b12","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":84,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"0b0f2cc2-a2b8-4a41-b191-06e9a5f9626f","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":84,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"990357fa-e707-46d1-bf7b-a5dc1d718b01","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":84,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"98c12664-b78e-4af1-85cb-e2f2c7c168ad","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":84,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"7386ef3f-0119-4834-877c-9aaa011613ef","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":84,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"1be66d29-656c-45bb-b4cc-df8e681e610c","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":84,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"dd0672c0-44fa-4e95-9c0a-2f3460b8a513","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":84,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"cfe60b2e-b499-4ada-b32f-b3f77100a18c","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":84,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"f0eb4422-8d4f-40c5-9316-81072546e21c","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":84,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"49abec4b-f79a-4ea4-993d-8ffba1019c67","block_type":"box","text":"impact on a Fund’s investments.","page_number":84,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"b29695ca-4fd8-46b0-8693-e855f0c17046","block_type":"box","text":"Brady Bonds.","page_number":84,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"37356e27-c5de-46ef-a012-cf88c45cec61","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":84,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"b5826953-6a33-4e11-b16a-39db4f9409d5","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":84,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"b5786729-106f-420c-b95e-b7d023d40ff4","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":84,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"2caf4969-173d-41d8-b4ff-24ee1069337d","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":84,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"370b1502-fd1f-4b24-bf06-391c5505806e","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":84,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"01b4a8b0-9c7d-4e0b-a688-7a34776663c7","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":84,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"ca9703e0-c296-4c8f-ad41-ebb7f5822178","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":84,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"10b2de59-be1f-4f94-8fd4-52ec51c0269c","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":84,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"06b8a4f7-2c92-4f63-91c2-84f1810515de","block_type":"box","text":"Venezuela.","page_number":84,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"625f31ac-4f70-45ce-9b8b-666b39c40a7f","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":84,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"5f67c864-9ff4-4448-87c6-b1e635afb425","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":84,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"3ae8663f-e425-46c6-b4da-f02f3286eb57","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":84,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"147cd43c-08ea-4c25-8c91-4f0ebe622168","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":84,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"7683f1ff-8113-4f6b-9308-1cf89c01dac7","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":84,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"5afe1fde-d76d-41a9-9c81-fbb29207810d","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":84,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"7c634847-b5bf-434a-b3dd-34d679abf7ea","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":84,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"fcd2b83b-a6ab-4456-9f89-cee9947a6fb9","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":84,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"c8c56465-fd62-431d-b89d-871f3828aa19","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":84,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"487adc4c-6513-4438-bbc2-d71ef00aad54","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":84,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"ba7fa459-a90e-4033-81d9-72ed77867eba","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":84,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"9efdf432-6a03-4234-ac83-3cb92b2af74c","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":84,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"2b9ef9fe-1613-45cb-a9c7-49467d9da717","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":84,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"2f5655b6-d9e8-49c2-93b5-09478f04b1fe","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":84,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"70c6582b-3b91-4278-baff-3f792956caf6","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":84,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"2cbfb6ed-81b9-4647-8537-78795411fd4b","block_type":"box","text":"II-40","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a8fdf91-37b5-463e-8ccc-5c5411b75694","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dbfa9d32-57a0-47b0-85d2-1648d11bd810","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":85,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"c191b353-10e2-4418-9bc6-771a9a81d464","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":85,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"6a17e377-217b-4762-9a01-771cd34bfd06","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":85,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"6d979d3b-53ee-4969-8ab9-0f61032e931a","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":85,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"21b991f9-3413-4590-8d92-216dd7851c88","block_type":"box","text":"China Investments Risk.","page_number":85,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"1dc90b4b-3125-49d6-979a-93b60ddf5c99","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":85,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"4015d337-9943-4fe1-ae68-a8747f1faa64","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":85,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"2df430cc-98fa-4cc5-acef-f56bc0f3905d","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":85,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"1b1191ae-2fa1-4321-8140-2cb6d9e4621f","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":85,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"88be22b8-8002-4c6b-a4df-ffe104220e31","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":85,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"bc77129c-7e67-4821-be29-3e9db30ddd95","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":85,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"b0ecbdec-c4d2-4438-b81b-d2cffac2080a","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":85,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"56ec6d9a-46b3-4d6a-901a-1223551ae548","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":85,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"71956e1f-b8a2-4607-975c-d4dd1f1797a5","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":85,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"166d30f6-fb46-4f99-a9e4-7907bc124b77","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":85,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"803aa954-04f1-4938-959a-79991bdfe09d","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":85,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"4e85ff49-6a0c-4dd9-a712-891b34f18aef","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":85,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"cfad8767-ad0e-4545-bb21-89490aa5a7e2","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":85,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"ec229120-1922-4708-aa10-89f82d2f8b12","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":85,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"98df3887-7232-468a-a9ce-e9bde192e3de","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":85,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"5a1548de-bdca-486c-9886-1f0973cd736a","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":85,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"144d9141-a79f-40b9-812c-7561ceabbb2e","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":85,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"1d0050d1-4b17-44e7-b61e-5c9c566f21f4","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":85,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"1fa3a0b7-0f42-4d4b-a839-0d3e9a564210","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":85,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"c83b0a2e-14ed-404d-a874-c985b464758c","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":85,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"0c5147a4-1b48-40ab-8a21-e561a57a467e","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":85,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"55dd9f80-5a41-4bc2-bbbd-229bb4f9e7dd","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":85,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"f8907177-e660-4ca5-813d-480064911d32","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":85,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"d9e7025e-122e-41cd-8034-e58c6029b0c1","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":85,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"0e8b6d95-caba-4da9-b1d3-ab973fbc4519","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":85,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"2bfcea76-cb7e-4e7b-a050-428027b0de7d","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":85,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"ec0ac7df-161a-4080-af4e-ee4d1d09ff76","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":85,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"d12c97b7-44dd-4b4a-aa3d-09099ec58c2c","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":85,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"3c67b07f-ea50-4b88-956a-12b88381daaa","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":85,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"f1a89481-53c3-476e-97cb-3606e6349a9c","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":85,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"1536deed-abc8-46df-bc46-619339094054","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":85,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"97efcf29-3422-42d0-b1f4-f9a4f97cd030","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":85,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"2cfa705f-407d-469a-9f82-1c336654714d","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":85,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"bf4e90d8-c6c2-4d28-9788-7965118efe61","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":85,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"7f0a4991-caf0-46a2-aae0-5dff8876ebdd","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":85,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"fe69cc5b-b3e9-4899-8ece-3660e2b8247a","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":85,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"65e35d24-d883-4cad-8382-58292cd59c70","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":85,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"8f010912-6d2b-48e0-b206-5cf71a209923","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":85,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"c09e04e2-58fb-4e02-8033-754f1527f201","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":85,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"8147cc06-4418-42c2-b711-de31d3441651","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":85,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"54012d59-b4e6-438a-bc27-bbe8162840db","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":85,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"47739d44-23a2-49ac-954b-9dc40ed99507","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":85,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"8d3d7f54-a3b6-446e-bc01-1ea5fb672a52","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":85,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"6c447b52-a855-4fac-8f8e-2a626802f68d","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":85,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"dcfb1d02-c0b3-4a71-91ff-888710a3ed02","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":85,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"fc1fd01b-664b-4307-88ae-eddb31514c6c","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":85,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"d753abd1-b982-43fd-8fc8-282e2437809c","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":85,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"4bacf0a4-a5ce-4634-9b79-7bc1bb5ca2c5","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":85,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"06ef4c45-ffe7-45a1-ac75-7393901ed914","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":85,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"2834897a-2d88-47e7-8c30-16be19122d2f","block_type":"box","text":"sub-custodian.","page_number":85,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"c4ecadb1-5729-4570-bdea-884157c4b4ec","block_type":"box","text":"II-41","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"14f7cc9b-8e1e-42f2-bbc7-7bd5e0236ebb","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18208ddd-2c93-46a1-bded-289762d79b4b","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":86,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"c0abca22-7801-491d-aa9e-7d97a10848ad","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":86,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"03427581-87f7-4919-b908-6b2cc9284dd2","block_type":"box","text":"on investor protection considerations.","page_number":86,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"7f0e7df1-1b2b-46fb-aab7-16d30c24e99e","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":86,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"93c987b4-3e5d-4efa-a8ad-52aff2b08abd","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":86,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"6e774b0f-aaca-464f-93e3-ff6a29b4ba80","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":86,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"fe7561e2-687d-4c3a-8577-9bc8aad3b517","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":86,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"bb4b9e03-857d-4494-92d8-73fed945f87a","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":86,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"5342b191-464c-435c-8d7f-530d888f0d8f","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":86,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"22ef500f-d636-40ef-946b-03b19434ae4f","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":86,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"4c7bdd99-583a-48fc-8857-07c77338143e","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":86,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"d1047aaf-e291-4a45-b319-c38d7f22dd17","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":86,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"0cdd448c-d2b5-4ae3-a715-d43a67d52f8f","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":86,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"08dd7f10-85b6-4cca-a9a5-52e294668678","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":86,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"795d7884-63f6-4970-9681-395c70325a67","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":86,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"fe4c0263-efde-43c9-a992-5f1a14483a70","block_type":"box","text":"accounting firm.","page_number":86,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"d8de34e0-b8bc-4017-a8ec-21c443a5defd","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":86,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"f3176100-a408-4bbc-85f2-b1b41d446680","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":86,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"70f94efd-578c-4669-ab52-84b6e45956a6","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":86,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"882d058f-65a4-4a2b-bf52-e32fa98e5213","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":86,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"b9963a4a-6905-4b07-a47c-becad0df3add","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":86,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"44a6957b-af9f-4a91-a1a7-69f63764c505","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":86,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"3d771ecb-92ce-413c-8349-3ce5d186af3b","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":86,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"632163f5-c5a6-401f-bead-0d5a2d36e704","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":86,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"aebe565a-8678-4f64-a735-95172658c049","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":86,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"74f716fa-65ba-4aea-8f5a-91e50484d961","block_type":"box","text":"RMB (“CNH”).","page_number":86,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"d7de43b9-3e98-42d0-a3dd-41f702f61960","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":86,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"25e05145-7de5-43a4-9dd1-982655cec291","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":86,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"3952599f-c51a-46b1-adcc-3491e821e31b","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":86,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"d126ec5e-34bd-4876-a539-e629dd5a57d7","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":86,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"0e76eff8-ff60-41f8-988c-a79051083c49","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":86,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"06ea88c0-7e8c-46d3-95bc-b020a0eebce2","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":86,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"bba9d315-b195-4480-a7e6-0cb43380ff37","block_type":"box","text":"represent equity ownership in the operating company.","page_number":86,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"bafc17f3-0b92-4b86-ac2d-db12b6545167","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":86,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"1bc2043a-a4c4-49b8-811f-cfffafefca56","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":86,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"4d3d7273-8969-4719-9131-1e6bf33a80fd","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":86,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"63263b96-c296-4bae-be36-54c6dfcfdd16","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":86,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"9a2644ad-573e-4bb0-bb50-75fb52a2898a","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":86,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"181516f3-1c46-49da-a6d0-d18ac112f0d6","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":86,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"b9582935-b51d-47ab-872f-50e09fece47a","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":86,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"641ba0a2-3837-4cdd-96c1-dabc4a15ae21","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":86,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"c0281550-623e-47c6-afa9-4abb8c4108c9","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":86,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"95680aba-c75b-4644-b157-263abddb3d8f","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":86,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"7bb2f735-c11b-4927-bd17-b99634d2062c","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":86,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"b1552252-9217-4f1c-b502-024089a60d8c","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":86,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"07346e74-014a-48f4-805f-7e8954ff1bb0","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":86,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"6028acae-4084-4f5f-8051-6e7d6cd67dba","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":86,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"3a94392e-c205-41b2-b845-566695f46b25","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":86,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"f6ade53e-3f25-4ccf-bfb3-643c83426983","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":86,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"ae5f2871-6265-41ae-8d12-ef7e8407b86e","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":86,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"e04d7b69-1fc0-4b09-8711-1f0ffda7ca6c","block_type":"box","text":"losses to a Fund.","page_number":86,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"36ac6d1f-b429-4b31-8b19-1daa5f12fd00","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":86,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"48ff8825-20eb-426a-a982-9a2a02059133","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":86,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"a3e7c54f-6183-4b8e-8d42-fe199b0db91d","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":86,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"3a68a886-e751-4330-b59e-895b0148834e","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":86,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"76afe226-7596-4bf8-8a7b-8c8b64c7db18","block_type":"box","text":"II-42","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6c2c9da2-92d4-41ae-b916-7670c5f32c6b","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"482ffc47-a97a-43ad-83d2-5a2719ba1033","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":87,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"17dc60e3-6b59-4e48-a039-f2fe27c8902a","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":87,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"6b818a5c-2dc9-4b65-8b51-c4b7a0229732","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":87,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"a8ca137c-f4b4-4c56-bdd0-f622e4c3afb5","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":87,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"ee99b0d9-1bfa-43c5-93c8-4f8d80a5755b","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":87,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"52a825e1-798d-4b97-b843-070e4583ea1f","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":87,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"748b4bef-d215-4407-9199-915a7916859f","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":87,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"e6c82481-36fd-46e3-897d-c981f6780fdb","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":87,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"3c6da129-7a6d-4ab7-beeb-4992c825b11e","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":87,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"4d7e822e-1095-463e-809d-be588a5739b6","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":87,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"029ebc0c-e8cf-409d-b788-cfef5bc67871","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":87,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"e9b7b25d-460f-4cc6-9d2c-3ea5f5ef96b3","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":87,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"4f0627eb-4afc-40c7-bcba-0246edf0e78b","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":87,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"31fc49e8-6969-49ce-b19b-b242016778a6","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":87,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"56287690-dd29-4a0c-b51b-1751c1cb65aa","block_type":"box","text":"such companies.","page_number":87,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"eeaeda3e-a22e-45c4-8c2a-06b0331aff74","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":87,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"7896a5ef-8895-4366-85e2-8ea6a5087222","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":87,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"910149d0-d56a-4d4b-a8ba-5cc63e086330","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":87,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"d212f352-d53a-4eb1-82fd-7f6e6daeac8f","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":87,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"8c56fd10-f359-4862-98f1-c9c0f8a1f8de","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":87,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"715a419a-f1cb-48e6-b5a8-b5b71183e8dd","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":87,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"8bade86e-e397-455d-85ae-13aaac45fa34","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":87,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"0de1ed1d-35a0-49d6-9ee8-3c6f508e40a5","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":87,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"675d6fb2-f8fb-4370-a0ab-733e00c4ecef","block_type":"box","text":"standards.","page_number":87,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"2a60a292-18f1-4488-b8d3-0259f6be8d0b","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":87,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"38e9f4ff-c0ab-4c28-99ed-46bf9d265083","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":87,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"37b59362-46b7-4602-8fb4-697b35820024","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":87,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"73b0e92d-9600-4192-a755-1c3be73ee320","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":87,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"b77e43d4-7aae-48fa-b625-8b2c8f25c425","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":87,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"c5890059-009d-41ec-a872-9b9d5f963f69","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":87,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"76d7e17a-9f5b-48a1-a05d-33bcd70fe980","block_type":"box","text":"General","page_number":87,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"7ab3a599-5055-48e9-ae5f-2c88e383752b","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":87,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"749b6786-f8a2-4f89-8a81-724d1635a0ee","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":87,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"67fa759a-5cb6-48db-b719-2231a54a2b64","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":87,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"6acc8c26-614f-48bf-b2f0-c5d0b871f63f","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":87,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"69f9cf57-227b-4940-a87e-345e9a180dc1","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":87,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"f9f5d519-b399-4595-a7ce-d493e9675dda","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":87,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"5ffa3bff-3a12-4b78-a2c2-808ec2515a48","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":87,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"9006cde8-ce4f-4552-a5a9-b9b64f84cafe","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":87,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"3a1687e8-2af0-493c-a7f0-7b76f14110f7","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":87,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"8a7cab43-bdb8-41b1-bffa-b2426383fe6c","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":87,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"5acc3a72-e2b5-4f5d-b8ad-c9050776cd35","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":87,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"ba55ba56-eee2-420a-9d1b-73b60d8ec9e7","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":87,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"e0078553-f722-4e1f-8b05-93f31299a6e4","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":87,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"181f3876-629c-4616-95b8-86eb1259e7f0","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":87,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"4a6dd5e9-f0f2-4cce-8a7c-79c47b6a7914","block_type":"box","text":"company established by SEHK.","page_number":87,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"bf384e9b-0f0b-4b1c-9d54-796c071f819a","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":87,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"a4c34948-4513-41bf-9225-c40f0ed65d02","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":87,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"40f1db41-7a9e-457e-9ee7-0a3fb9fc21a3","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":87,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"d42f5f89-9054-4ced-bc09-546729913f45","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":87,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"5ff48bb2-4dbc-4e57-bdc3-eea67d821c59","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":87,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"d6bc49e9-70ad-4de7-b1aa-d3066fe1caf0","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":87,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"0a300549-91a8-480f-884a-6b83f8bf956c","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":87,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"89723d5d-7f80-4cd8-bb70-911f8a6cdefb","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":87,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"04017a21-ffab-4978-b6fc-6a02c83d029b","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":87,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"bdee8654-771e-4e92-8a60-5e2e3cfd4321","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":87,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"d48e5fe4-641a-444f-b2b6-90764c424c70","block_type":"box","text":"II-43","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a2367b2-ff83-4ffd-8cdc-c79185754f85","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90b38830-e59d-45a8-8cbe-9915617e9684","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":88,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"f223b970-bd66-4553-b27c-5d460de326c9","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":88,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"3d2a020c-92dc-419f-98f2-6f05e69a3282","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":88,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"56f09300-2aa9-4707-90c9-57afa2bac2a4","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":88,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"de0608cd-7eff-4d60-b793-f7ad6ac78bc2","block_type":"box","text":"i.e.","page_number":88,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"6170cae4-b099-4b55-8f84-ac4b3756a815","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":88,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"954f372a-354f-4014-98ce-7ad74a469754","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":88,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"f809fe0d-6d67-46ca-8a14-5422611b0d6f","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":88,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"5ebe102d-4f94-4cbd-ac5b-2108b9281c07","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":88,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"6e81ad92-1f4c-46c3-ae09-cf49b1abcd7f","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":88,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"29c66e1b-6c08-4537-9068-495529ae2bc0","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":88,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"3b8cbd84-d444-4b2c-a9ff-750a55ad0174","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":88,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"1b9a5cfa-4c73-4d57-b7f0-766f7e333dce","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":88,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"76c133db-2931-4a1d-9b59-bb414db36a15","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":88,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"e7fec8e9-a2c6-461e-aad1-75a8eadff06d","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":88,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"9b965a26-57cc-4642-9087-a288f5deda01","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":88,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"6ce8c564-6b72-4ceb-9616-acdaf6f315dc","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":88,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"4622d21d-ffc4-42a1-be21-53ad6bb3c1ac","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":88,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"43d7d238-4435-404c-a461-dcc336d5d3fb","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":88,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"53fa6e8d-5e8d-4d87-b7ad-ac0230fd634c","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":88,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"f994e832-e41f-42cc-b6ec-6ce17196b498","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":88,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"5d948a28-86a6-4ff8-84c7-4be0b43edc87","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":88,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"2d67d0b5-9f71-4a52-b337-4364846b575d","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":88,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"a4ffde23-4012-4da9-8dd6-148c8e8ae02a","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":88,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"f6f84410-526e-458f-a242-1cdff5bd2542","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":88,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"cf780c2a-476b-4c3a-b91e-a37e09ca8bae","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":88,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"8a088937-723f-4e0c-a35d-66c26b7bb33c","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":88,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"24736f2b-8b04-44a1-9d8c-8051fc14f667","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":88,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"52a16f97-f34a-4d24-a2b8-f5e006a964f6","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":88,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"cb5f3f86-b44e-4d90-b6e0-a7c12a0da3ea","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":88,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"64793d23-5486-477b-852a-44d855cdc6f7","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":88,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"2e04e1e7-9d28-4452-9b40-d08c0508b972","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":88,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"54346c1e-f019-4e61-bf67-1ed8c49202d0","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":88,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"9f206984-fc47-451b-936c-cd5e2b7163a3","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":88,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"f1d5c58a-6f40-4852-a169-9c8bfab78428","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":88,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"46d9185f-9d89-4729-bede-6f8bef617d3b","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":88,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"a60300fa-104e-425b-b183-d350853709b6","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":88,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"fa48347c-2c7c-4459-a14c-9eebb3d9efe1","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":88,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"4fa9b1fa-799f-4513-b2bb-bf38b539c3d0","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":88,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e960840b-2ddd-4b18-a048-a6665147deb9","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":88,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"908523d2-dc2d-4a79-aa20-b54d2bb8483c","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":88,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"24a14aed-2f83-456e-80d8-0853dad6acc5","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":88,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"78a6c329-5e20-420d-b029-edb44de0bdff","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":88,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"3559a815-4c47-4ddd-9fa5-fd7df76e30b0","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":88,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"4e5c04a9-bb62-4f47-b203-46d77e91d2aa","block_type":"box","text":"PRC.","page_number":88,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"9bddb755-1d9c-4174-941b-cb93bc5f245c","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":88,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"9ad01fe3-41dd-461e-92ac-067856cddb34","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":88,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"a501d1f4-5b3b-4995-b104-b11ba3b4f9a9","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":88,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"68f0bbaa-fed0-4051-b923-117107ce1bab","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":88,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"bf88bcdc-7065-4629-b2f4-152a21469fa9","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":88,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"636290f0-615b-429b-875f-55b1d77b7101","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":88,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"013f980a-6ed9-4337-b04f-35a9d6601a79","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":88,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"25ee5944-3734-468a-9c9b-dde861af7f8a","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":88,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"b9c13014-3bec-4663-b686-b6a7681f269a","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":88,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"9e006970-e58c-40b0-b4ec-2a9c50ccfbf8","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":88,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"de4d7639-43ad-4890-8621-18719b0ad469","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":88,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"f65403c0-408c-4fec-b289-8e9e34442961","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":88,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"64cc2ba1-5eb5-4fdc-b838-68909324378c","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":88,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"512e6542-f651-49ee-9993-44c3d4b441fc","block_type":"box","text":"II-44","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"003e61e0-b585-40e9-bb73-ff68494d360a","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a8d5ced8-cdf4-42e8-ae7d-23146c72014c","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":89,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"e6ab3eeb-6bd8-4ad1-9ccb-0fe766ef8928","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":89,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"1199e95e-8721-4bef-9203-2545811b4e20","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":89,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"f065588c-bae6-45de-a4ee-52a08f82346f","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":89,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"aa71f1a9-f948-47d3-8937-8d6f62fe948f","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":89,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"3dfcbab8-68cb-414b-933a-bc867df5ab2e","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":89,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"10139563-83a7-4fed-aa81-5376925fee2a","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":89,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"28612ef7-cb5d-4f96-bd11-34651ac8967d","block_type":"box","text":"Suspension Risk.","page_number":89,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"2b2250d3-8246-4391-a244-20ecec85aa82","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":89,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"c050159a-7516-4ce7-acd0-69b9e4b0b3e8","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":89,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"03797f53-b70a-471e-8786-b63430929113","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":89,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"b5dcd65e-8b24-463b-824c-c2fc59f79b03","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":89,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"d545540f-242c-45fd-b884-709866cdcd59","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":89,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"febf5a29-8eef-4fd0-ae83-39c967c4cb1a","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":89,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"759c438c-ed90-4362-8985-50871748122e","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":89,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"b118d2a0-6ebc-4429-8f25-e9a0f18d6fdc","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":89,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"83b7c049-4bc5-48b9-9472-0659b43e4cdb","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":89,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"d8168c7b-8853-4318-8041-41b49329ff12","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":89,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"d6942711-a2ca-432e-862b-c308d5e65792","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":89,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"9251a0fd-d29e-4c5d-8855-19e38496dc24","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":89,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"757d0250-6bcd-4257-88f5-9d801139f616","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":89,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"e04368da-8f8e-484a-9270-f73c14ad46d2","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":89,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"f74c3027-0b20-4f2b-9e35-cbd416192126","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":89,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"915a2863-4e14-4943-857f-640bd178ebde","block_type":"box","text":"A Fund may invest directly in the","page_number":89,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"bfc6c582-f7be-4cfe-a8be-46d337441068","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":89,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"c77fd507-8259-4582-a83a-58db6a2952d6","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":89,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"23f4e613-e700-4d80-95c7-3ab9ba031cb5","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":89,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"d31977b1-4bd2-4e3f-8624-5e58f3526108","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":89,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"8a9d60b9-1d7e-4fdb-b564-c68a6edb902c","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":89,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"84a6b2a1-164e-4485-9732-fe388d8f9395","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":89,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"d9da9f90-07c9-4b54-944b-ede1e8472ec3","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":89,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"c68d0b34-4986-4996-a7f7-0a890789a9ce","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":89,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"330388ec-37d5-41ad-a884-7526f4ad4a12","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":89,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"31e5944e-2c0a-4153-98a3-bf6066f98681","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":89,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"715b8876-c131-43fc-a719-4f73e237ef44","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":89,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"849bc9ff-8b50-447f-a4e4-8284a8988c93","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":89,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"769ecd4f-8a1e-432e-97a8-97b91c66ebea","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":89,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"ebfa43b7-d4ce-4f06-ad46-187b0fda1c9f","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":89,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"4f6d0a68-b578-49f1-8810-9c0fdb0083ad","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":89,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"f3c00222-3159-4623-8a71-01f170777836","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":89,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"062a99b2-e5f2-4593-af31-46e8a9bdbc63","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":89,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"2abc146a-f7ee-401f-92fb-6e66d6979dd4","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":89,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"e0ce571a-daaf-45bb-9723-8fa64bc6d9ed","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":89,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"ff1256a1-67ec-4b72-8f07-0253165ff191","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":89,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"c75e04a6-d729-426a-950e-11bb72c57456","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":89,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"d2a3eddd-bfa6-445c-8c4d-c1513d9fb442","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":89,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"1ea558cd-ab46-43e0-bc15-6556ad280196","block_type":"box","text":"i.e.","page_number":89,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"38d4a14a-027c-46ee-bd5a-56ddbd78f31a","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":89,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"55e5adab-5212-46db-b4b2-76d13e357bf0","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":89,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"21abdf0d-3307-4c2c-881d-73cc61ea9f33","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":89,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"5642a458-30c6-40e5-a7e0-2e78ccdd09ce","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":89,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"7933c434-9221-4fcd-b302-4c9b42a6194b","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":89,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"fee19b8c-8b69-4519-b331-4f05e52f1045","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":89,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"4fe9c4c6-dcdd-46e7-b84a-a99def86da46","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":89,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"61f8c2d7-2310-4d2a-bb55-cbc035138b28","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":89,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"47572263-2609-4418-ba5a-46b0988da261","block_type":"box","text":"par ties.","page_number":89,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"bb11595f-c667-4cb0-83e8-9186b14f5573","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":89,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"47d72143-be5a-4824-886e-25d1b02f42e9","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":89,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"038100e9-147b-4325-88a9-f50524e5cecf","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":89,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"55e01130-f089-42c6-8013-e081f955c299","block_type":"box","text":"II-45","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e3c7a31f-ea12-480c-8586-c11eb35c20ce","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f89935f4-3621-49c3-9e6c-feaf39d8cad1","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":90,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"89894889-a0d7-4529-8adf-6ec7fd3ae0bc","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":90,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"c3663237-53a1-4897-b721-8d069f7a69b2","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":90,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"29601dba-22be-4566-aee2-dadd55785c42","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":90,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"aa8153eb-105d-4774-bb76-2ac0be207bcb","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":90,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"bc09328f-9616-40ec-8aee-0fd79f84d3f1","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":90,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"0df5aa29-dd4b-4884-9e5f-c8c55eca5cf6","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":90,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"7aa7ad26-1386-4e3b-ad7b-4e2be26e4843","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":90,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"d055feb9-ee02-4a28-b34d-b76765e5325d","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":90,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"c8129ee8-873f-4434-a541-f710d892f26f","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":90,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"fd90313e-c1e3-4893-bade-96f6a2981a75","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":90,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"8073520a-1dc2-42ce-909f-57cf4501a722","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":90,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"71226aca-e62c-47c5-b474-58ba0ca0dd59","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":90,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"50c20348-b327-4e1b-bdaf-333b08917b84","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":90,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"fde8e84b-7c13-44d3-8ffc-626f5a8462ce","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":90,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"1716bc15-a70b-4023-8006-ffa517a6733e","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":90,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"f29cd7d3-924a-4c79-a7e4-2ed5d542e73b","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":90,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"aa51f836-036a-4496-888f-8c1540d3de58","block_type":"box","text":"per formance.","page_number":90,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"b3b2566f-dc44-453c-9ebf-512ba431b888","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":90,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"73e62627-19b8-41a5-96c1-7956b43b3bf9","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":90,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"951f22c4-e92b-4c2d-838d-0d0060c98599","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":90,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"5bc5fa08-3ee6-4fc7-ace6-015101b957fe","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":90,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"936ffbe0-f25a-4f47-b06c-098f9f2603a8","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":90,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"735803d1-f164-45cb-91a8-54d2c82e2312","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":90,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"1fe0d82b-11d1-4a5b-a96a-4b22e60cddfa","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":90,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"530e038c-6931-4cbd-b7b8-637279146c02","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":90,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"42fcff94-4131-4e13-9d85-3ec09d07ffe9","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":90,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"b46aaad5-e956-41d8-8f49-55d0a5468d2a","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":90,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"cf16dfb9-5cef-47cd-bd3a-d4c970e19aed","block_type":"box","text":".","page_number":90,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"c231ebc6-d4b3-4604-8e6e-6e0568a493e9","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":90,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"8065fc3e-b6b6-42b4-9a0a-a61feb724744","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":90,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"f8ef8fe4-0ab0-426d-a053-4d2c6c949943","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":90,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"fce60e52-e2fc-486a-8de0-cb85a8f3aaec","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":90,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"c949f189-bb68-43df-80fd-f8b30d47f92b","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":90,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"aeeaf90f-0b93-4fa9-964e-a17e77f8ff66","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":90,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"33ba1e58-f7a5-49de-99af-353c1b60a1e2","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":90,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"08e602b7-836a-4566-bc03-d9a85129e180","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":90,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"ec81fb2d-09b6-4496-9c2b-35bf140baef8","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":90,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"0bae6e4a-b8f9-4588-b605-e7e083b6d57b","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":90,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"e512afca-6dfd-4065-a2cb-abe02475b866","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":90,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"b0283199-ce2f-4e11-9dbc-db2ac5055f47","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":90,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"2893944e-75d7-430d-922c-04f21f1533b4","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":90,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e7a0c4f1-c8a7-4362-9906-6774cb37bcdd","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":90,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"de265de8-350c-4bf5-89f0-02c8187e664f","block_type":"box","text":"without notice.","page_number":90,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"f59300cb-c61f-4f21-b106-145cf77e153a","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":90,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"b4bc2f2f-4fcb-4cfd-848c-7d3a5d0238ca","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":90,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"b5beab5e-3851-4eb1-8bb7-703ca170f1bf","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":90,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"39236742-825d-4bd4-8e8f-62fcafbcf4b2","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":90,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"07dd95e5-2dcb-478f-8131-ba5e6466fabc","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":90,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"f417714d-b1b9-4898-b6f4-1237011c8930","block_type":"box","text":"December 31, 2027.","page_number":90,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"4e473704-4fe8-4fc6-9482-3d2f3e6952b0","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":90,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"1ee9ac16-79d7-447a-a2d5-258581fd6b41","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":90,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"670df2d9-5514-4eb1-9846-bb37826b95bd","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":90,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"e3d626e1-0e8b-4af0-80b2-b43c85551d0a","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":90,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"abbf30d6-2535-4e68-8866-a173a5b08443","block_type":"box","text":"II-46","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"465c10e5-101a-41ac-aa9b-33d95f5439af","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2bce7c65-615a-4044-ab5a-bb22f4541384","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":91,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"0c4a6fac-5a0f-43af-a27d-eae8b8f6b801","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":91,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"e7e9051f-ccd7-44e9-b040-7fd5bb3e7e69","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":91,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"16d9b9ca-6e09-4606-a7b2-9e3059e082db","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":91,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"4f2217d9-085a-4cfb-8876-e2673aecc816","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":91,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"d54d57bd-26d3-445d-b253-d73ba88647aa","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":91,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"722b51b3-1b4b-472d-b90b-16cab317141e","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":91,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"4127d2ca-7ec6-40fb-b899-d924d45c638b","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":91,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"7cc0967d-c790-4395-9384-c47ae8e07e48","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":91,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"6d5dee9c-c265-44b2-986f-650976fd9b72","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":91,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"cf8ffd2e-423d-4e69-98d1-53accfb73af1","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":91,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"3f5c3cea-c25a-4061-ba56-1708753f154c","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":91,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"4b2a8ce8-554f-4cb3-a79a-5aa1f997c2d5","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":91,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"9878ba5e-9848-4099-8cc1-71dd17cc6159","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":91,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"6434a1f8-5b62-4dd4-acce-31c51e20bce9","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":91,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"a1a757c0-64f9-4946-b9fc-3bf86e63491c","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":91,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"caa924f0-e36e-4617-9cf2-cb223fc2ff60","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":91,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"ec84d212-b508-4798-935a-ae3ce0b34349","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":91,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"b523db04-8c08-4909-b5ec-8e77d2b12279","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":91,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"d3c69c58-bbe4-4a14-a03e-7bf85be40065","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":91,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"1690fe42-8b18-429a-b391-ad6e483b7b10","block_type":"box","text":"the PRC in notifications.","page_number":91,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"544a26e9-66c1-46c7-90d9-3eaa2c8c7375","block_type":"box","text":"Investment in Other Investment Companies.","page_number":91,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"7d745e64-e8d0-450a-b3a3-e24407f41fc2","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":91,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"a8a2fa89-54da-49ba-913a-2410c37065ec","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":91,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"f4698e29-afe9-4664-8fc0-1f9e66b28d1c","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":91,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"c2056e1d-81c9-4f94-a11f-35f198657ac8","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":91,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"01cb6815-bf22-46d6-b4cd-2817a8f6b869","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":91,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"043f4abd-4d98-4f12-b366-8842092f2433","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":91,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"2f48d252-fb95-41e0-a82a-ec6888eebd73","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":91,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"ab3424ba-b4b5-45b8-93aa-c81cd6c79e5c","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":91,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"8ad90a3f-bc75-47cf-a817-70eed5ad1939","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":91,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"3d8e85b0-8344-4acc-ab23-79aac49b519f","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":91,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"c6f92d0b-2f70-44e5-8677-c559c595abc5","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":91,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"4c6c6032-768b-4689-a2d2-b16d986dbea7","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":91,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"5b8b011b-36eb-42ce-ac53-f0f6891e1b07","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":91,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"62532dac-8d57-4635-9766-8deb6e4c6547","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":91,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"a1c68aff-d805-49f9-a8bd-e3b18c1e86b9","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":91,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"9399b51e-d485-4c22-8ca9-87e676a4f08d","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":91,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"a2d3e1f8-b073-4e0e-8ba5-6329bd96ea77","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":91,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"9387ffad-c9b0-4cc5-a67d-2ba1961aefc5","block_type":"box","text":"subject to cer tain conditions.","page_number":91,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"70ed638e-be9e-49ed-afe8-c78aa9484e45","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":91,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"bf02bb77-fcd6-4f01-9ddb-fd18d0a5f8ba","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":91,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"99043469-831b-46e8-9302-eff3ea9026b8","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":91,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"041d55bf-b281-4d8b-a587-bc3525ba8dda","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":91,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"67f35458-7114-44b3-994d-cc043bd4399b","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":91,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"3ce7cbe4-7fea-4e2e-b372-edb7e2bcb3dd","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":91,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"d88f617e-f6f7-4bce-8860-4944e6becbe2","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":91,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"f7af512b-a265-4de4-80f2-34ef6cbaa243","block_type":"box","text":"loss.","page_number":91,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"7046d5c8-bb00-4878-9966-3d1960082dce","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":91,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"7d0278e0-b39b-43bb-b088-20e6d653034e","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":91,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"68fd43cc-c112-4709-8a24-2890f03c556f","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":91,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"6ff0161b-d18d-40d0-a2ab-e3f5bde2d6bb","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":91,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"6f3263b9-ba25-4535-a8e0-3c21b58f7e6b","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":91,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"b8034f9f-f514-4959-922a-3e4b82229cd5","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":91,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"c32bd380-af73-43e0-ab0b-85d9895ccc71","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":91,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"b2ff16d9-4d4a-41a6-99b4-44e23d8c8754","block_type":"box","text":"II-47","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8960604b-fde6-4094-bf67-aaf2cb6a6721","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"efb7adae-7e1b-4288-aa3b-6faeda7f0174","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":92,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"9ae5b697-f178-4436-9a91-be3b51bd011b","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":92,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"9e04227f-7a8b-4a0b-9487-779a5f2a6ffe","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":92,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"dbde112b-f28b-466b-a288-65916ca4a81b","block_type":"box","text":"assets.","page_number":92,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"5facdf1d-f250-498f-9d09-14a6bda94c4e","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":92,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"75c00f93-0e7a-4e00-bd73-169d37f572a3","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":92,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"3deae6ff-3f0c-4fa3-af81-4f20e40a1239","block_type":"box","text":"e.g.","page_number":92,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"039338a6-980b-4400-86a8-4ba8d8654048","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":92,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"5e8e505c-9fbd-41f0-ba41-ba31202e7af5","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":92,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"2c92b890-d27a-48b5-9a04-b2ed8e146cb3","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":92,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"ffe2c41c-3078-4380-801b-66794dd3d98f","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":92,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"b0c6b52c-a477-4d1c-b29f-f3bccb19aa26","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":92,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"7bd986ec-e5bf-409c-9ce0-82692d25164c","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":92,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"7e5709ae-b4a4-422e-98b7-9d4de204b1e2","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":92,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"a2087e8f-f218-4a6b-b524-838dc6c41803","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":92,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"63fe8d02-0e31-461c-aeca-5b17434e60e4","block_type":"box","text":"countries.","page_number":92,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"ae1bfe08-4b71-424a-9b35-fb6adf1f6708","block_type":"box","text":"Issuer Insolvency Risk.","page_number":92,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"4be078d5-d129-4cc7-b8c0-43a1006b57ee","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":92,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"3f46440e-5ec4-4d9a-bc89-8bee474ede19","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":92,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"47e15bbc-17b6-4d59-9686-2f43678d3042","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":92,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"80fd0cb1-025d-4993-b930-1a1cd377b955","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":92,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f40955bb-76fa-4ac2-b631-092c0ed65cd1","block_type":"box","text":"issuer uncer tain.","page_number":92,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"d04539ec-bfd4-4af4-af25-f06be9ab2d11","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":92,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"cd9bf141-203c-448a-a618-beb38bbd4ac9","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":92,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"cebe432a-8fe4-4732-80aa-fe4fb1908ca4","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":92,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"65c088f3-10e0-41b7-afa1-f44b2f0b7bd6","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":92,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"2e28bcc3-84f3-44ad-a80e-afd0b38c2c05","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":92,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"91835342-e7b2-4165-a180-335322e5ced4","block_type":"box","text":"eventually be satisfied.","page_number":92,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"29cbf25d-1a9c-40df-9b04-3c8ad656e60b","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":92,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"51da2147-4b0d-441a-bbf2-23bf48b4a394","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":92,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"ff4e8ae1-4672-4a10-a283-cc75b1f72de7","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":92,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"dad98412-3aee-474e-8ae3-08f79829a011","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":92,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"528bdeb3-11b4-490d-8fc4-3fcbd954be36","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":92,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"8535bccd-47d0-4965-8247-e1954ab64c78","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":92,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"32376e5a-41cd-4f60-af66-69f2497ad22b","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":92,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"3d7b49f4-4a57-41dc-b515-3582182648cf","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":92,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"0bd29a08-0c16-4fd8-9cbd-a5fcd6833955","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":92,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"89097972-0b11-4e44-9502-efc4b54e0dbe","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":92,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"72415550-86d1-403e-8ab6-33d4b96add43","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":92,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"2bd60fdb-e8b3-4617-864a-6f4be41ee3f6","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":92,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"04efa642-1685-4bc8-8606-4a62ea6871ef","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":92,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"92a0bcf0-bc2f-4092-b4d9-4e1dedf23541","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":92,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"86a08192-3cc5-4a04-b3bb-09e94a7775b0","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":92,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"b4b8b967-cb6b-42d9-a907-95fa29de73a2","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":92,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"90a5ca2c-cf3f-4c05-807a-e9a1aa2ca905","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":92,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"db42291b-9b5b-4dc9-8f40-fef83a18cee4","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":92,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"d71272b2-c70b-4d6c-b432-850564a3df5f","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":92,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"fd7bacb2-7dbe-4290-bc30-584f238cf599","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":92,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"1ce398fc-d2f5-4845-ab32-d1b4c76fd817","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":92,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"54c957b7-7312-48d0-a214-fd672dc4ae40","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":92,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"3088b39a-8211-438d-800b-b86bb44cf2d8","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":92,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"2a940a3a-04f5-4b54-a84d-31dff0e017d0","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":92,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"0f3af232-a37a-459e-a85b-1d11a24a2417","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":92,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"b43b6571-bc47-4e2e-a2b4-7dfa62a6d75f","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":92,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f33170e9-fe44-4979-ab0b-d35a717073fe","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":92,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"1aef57b6-402e-475a-8862-91f5ee7d8052","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":92,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"98fbd035-fadf-40e4-a7ca-1ddca071b544","block_type":"box","text":"that assumed generally by an investor.","page_number":92,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"eebf443a-1c1e-40ea-a376-e0ec539eb8ee","block_type":"box","text":"II-48","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d378dbb-cb4c-44de-a364-14c83bdf1337","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f34f736-3a5c-4bf1-833c-1a79a1d8f047","block_type":"box","text":"Lease Obligations.","page_number":93,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"d228bc46-0311-4e27-b893-e5a86ba4a114","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":93,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"684d796b-4a00-478c-af4c-e5341c1bed10","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":93,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"0285e00e-9085-4efb-9cf4-5fb7a528c26b","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":93,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"147ff4da-5f5c-4b1d-956b-3842fbba99dd","block_type":"box","text":"Life Settlement Investments.","page_number":93,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"06fef04f-49b1-4554-a380-8ce1fccb1593","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":93,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"78ed1fa6-b18c-43ff-8b7d-74c27e5a0666","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":93,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"bdcabe00-e994-4a27-8747-4bd0a2c03cc4","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":93,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"3d249605-8142-45c8-91f9-303f8078fff6","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":93,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"82ddee4e-95e1-44c6-ab30-43d11399676f","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":93,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"ad7d3fc7-d4aa-4dcd-b1bc-c6c377e8680b","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":93,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"7be7cdb5-6729-4b51-b503-e9cd1ba8e426","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":93,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"946f9ebf-76f5-499d-b2aa-bd6951745dcf","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":93,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"27520df4-860b-47de-bc2d-655eb7b98994","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":93,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"16c8a419-f060-452b-93eb-ac8d1eab20fd","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":93,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"42aeba4c-c2dd-4a4f-85bc-956fcdb589a9","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":93,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"a0c9441f-6e51-44a5-b71f-5008c86a371b","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":93,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"829eaaaf-b360-488a-b06c-e06d5a9fc234","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":93,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"73ff0f92-1b0a-45e3-b87c-651accad1f82","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":93,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"c9ca9849-114f-4d08-85d4-05b3f3b8147c","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":93,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"266edd51-1b32-459f-88a9-d14755ea568d","block_type":"box","text":"Liquidity Risk Management.","page_number":93,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"8e068840-a336-4ae4-9815-ce628ccbca8b","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":93,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"4cd3e256-7def-4eb8-906e-6d86bfc74d24","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":93,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"59898482-f160-4a9d-8248-085eaec7669c","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":93,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"c5476b0a-b67b-41be-9764-1823292c57d4","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":93,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"fb5139dd-f90a-4d6f-a629-b4b4ed7b3e9c","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":93,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"a9c00fa5-8c7e-44bb-88db-2f76c3e674c0","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":93,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"758a5c7b-e329-48fb-85e9-6475eb5bd887","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":93,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"46c98eb2-6848-41e1-80ce-2ec3b0a00dc8","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":93,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"c5d976a6-d544-4c02-bbc8-9e176047a690","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":93,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"17c5c8c5-ac9c-46ce-b772-02d5e2b9169f","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":93,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"1af4e672-6c94-41c1-9eba-059ca306047a","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":93,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"4c8c047f-f732-4dd9-9891-e32ee495e8e2","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":93,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"d4eaaff5-e00c-490d-9e34-f996c5159c6f","block_type":"box","text":"Master Limited Partnerships.","page_number":93,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"71997244-cdfc-4b66-8186-15dc28b00c1b","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":93,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"e7e58f00-f189-43e4-a0e1-a6bcd7715980","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":93,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"9e310b6c-23ad-420e-9c75-81a711abb107","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":93,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"737cdaec-b5dd-4ba0-afe0-513566735008","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":93,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"526a73eb-cf25-41d0-b2de-0ec87d350507","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":93,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"dbfb5801-8d48-4217-8d28-8d2cb16380ee","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":93,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"f05428ec-4466-4c75-94a5-857db4be8a4f","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":93,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"2f89a7ae-5488-433a-a79c-a160598648ba","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":93,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"6ab608f1-e010-4598-989c-f8cc7e291131","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":93,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"d42a15ee-b8f4-4207-9f8c-95aadf84a21b","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":93,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"b0a357c2-f5b5-4989-8bad-aabdab78e6a2","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":93,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"ac57c8ba-7516-4d04-b05b-41ba32eb39f2","block_type":"box","text":"in the par tnership’s operations and management.","page_number":93,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"cf0e9975-2018-4320-b81f-2959fe26d3cc","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":93,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"54f35341-2d61-48c5-8c03-daae8b2fb126","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":93,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"ae6e606b-967a-405a-94c1-0e942fbf250c","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":93,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"02551b79-8b55-46e5-851b-1438055f80de","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":93,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"0efd3e3a-6699-4a5a-af74-a186f37b8183","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":93,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"2a729ab8-161d-411e-988b-38c2ab1e3afd","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":93,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"a098229b-462f-4b0c-a391-3e08991b7ff3","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":93,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"080a41cb-b077-43f2-bd1c-eaba904f8a3b","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":93,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"cc5a1345-fd56-47bd-9786-d5d7534e4ebf","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":93,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"1097195e-5840-4701-b289-6db65027562e","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":93,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"e956d78b-64ed-4a2b-8424-eedc96470dce","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":93,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"ab0e9dfa-a3b8-4621-b700-c1572d6eb6c7","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":93,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"e7f30a49-fad6-4bcf-91b9-87be811b6e33","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":93,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"954c81a6-fd7e-4b45-9d98-f0268a1fb9c9","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":93,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"dbc3e3f8-7c5f-4185-bd03-78e39e10fcdd","block_type":"box","text":"II-49","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2d8b3e94-1af6-41f0-bf21-bbd878b203b4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"34fd5c86-7af9-45ef-843d-e46abe2c827a","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":94,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"d8b24704-d531-4a16-a193-87a123aa1dd0","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":94,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"7159d6fc-371b-49db-8c44-68ae26cceef5","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":94,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"9e697012-7dd2-4c8a-8948-7fc3c8ba282e","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":94,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"8ccd2d29-82b1-4d37-9b92-648effb265b8","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":94,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"148b2b5f-5179-4816-8b3e-f3fa270bf2ed","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":94,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"91511b86-9ca2-41df-abe3-163fd8b82771","block_type":"box","text":"Merger Transaction Risk.","page_number":94,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"b326f226-8435-4bb8-b69b-ca686794cff4","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":94,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"d9a6e146-8ab7-4d11-992b-d9992dabb807","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":94,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"59439710-af98-4881-b6ec-5c47e3cdf543","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":94,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"812474dd-9a1e-4e34-a020-b7e6deb8e03c","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":94,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"513ae41e-9932-494b-8613-52bfe8b90621","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":94,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"0da7a3cf-f5c4-41d4-b784-c3b5737da4b7","block_type":"box","text":"the Fund and may lose significant value.","page_number":94,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"cf0fb050-60f2-48f3-b5ba-028572e91cd3","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":94,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"b67c6190-aaca-499f-84a8-1e24ce305d69","block_type":"box","text":"Cer tain","page_number":94,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"d4b32cd7-a033-4f3b-aa73-546194db726f","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":94,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"581a124b-9feb-4cdc-aa26-021dbfc924ff","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":94,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"41f9e0d1-790c-4512-8755-2a71f265526f","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":94,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"6e602e9b-e5cb-4518-8c33-0aa41320b1bc","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":94,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"b955ac53-0461-47db-b9fc-e22e1e10aa99","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":94,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"194afc76-f784-4bfa-9c67-a83941c2a562","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":94,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"df9da55b-852e-4d78-98dd-2e216e07eac7","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":94,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"c207f1ca-e629-4fde-9e53-38799d9505ca","block_type":"box","text":"branches of domestic banks.","page_number":94,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"aeb13f8b-8036-497a-969f-3cb86c302d45","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":94,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"d4d99c96-49ee-4693-9d6f-5ba15851939d","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":94,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"12eef42a-d2b9-431e-b5f0-38ae2547a29c","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":94,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"0a4d0c22-dae3-4d4a-b489-bcd28a3a9d13","block_type":"box","text":"paper of a foreign issuer.","page_number":94,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"fea58637-0ef7-44ee-a806-38e18f78330c","block_type":"box","text":"Money Market Securities.","page_number":94,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"182f11e7-2cc7-4879-9c6e-618e55cf719e","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":94,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"88345829-802d-4f1e-96d0-7f0999ca26cf","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":94,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"f81a9629-a54a-487f-9f2a-31f53ee05443","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":94,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"1754b150-76b8-4d8a-a8af-05229d796fd7","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":94,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"fd603c6b-ce14-434e-8ff0-22a574cbe153","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":94,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"f0e0a4e5-e50c-4e0b-82a5-13a077c2e8f6","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":94,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"45717beb-8207-400d-9556-92c7a09a9708","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":94,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"b4d4ef9c-f4df-43da-a3c4-65723fec00a3","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":94,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"f535a245-0aa0-42f2-a73c-9c47255f6e07","block_type":"box","text":"agencies;","page_number":94,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"39ec50a7-ac29-42ce-b570-ab60f32e7039","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":94,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"dfd46614-c535-407f-9880-3dbdec327293","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":94,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"dc837bc6-0c4a-45a1-8ef2-bc726196a839","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":94,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"47ce8f6a-6a20-4e93-9975-f6be51727670","block_type":"box","text":"obligations and credit card receivables);","page_number":94,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"0881d2f0-4c8a-4031-b771-c2a0cc022d94","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":94,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"64d16be0-688b-46a2-bb16-02dfb2075f93","block_type":"box","text":"authorities and related custodial receipts;","page_number":94,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"32117d72-70a1-4f39-b8d9-e4cbedf742ad","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":94,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"f0999a82-9b1d-4186-b789-b7191e58d750","block_type":"box","text":"agencies or authorities;","page_number":94,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"68ad3174-ead3-4244-b5bb-0621eefbba31","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":94,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"b6e130a5-c99e-4dd2-a34a-cb99eab505c5","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":94,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"e70a6799-3dd9-4ce1-9898-aff7b4df6347","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":94,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"6f51c878-7ed9-4e13-ba4a-4e8d6ed868bb","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":94,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"665f93fd-db18-40c6-9d30-b74c30f02f0b","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":94,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"005c713e-168f-4091-af8d-78695884397b","block_type":"box","text":"States;","page_number":94,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"4a320258-1f6e-4d09-a2b5-572f90959a30","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":94,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"7fe71ac2-eb92-4b20-be60-403d6e1ab1d0","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":94,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"bbffc4c1-073e-4e0b-942d-e6abf4633e6e","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":94,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"2d53e49c-bb9e-4216-a5bd-6f5e10c2c023","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":94,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"33ee5780-904b-40a7-a714-ccc873ed373e","block_type":"box","text":"II-50","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c5acce17-d8d9-4435-a8c6-d4038ee0b0fc","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80b7bb1e-f74f-4c7e-ac5b-a056bbfedcf5","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":95,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"ce003b13-5c02-47e6-b715-bc567cb75669","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":95,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"57ccc7f8-cb9d-4831-8702-dd68cd744ed2","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":95,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"2b8beac8-d633-4fa6-a2a4-97907b9fdb72","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":95,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"b93eb1e4-7a36-4746-9d89-dd870b26eaf2","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":95,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"2ec0fa5b-b528-487b-8130-bcb7377e8440","block_type":"box","text":"States.","page_number":95,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"8ec668f8-5b42-4381-91c6-1328e97d3a3f","block_type":"box","text":"Mortgage-Related Securities.","page_number":95,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"29db0a16-5cb8-445f-b4ed-7bd5b42f9474","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":95,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"129b7545-ad85-4b01-8c12-0eb7e22aba4b","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":95,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"6eb98933-9fcc-447e-a34f-b78b41ea45f8","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":95,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"ffd82a24-7999-45a7-bd70-06c8888e0e02","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":95,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"06d7534e-7b7e-42c2-8fa1-25c936fb5afe","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":95,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"4be3e7d0-715c-4f44-af57-7f0d6e933f48","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":95,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"1adadd1f-8c89-4a3a-beb7-4be04ac302fd","block_type":"box","text":"maturity or specified call dates.","page_number":95,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"8bfbd7ff-87a8-4284-accb-6708bf119352","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":95,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"7daa86f0-2ddc-459d-8968-fd5ecdd80f6a","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":95,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"3a3f0b53-4fa1-4200-9f09-814aba0db0eb","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":95,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"43d57b10-cf4f-4ca5-a1e1-460f734603b0","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":95,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"66628de2-58f8-4a39-9c60-3a61bb4271b6","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":95,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"68d9acc4-0e46-47f8-843d-f03a0efa3c8b","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":95,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"6f6f6e95-f6ab-41f8-9452-2a978d9a858d","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":95,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"7c04f757-48e2-423e-b7b5-06405aa76e47","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":95,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"4097f80a-79ab-4269-8ba8-c952773c8b0d","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":95,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"7ce26524-d4df-4814-a5d6-379c75f8bbbf","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":95,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"308f59bb-90fd-486e-a2b5-33a330a08e49","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":95,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"1fbf2479-f6fc-41b3-a0dd-98bd072c981a","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":95,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"92e72e64-1fbb-4fe2-8c73-11080eb4fa23","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":95,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"753dcc4a-90a2-42f7-abaf-c0467791bb89","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":95,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"9b0a5415-e44c-49dc-abae-7bf782cc3919","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":95,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"a40bf2bd-7108-47ba-8830-f421c367e573","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":95,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"a028122e-3dd0-4673-a81f-bfa52c06737c","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":95,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"a90c1dc9-4497-4be4-b064-295d0411585a","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":95,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"0755835a-cd80-452f-9369-c5aa6a776ffa","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":95,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"645a1b4f-b8af-4239-9bbf-ecb2b1912bf4","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":95,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"ae57c9ad-2990-4564-92e9-21012950134f","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":95,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"271b04b5-c6af-4b66-b3e5-c9a64b2433eb","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":95,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"2143377a-9c70-4a39-96b2-91ab7988a3bc","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":95,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"ce1e0ca6-1af2-40d5-ab19-eafd85b18e8f","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":95,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"422ea143-1c2e-492f-9122-14b9a713a1d7","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":95,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"7cfd9efb-bddd-46d3-97ef-7e5d250cc580","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":95,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"fea2dd52-4bef-484d-aef3-8f33c90ca2da","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":95,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"a76d55e0-55bc-41b6-b00e-71c7bf6cd2b1","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":95,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"7cce157e-74f8-4fa3-a612-053b38677319","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":95,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"c8d97409-a356-4906-98a3-ebef8b8954f2","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":95,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"d6b6bcd0-1d8b-4ec5-82c5-055550f795fc","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":95,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"b770ac0f-d1f5-4464-9d38-34f78a189dda","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":95,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"07186a7b-6d2c-43ad-971d-ecb34d224460","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":95,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"95d131a8-07f1-46d1-93d8-0fbcdc225340","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":95,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"259704dc-41ba-4448-84f0-2fcf32f76386","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":95,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"576be42e-e11b-4891-a72e-c07366ac44c1","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":95,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"72fbb7ef-9653-4404-93bc-9e98ab0a3ea9","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":95,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"44eaa036-d408-464d-9a4e-4d4b6862940c","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":95,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"cf0d6bac-0855-486a-92b4-fba44a8f2774","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":95,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"dbd6fe5e-42ea-49c1-b213-f01025511b04","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":95,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"437fa036-6ee0-46a9-b79b-384ab98ec33c","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":95,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"26fb0eb5-8c61-4a06-9d76-bc190ab27979","block_type":"box","text":"II-51","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2c0c2fb6-2fc2-4d1e-b03d-9450b6c6d1ba","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6c806a3-1b6f-42e0-a332-0a861e965391","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":96,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"322a0a35-5e04-4510-83b1-707a91d2616b","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":96,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"6597f430-5f54-42e1-93e7-5f6c5245b40e","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":96,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"f88ea4c0-ee06-4350-9c09-6105ff6fd8e4","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":96,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"6efafb5d-efcb-497b-af58-ff9a9117d431","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":96,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3e4db92b-7ab5-4a6b-b9a2-a1847d7a0cfb","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":96,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"e6b00681-9478-4cb6-aabc-160572306e44","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":96,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"82a1fb00-9b28-4ad1-8f96-eb46e4bc89e7","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":96,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"a070ef2f-f98b-4afe-a5ee-50d3b26a0b3e","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":96,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"19f2394b-2380-4142-8ed2-61b0284a552e","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":96,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"967d726c-6271-4c84-82b6-8f07a4ba14d3","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":96,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"c64d7452-3ac5-4354-b5f3-a2089410ce9e","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":96,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"1257eda7-2783-4cf3-8888-c12a67219da6","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":96,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"21c74381-9702-4e29-aa9b-7776a77b12bb","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":96,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"d863604e-bdfc-4194-854e-b5292dc5e72a","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":96,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"1b7e28b9-e463-42d9-b11d-250a7444c414","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":96,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"0e428125-4b4d-4257-89a4-982a7d9c554a","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":96,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"38fbcfc8-d604-4450-8601-0587b32e8446","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":96,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"c55b6344-a29b-45b5-96c6-22052e1832e4","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":96,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"b81d20b7-16fc-45ff-bc0b-6d2b11ee8243","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":96,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"850f163e-d6db-4e3c-bbfd-f094e64f9a21","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":96,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"ce1fdd80-c274-442b-a009-6b9203a000a6","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":96,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"16069b7f-308c-4302-a852-14de32de304b","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":96,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"71c5f5eb-3e86-4f74-9b3f-6a1161791469","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":96,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"f65fc328-1a0b-4ad5-9d24-cdcce6074432","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":96,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"1f230e4f-3bbc-4a91-a988-356805e20c9d","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":96,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"43138ee1-8404-4ad4-a512-81ea8728088b","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":96,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"30d81005-a11c-4a70-b0ce-01030e819cc0","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"bb6f5d9b-3b28-4e42-b287-a9750664edb4","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":96,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"4ed9384a-1b75-4d12-a897-e673f99436f9","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":96,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"2813ee5a-b82e-434c-9f6c-2c1fec34f43c","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":96,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"c191b0e3-0a87-46eb-b252-dadb787ad458","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":96,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"e89102b4-6fed-4a75-a6e0-e0eae409e50f","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":96,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"bc0f58ef-e558-4a99-845e-69bba853c5e0","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":96,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"a4509914-41ed-4657-8c54-1c70a7ab9aa1","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":96,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"c4935f46-03dc-4a37-8be8-34e3bbc63336","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":96,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"43bc44a2-9a4d-40cf-9ac3-22473c36d980","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":96,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"03788e56-18b4-400c-ba9e-ad2919b90fb6","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":96,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"81e9c530-f593-4a80-9374-0a5012d8cb94","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":96,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"c71f5a52-099d-42f2-aced-6536359d3e75","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":96,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"80b16a8a-db32-4ff0-af52-a908df90ab41","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":96,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"127913ae-104b-4d7b-99db-f7ff2bcd1d3c","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":96,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"44f81b97-c167-493f-bdf6-045492eb497d","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":96,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"d3e5fee1-c0db-41f4-94b8-2edc16b47fa5","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":96,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"506e23bf-84fe-467d-8c44-8bbaf88a6230","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":96,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"ddf12658-9755-441f-bbc0-a6164c43f4b4","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":96,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"2b416b88-0cbc-4571-a2b6-cb5af63773eb","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":96,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"793971d6-453a-4d82-8a95-f50128917306","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":96,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"958618b5-2dfd-4d44-bb99-f8c10d99ab79","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":96,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"4fbb0f8a-b8a5-4164-926d-749112ca4d63","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":96,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"c9942821-7c99-42ac-920a-f777849ac3e6","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":96,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"8e96ff9f-99dc-4c78-a4dc-4b6002e422f2","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":96,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"95bcd555-cf8e-4325-89eb-384b2b702763","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":96,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"b8026587-482a-4b40-84f7-0abf8a67eb37","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":96,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"9991a6e2-ea28-4bf7-aadf-802e48d7226e","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":96,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"ff5e9382-1ca2-4f05-9df1-79a8e04e5c2d","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":96,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"c31a2285-95fa-4967-91f8-94de11f0149a","block_type":"box","text":"II-52","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05f06532-e986-49b2-8595-bb86fea0d95b","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3fe45ac-cfcd-4b75-b00a-db200938a706","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":97,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"edcd5580-6062-4d2e-a220-71b2df569a22","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":97,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"62d5ea86-1554-41c1-a63b-e2a085f9f0c7","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":97,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"1820e4aa-ffbc-4043-949a-66d7fa0e6373","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":97,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"223a24cc-f643-4d8c-b07e-9bd57c4a0281","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":97,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"ec4d56d8-96da-4696-83b3-208c5337738e","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":97,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"926da623-6c63-469d-8e34-b61fa3f0367c","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":97,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"712acceb-f3df-47e6-979e-86664760f224","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":97,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"65c226fe-307c-42d3-aeee-e5f0ba9a0da8","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":97,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"c5f7816f-c679-48b5-875f-28abf64dca59","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":97,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"409b70e1-5766-4f35-9443-230125a6fb11","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":97,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"eb52ac74-1caf-4880-9d1b-c9e5c7ed08e4","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":97,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"414bcd79-2a40-46d5-9e86-dd23c65031a0","block_type":"box","text":"of principal because of the sequential payments.","page_number":97,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"db2e3be9-d1a9-480a-acd9-48dc988eb2b3","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":97,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"07c51236-4a4a-47d7-89d8-efe7e18a4785","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":97,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"eecaaedd-3e60-44c4-9678-39b1f931d507","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":97,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"9576059a-ae04-41aa-93f2-a8a84a4b341c","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":97,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"8a7cca59-78aa-4fca-8264-1474fc6446f8","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":97,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"57871ad0-ff9f-410b-9712-a386db1ae11a","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":97,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"4305cc80-731d-495f-ae20-981e776d6848","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":97,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"9c02a7f6-0d7e-4f92-a8fd-304f8cb0be63","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":97,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"d8a4ed93-d365-4621-9a4f-69e304f932a9","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":97,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"1cb22dc0-fb7b-4810-8f15-6f2bde962243","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":97,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"02db572b-9d4a-425a-b5de-8fe70225a47f","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":97,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"56680f8d-fb3a-46dd-9083-389df940523d","block_type":"box","text":"securities of any single such entity.","page_number":97,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"63b68fc5-4062-438b-a74c-680a019b3fe7","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":97,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"d68af5e6-9b8e-4ec0-8526-7946466c4a2e","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":97,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"957b643c-186d-46e1-8c96-0009b5f6d3ad","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":97,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"c502d3f4-1b24-4aa4-aa59-76503c3a0f5d","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":97,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"4af06915-c7ea-4b70-8fa5-126124414f57","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":97,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"92f567ad-1bb0-4df0-b278-45a0a6afc983","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":97,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"f4f6fe9d-4703-49fe-9274-cd1a6d72f3f9","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":97,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"b0421474-6d69-48b3-97fe-8f5f2fda6707","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":97,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"de4f8f64-6cd9-4deb-a128-43d8e6e5b8bb","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":97,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"2652c0d2-9cdc-473c-b5d0-70d120062354","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":97,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"c960fd8a-f91e-4010-a3b0-6b356cf00774","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":97,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"633a441e-4fea-4d1c-a78b-f447df7b037a","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":97,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"304b2dd2-ad79-439b-b43e-6a543865c722","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":97,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"77500404-7bfe-431a-a70a-2f7687254e3a","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":97,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"3314aee5-7b23-4e8e-a18a-3e997203d037","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":97,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"b2da45b8-7b67-4377-b04e-667eb3f75aac","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":97,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"2e65f03a-e73f-4154-863a-a973488abec4","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":97,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"cfc5dfae-b97c-4489-a5bc-52a0d3728b73","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":97,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"3720c623-aa5f-462f-afdc-04426f79c9c7","block_type":"box","text":"classes.","page_number":97,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"a6c4fd0e-186e-4464-8953-657953a88092","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":97,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"22154812-68e5-4e56-98bf-b83cbd67a2c3","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":97,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"1421e700-9d2f-4684-bd9d-f24bc4e7365a","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":97,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"34308a0c-8c4f-4506-8e0e-4f25e3503687","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":97,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"c0b30a49-f8ff-47e3-80bb-9fb7a3ff72d6","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":97,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"672f7ba0-ebdd-4061-99ce-32c0415dd905","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":97,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"2a092453-4261-411d-911a-be97f2094985","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":97,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"52d05946-b0b7-4ec3-8853-4e302c5dacb2","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":97,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"7250feec-2618-4c45-9196-a1569c72e8cf","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":97,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"f4732922-c0bc-419a-99d5-4b237f79aad1","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":97,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"7710fe49-a65a-43bc-9231-e78107a8d48f","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":97,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"6b61e547-55dc-4a87-8db0-7f5f9af5530e","block_type":"box","text":"to a designated benchmark index.","page_number":97,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"8df77744-735d-4057-a553-5c33132ed5b1","block_type":"box","text":"II-53","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3859c181-8c2a-414d-bacd-f55b276b9552","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0204049e-3997-435c-a129-5d9aad9a73f7","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":98,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"f8563e8b-65df-423d-a63f-da18505bc02f","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":98,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"cb705791-c9f9-4c46-aaf9-acd515c84737","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":98,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"54762a32-dd59-49f8-bf56-3f4d06b19eec","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":98,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"ed5e5166-4c39-44a4-b422-148cef06fe3a","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":98,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"8d728358-b7ee-4ff5-82c8-d5ea04683fbd","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":98,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"ce6c8d1f-4fde-4951-96b1-952cf27936ce","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":98,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"c03e13c3-05a0-4e31-80b4-4f980b633949","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":98,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"94ff25c6-5640-4ddb-ab19-0185303daebb","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":98,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"914a2655-c859-41a0-809a-4b81f5cc3586","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":98,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"958f1e1e-7fcd-44dc-a09f-0adfe99c410d","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":98,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"5df16ba1-665c-4e38-baa7-b66a473dfe8d","block_type":"box","text":"CMO Residuals.","page_number":98,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"d301fedd-f94d-4af7-8f50-1ad29a7c2537","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":98,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"17d46b7e-0e97-4c79-bdb3-155acf667bfc","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":98,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"d0bffaad-52e2-4ee1-bee5-1f1c76ab1aa1","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":98,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"0a474f77-4ddc-44ba-b086-eba0e9de6df9","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":98,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"e26534a3-c2ce-490f-9a7f-3e2eaed4ea57","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":98,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"8db0d0b5-618b-49e1-b1bf-a48054ba9142","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":98,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"72622732-8b15-4c2b-82c1-5b1560627f47","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":98,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"1b23835b-3ea2-4b7f-acc7-da6c8c306338","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":98,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"97c292ae-c5e0-4fb1-87b0-ae1cfe6c0464","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":98,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"a04ad232-a632-4709-9421-ca85ff0617bd","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":98,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"cbc9f97b-cd20-48ec-845e-35856107d90f","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":98,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"14ece84e-a545-4224-9aa2-86fad9604fe1","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":98,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"43f07d24-adc5-4f4b-bc37-4de3ceb5df27","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":98,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"050e7803-eaa5-4578-b6b0-1ad10d3d39c7","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":98,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"3ef85a1e-b953-4e4a-b6ee-c84e0484a258","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":98,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"89e26098-9f64-4a36-8295-860172bf0d95","block_type":"box","text":"a CMO residual.","page_number":98,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"b8dc4541-d23a-495b-a8f6-5d97a14fc82b","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":98,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"99c3f2e8-e603-4281-ae2a-0356fd1f88fd","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":98,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"c232fe72-cbc9-4c67-bf9f-694629557ef5","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":98,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"877f73d0-5be8-4c32-86e0-db14feeab92a","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":98,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"ad4f4ed4-7b6d-4e1d-85c3-047641a34ba9","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":98,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"58b8d1c1-cf17-4a8c-8728-c8db16c4f9ae","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":98,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"817ff71c-d797-49df-b0a0-22c17e0eefd4","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":98,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"59c2d5e5-b479-48ab-b7c7-7c8c44eb5f1e","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":98,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"f778a0f2-782c-4c4e-a1cc-3ac81dc9b9c1","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":98,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"2493bf34-7fe2-46f4-9cc7-8564f3e7cf4d","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":98,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"0189d578-e832-4515-9061-8fd017c5bde0","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":98,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"7bfafedf-bc6f-43a8-b28d-21d627f22a4b","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":98,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"635ea47c-7737-401c-8e29-9ed856a43d10","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":98,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"12bcedd4-fcb1-45fc-8ab2-1296b6a40340","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":98,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"77402a55-1bf5-4c92-987d-da7f41676fb1","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":98,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"6103e4b5-f9f0-48a2-ab1e-a49139db9d56","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":98,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"7cedb838-049f-40ee-a7a8-b8b4875d2a37","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":98,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"056d4e8d-51ea-4fea-b157-294b2ddd9744","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":98,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"aacda8a8-960a-4093-ab5b-bb8bd71c87b7","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":98,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"4007fe84-960b-4aca-ae32-23c2bd9c9c6c","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":98,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"268bc4cd-88b5-4675-9d9c-bab268ca9235","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":98,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"6bc75456-e3cd-4481-b1e7-bcea15ea46e6","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":98,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"ed912934-b3f0-45d1-93d6-f0b163c1107f","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":98,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"218a36f3-2828-4ba8-bf58-e08ee2771412","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":98,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"3874fcf1-35da-4f9d-8229-d942582a1717","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":98,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"5dcc8175-8f20-492c-b225-ff54adad255b","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":98,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"d6092667-902b-48b9-8fe2-f0e972aa12dc","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":98,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"f0ffaca3-de3a-45a4-82c3-eb8d13257fe6","block_type":"box","text":"Tiered Index Bonds.","page_number":98,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"11b9c1c4-a7ba-42a7-a988-a3cce3d16a78","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":98,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"156cb5b5-b667-468a-acea-68ebfda965d2","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":98,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"03e9b981-36b2-4d5d-a541-157ed375d047","block_type":"box","text":"II-54","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fdb2f368-0925-471f-8ff9-1118b0b9f434","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"49392f71-31de-4155-896f-675a5c6543a3","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":99,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"30400f84-6bb8-46ab-8ccf-29812ee8674c","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":99,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"2cd17942-4c41-468f-9807-32ad56437762","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":99,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"4c79a4a0-7940-4713-b0d6-e9b77d5ec14b","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":99,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"bd8289b8-52a6-4082-b2d8-d0c83c5078d9","block_type":"box","text":"that of a fixed-rate bond.","page_number":99,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"30ff7781-e55d-4455-b68b-ae1e365d0644","block_type":"box","text":"TBA Commitments.","page_number":99,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"faaf1c29-4c77-4a66-ba05-e2e50a124322","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":99,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"a957f6d3-ad3b-486a-a92c-ec06a432fa1d","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":99,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"2979085b-a691-48bd-a018-03ea516ae931","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":99,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"26addcdf-2fe5-4893-a3ba-86a41c277b24","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":99,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"314d8ad6-fc19-4b40-83ca-954e6604a83a","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":99,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"afb0ed5e-e5e8-4f00-b46a-663b599fe2e5","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":99,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"ffa59b6d-3760-4018-a857-0424c1620379","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":99,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"d04b4d2b-760f-4a9b-ac06-10911824fe85","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":99,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"c77cdcd5-e3c6-4628-a1f8-5a3ae8d5e287","block_type":"box","text":"below.","page_number":99,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"e1e58035-c831-4da5-a4ca-a34ded5a88ec","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":99,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"ddf4449c-41d8-4265-a5c9-97867fe78e2c","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":99,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"7d2bb748-a4a4-4549-a0fc-6f2acd0f61bd","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":99,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"64286ece-a086-450c-9e41-971f31c4f244","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":99,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"c42ba520-eb98-43a6-86c1-49a2552a85cf","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":99,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"269c91b9-7df3-4076-a0ab-78dd6815e47f","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":99,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"15a59bd6-9981-4101-b583-26491a08ef7a","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":99,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"fb03614f-d8f7-462a-9059-3a39a7a6b040","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":99,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"99038a7e-b69a-48d6-b0f0-5e98a5a4167c","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":99,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"cfd8f1ab-3cb9-4020-8e66-68aa779670f8","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":99,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"e9d9042d-3083-4503-97b9-f56c29a73611","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":99,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"e18194a1-b4b6-444f-9fd6-12af8ea3119e","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":99,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"f772b5ef-592d-4cd2-84ae-6657ea69bd96","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":99,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"1d27df3e-1b13-4760-bbd3-037c5539f942","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":99,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"9a309e44-caca-4ff6-99bd-e798ecb88039","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":99,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"df533340-61da-4b73-9a64-6634da944a07","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":99,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"275c932e-c612-45d5-b7fb-7aaad3749649","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":99,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"4560db3e-5141-423f-ac11-19a536c031b1","block_type":"box","text":"securities in the forward transaction.","page_number":99,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"7254c699-4e53-4e45-bd45-c8c3a0e9e113","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":99,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"f968a59b-8afd-472e-a04e-5edd7606acc3","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":99,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"5c2be2fb-486e-4c3b-af21-3ec0524c9f1b","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":99,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"02fd4aa0-a50d-48be-be38-69dd8ba93a2c","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":99,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"23d89739-2ba8-47e7-942d-24fb3d0633a1","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":99,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"5e1efa6a-d349-40f7-91a3-3fea88787253","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":99,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"4a8f9efb-fa69-4e2e-bad4-143dc58b5406","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":99,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"b19a8f73-b4e9-4e41-821a-15f0de700598","block_type":"box","text":"securities (","page_number":99,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"2593c1f0-384f-4beb-97ae-4a036540cea0","block_type":"box","text":"e.g.","page_number":99,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"7d596555-4e98-4747-a474-ad7541ba229a","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":99,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"9cbbe2b8-6b65-4751-9d46-94ddd81c2631","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":99,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"c26fcb4c-0842-45ab-a300-34bfdc4c288b","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":99,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"2207c98d-f838-4bb5-9f80-0049ca6e3668","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":99,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"24e9a009-39e4-44fe-9768-4891bf37ca88","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":99,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"e9759d51-c583-4254-a0a7-03e7fd690aa7","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":99,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"a7974160-9c5c-40ec-82c3-6e905a6d6e72","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":99,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"866491b0-6fdc-4661-a833-6925b24ef765","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":99,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"49705eaa-f5fd-4392-abf8-630cd6eb08fb","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":99,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"d01d3d57-315c-4e33-85dd-babcd37fdf60","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":99,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"6b2322e2-83aa-4934-b31f-82e084f8bb95","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":99,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"69282732-0eb7-469a-a5a3-3484e188e921","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":99,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"ec8b2832-e1c5-4df6-9ab4-18cebc58f1d7","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":99,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"5a53fcc4-92f6-40e6-8c69-6c6b8e015130","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":99,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"0a9d0e9d-8ebc-4f20-88f0-dc0b508d17a1","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":99,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"7eeaff27-4bc7-43c3-9c9d-6f6b89dc8245","block_type":"box","text":"Municipal Investments.","page_number":99,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"11e3d38f-41ad-4a2e-afe5-123c633f8376","block_type":"box","text":"II-55","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"29c02641-2594-4cd2-b209-56b352484a6f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dcd71de8-f4af-4524-a8b1-720435cdcc72","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":100,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"a7abd897-ae06-4b89-a21a-f33c277c94f8","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":100,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"a549e099-f49b-4b70-918d-8b1844c49a91","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":100,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"2e84e12a-bb53-4b96-9480-396b5e78303a","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":100,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"150c21f2-16ce-4e39-8868-171f89a13c3d","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":100,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"a870c078-1a26-4fa7-aeb8-36c05bf101f0","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":100,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"a7ca75ef-2349-4917-89b7-a90e74458f79","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":100,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"ed5c47ce-aa84-4ffc-85c3-0f54083dd5d0","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":100,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"0b43654d-11aa-4158-82c3-d6e31230c634","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":100,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"f1a1733e-eaed-49ce-9e08-893b855895d0","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":100,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"f25e7904-873c-4984-9dcd-acc845f05277","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":100,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"d58eef41-b3ad-4db0-845d-edd7f647a219","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":100,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"cf48a17b-7707-4632-9899-c587d8e94da7","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":100,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"e7a3297e-dbfb-439e-8956-36051210b39f","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":100,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"9fcce573-f5cc-4e44-8d7f-f19a04c41249","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":100,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"25bd0aa8-732f-44f4-b5c5-a890b5bc1b7c","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":100,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"56319235-3e28-4a60-9241-638cb182ee4c","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":100,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"435b1ab9-0cab-44ac-b161-16b5be7d62de","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":100,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"23445cbe-99ee-414b-8749-f2475e6dcc22","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":100,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"00231df3-2841-48ac-a186-5e2763d0dbac","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":100,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"f125f3c3-3efb-479a-9215-21ef2072e692","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":100,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"99deceb4-aa7d-4ae7-a8c3-e4fe32521d19","block_type":"box","text":"The risks and special considerations","page_number":100,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"adff1fd0-9250-4e9f-880c-883b0b3b1d4d","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":100,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"f4abd1e3-67c8-481e-bef3-7e78d90b8b47","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":100,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"bd03687d-85ce-4829-86c9-d7458670c356","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":100,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"78779984-4335-4db4-8be5-0fcc4e4d6446","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":100,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"4a31d813-4fc3-4055-ab16-3c7b0d2f8b5b","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":100,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"992b9bde-a745-46b1-a1e0-f668317ad5a1","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":100,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"0dc22dc6-6aff-4e8a-b987-f78f7cb31242","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":100,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"f2066a00-8120-4025-9774-c4c234d86ef5","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":100,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"70f07d9a-e0c5-4414-a634-17f042ef3a25","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":100,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"3f744bae-3164-41ed-9f43-f86f6d8792b6","block_type":"box","text":"II-56","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"912339f5-8577-44df-ab53-be9e931e9c4a","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a315396b-fd6d-4e19-ae81-32cc7ceecf5e","block_type":"box","text":"Description of Municipal Bonds.","page_number":101,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"5fddd61b-352c-4347-8956-d183cff6a1e3","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":101,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"1444fed2-cb26-4bbf-ac80-a1aaabf49e17","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":101,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"9fe660ae-dd0e-4859-afc7-8c6068d5f65f","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":101,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"4ff18d5b-8f3d-41bb-a575-9bec7476daae","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":101,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"798c4643-9590-4431-b3b8-ad99c59ec155","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":101,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"7ac29c12-fe2c-4a86-a816-f5344f666089","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":101,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"7a224c77-0143-4a9b-9b79-97efb0031459","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":101,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"9ba11466-a62b-40c1-8f66-c833bb685741","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":101,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"67f6bdf0-05a3-489b-9053-018099e61a37","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":101,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"989df222-0511-4256-87c5-50a64c0b4a68","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":101,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"88f48446-c77a-468a-b8d0-a77a6fe46411","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":101,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"3285d1af-b19d-4759-9e5f-4fcfca84dacb","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":101,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"d8e5f155-7bd2-41b1-b17d-2cd7601e43f5","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":101,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"7a690564-c587-4b3a-9132-2e8b797b0a44","block_type":"box","text":"General Obligation Bonds.","page_number":101,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"a1145bd2-fcf2-47f0-817a-41f4b6aea117","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":101,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"05838166-9faa-436f-b9d3-f06b5c2d1ac0","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":101,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"ecbc977b-15c7-4524-9700-a1dddbb2ed4b","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":101,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"b6bef86d-cc81-4ab7-9329-8718945bff45","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":101,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"67b54fca-c1fa-44f9-9b04-221d9d1c0f59","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":101,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"7e3fd084-bdf0-4662-9448-d2488659f17b","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":101,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"1b0ac772-7704-4179-9369-18b2841ff976","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":101,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"c9d2b0f0-92ae-4b2b-be0f-1f7a83d74501","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":101,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"11c11ed8-7efd-497b-a1b9-fd5aeb6384f0","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":101,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"aa6142f3-4d73-4c7f-8753-e8e98faa983a","block_type":"box","text":"Revenue Bonds.","page_number":101,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"36cc2791-7a6c-48e1-8bfd-c1e43c4d9a31","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":101,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"e5521731-6ac3-4a10-ac7d-9705d5c72482","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":101,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"8f3c712d-f823-45b3-830c-2a28a9e502b3","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":101,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"394611c9-4a11-494b-935d-67d6021b2cd7","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":101,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"3842b054-e84e-488f-ad99-b951f29a87f7","block_type":"box","text":"viability of such facility or such revenue source.","page_number":101,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"c17c057a-f1bd-44b5-9b3e-76fa9ee2cb62","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":101,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"96194d15-0789-4cff-addc-fc9de1d7b12c","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":101,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"8ee73a43-1d84-41bd-a32a-78e552710456","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":101,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"c02a4c9f-9dcd-456b-8298-d2f48f483005","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":101,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"cb9b6457-b2ce-48de-83bf-59d8ae4706a6","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":101,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"cf2c2979-e4db-4d3e-96b9-5e0ed1d80426","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":101,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"d7054252-0485-4f53-8331-ebc83dadcdbc","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":101,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"994ea944-ea2b-4aac-90d8-46cc2f60ca57","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":101,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"c0cb3013-fb33-4270-9553-ec78f44ad08b","block_type":"box","text":"PABs.","page_number":101,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"306aa33c-153d-48b9-b2b8-09f1605a3294","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":101,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"a8aefdbe-3576-47df-a114-10687d4c7f56","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":101,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"282d7678-e5ee-49dc-95fa-3609b677dc1a","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":101,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"1dcc9556-c742-4512-ae38-9bcd609e4068","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":101,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"a9e1d5e2-00fa-476c-b137-ff73f071caf8","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":101,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"01b02e92-3e24-481e-93a0-814ba5e5a621","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":101,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"7e6ae584-cfd8-43cf-b8f7-73e180c30953","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":101,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"f54bae96-c633-4639-83aa-7dfd304e4ff8","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":101,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"a06e68e3-a283-4ade-a666-93e4ae911437","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":101,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"4cac0581-fa11-4d3c-94da-9ea078ec9042","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":101,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"71b20345-ca33-4877-87dc-949bc8ca8db6","block_type":"box","text":"the par ticular facility being financed.","page_number":101,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"0e461c87-e6e2-43af-a175-e880790a04bb","block_type":"box","text":"Moral Obligation Bonds.","page_number":101,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"05b9e601-0241-4aec-9aec-386eed5a2a93","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":101,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"37290117-1379-459b-bcf7-e844fab69be7","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":101,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"a7a7bed1-1178-4162-8514-f9fa6d48bbff","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":101,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"49ce9d20-b558-4c04-941c-fec2f82ee7b4","block_type":"box","text":"that issued the bonds.","page_number":101,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"f63dd5ca-762c-4c0d-bb44-e3e7f0c35fb6","block_type":"box","text":"Municipal Notes.","page_number":101,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"797e6697-b867-40bb-8391-f775d6619340","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":101,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"82095fef-11d9-4b6c-9151-cb65b43775d2","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":101,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"2c2d7edb-1ac3-4d36-8242-9e92ccb907b0","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":101,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"b05b4beb-cfcd-40f2-a32f-26c7480f8123","block_type":"box","text":"II-57","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"26047eb4-891f-4763-ab28-14ae713d7e1b","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ea3af1a-b231-4046-b77d-c41194868474","block_type":"box","text":"Municipal Commercial Paper.","page_number":102,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"e08e31f5-f9ab-44c0-aa32-79169c03f20a","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":102,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"e3f88b2c-794b-4a2f-8cea-eb8ea8d370a1","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":102,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"f54b1369-2238-48b0-bb11-696c84d87dc3","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":102,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"5e76b4fe-a19d-4164-9002-f7e1096119f2","block_type":"box","text":"Municipal Lease Obligations.","page_number":102,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"59588f67-a87e-4c58-83c8-df41e5486988","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":102,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"b977cd04-27b3-42c7-bc8b-a7cf49b14581","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":102,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"0559dc9c-3118-4967-898f-6edd31cf31d9","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":102,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"9ee611e9-bd06-4cf3-8e27-3a96f2efe446","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":102,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"1618a879-8173-408f-95c2-ff057db38d8c","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":102,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"22b989ca-bc41-4519-a599-485b16ed337d","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":102,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"881cdd22-159d-451f-b02c-6f22782025a5","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":102,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"e2faba6e-75df-47ec-b86d-46f450438b18","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":102,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"2a359eaf-9171-49c7-a721-42df30bf5e4e","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":102,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"102d0bde-c493-4677-a594-f27c8522452a","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":102,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"703bb69b-35ce-407b-8d6d-fd59f83b64c4","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":102,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"3755c8dd-18ed-4105-a28b-f828e4cb29e0","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":102,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"8a579a30-cee8-426a-b54c-4793d2d2f557","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":102,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"1bd6b9ec-1c2e-45d7-bbd6-d0d82b59cf36","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":102,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"d5fb68fe-5752-467c-b226-6ac01095aa8e","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":102,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"5a970245-a99a-4249-bb26-edc0068b758d","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":102,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"3f383d50-e410-4b39-85c6-233f302916d4","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":102,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"fed22048-967e-4da1-ba97-5c43e3ca330d","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":102,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"0cd7e9cc-404c-4cb8-a650-483b168e0e9d","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":102,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"e8da0221-dc03-4167-b100-2aec272f1d15","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":102,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"b791d9da-f7a1-486a-a667-8b41dd03c160","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":102,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"01da5a04-0904-4f8f-af2c-706e8562394a","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":102,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"9e31ce6f-fdc5-464c-a498-090f41a4db07","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":102,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"17cc0cbd-4779-4851-9a4e-2af026b7523f","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":102,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"83ee3f41-cf1e-4ea6-a22f-875c6ff822f0","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":102,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"7ff80371-dbe4-4ad3-b2da-9e734261e59f","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":102,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"5dd2979b-065f-43cd-8f86-8c20a0f15163","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":102,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"3a05b4a9-e6f3-4987-8ee3-0d81c64ca75c","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":102,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"59ae343b-9ccd-40a7-b3fb-37404c3a393e","block_type":"box","text":"Tender Option Bonds.","page_number":102,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"c79b1a66-792f-44c4-91b0-251255478dbc","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":102,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"2311de03-fca3-4a42-beeb-00224fd20378","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":102,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"ccfd89ed-4fce-4595-bb68-533af86a44da","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":102,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"09441022-e307-4c9f-b030-a374c794b109","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":102,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"0b971f6d-4478-4ce5-9c2a-b0b2ec409f63","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":102,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"35aaf57c-3012-4f96-a60c-7986a6f16fbb","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":102,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"011ce969-6808-48f1-80dd-5bd32ade5e45","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":102,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"52b940b2-d670-47ab-aed6-1db1285a34f2","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":102,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"f5202a01-72ab-418f-94eb-4dd527faac41","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":102,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"4b5b76de-8db6-4427-ab9a-66bedcea6617","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":102,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"0bb168a3-0d30-4b84-9276-b4b6e085c39b","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":102,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"30e2f153-fe4f-4c44-bbd7-5cda39d65bc9","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":102,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"21090512-bfee-48d8-9211-ced399c4ef29","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":102,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"dac010f9-53b4-45c2-b3ca-0e055c5a309f","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":102,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"468efada-44a5-477d-bf64-54b97c07a419","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":102,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"3e8c68c7-4d1f-4951-b6d2-42e04f5fd9bf","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":102,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"f796d0f5-4daa-4ec0-b701-66be848e074d","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":102,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"1feca460-8dda-4af7-b1f9-369890cea3a5","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":102,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"327843cb-eb9e-4a69-8475-3292c406c46e","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":102,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"33c037b1-2f28-4665-ba01-8aeddba37e9b","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":102,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"ee850297-71bc-48c8-9b6c-2e831f912e72","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":102,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"ce2a6998-8fe6-4c8a-a78c-930dee83a597","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":102,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"74c4f8ea-455a-4148-8f23-8203ccbb529e","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":102,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"44308c52-1b41-4dff-b07a-0fc224158e5f","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":102,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"5abe6f99-839f-4269-90e1-db298d6a5043","block_type":"box","text":"II-58","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fc342cad-e41a-4e71-817f-7da48a4cfe67","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f51bed7-6c95-4ee2-bb47-8e2108bf3282","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":103,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"6656e301-5d5e-4b95-a712-24233ac493e3","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":103,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"2b63d08e-1932-46f1-a7c9-997a4d80bec3","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":103,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"3f073632-7562-411f-9a4e-380a5b98e54a","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":103,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"bae125a3-ffe2-4739-822c-d191934a9d71","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":103,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"d43bc03d-b2ba-41d1-a74d-b20586528e8e","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":103,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"ab863096-5f4b-4090-8dd8-7a961e851188","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":103,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"14de493d-6e75-4aa2-b189-27eb03526b0f","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":103,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"1ad6ac7c-cdd8-479b-8e8d-0d525ddec478","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":103,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2d1c581c-dc97-4595-9a6c-91a13038c58c","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":103,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"50d57234-3e59-4793-a2e0-1c932eadb507","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":103,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"6491dc50-dfbf-43a6-8700-7c921e97de2d","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":103,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"5b12c096-2cb9-4814-b694-604f8cc57cbe","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":103,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"3689e42e-be8c-41e2-8e39-7b7d67432d77","block_type":"box","text":"issues.","page_number":103,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"5625ea98-aa0a-4bf4-8dd6-87549c81e247","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":103,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"c3680c51-61ff-4eac-a002-aacacc15a0e0","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":103,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"b76b948f-26b5-4777-bbb0-a7445cbd648d","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":103,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"6b744a4e-5fa0-4c18-8de1-4561dc00e5f9","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":103,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"70c9e579-6e6a-4e36-9387-17243b52564a","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":103,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"ae2d3eae-9864-4a26-9695-842179278592","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":103,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"36539dd2-ceb0-4b0a-a6a0-4fac4ec760f0","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":103,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"d9e26c08-03b1-4c27-9185-58016dd1dbbe","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":103,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"31b3651c-7028-4831-8dd1-46c19cd55e91","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":103,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"2412fb42-40d8-4548-8fca-330b915328fb","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":103,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"3283e3d3-d69f-480a-b4bc-8409ca3540b7","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":103,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"df1ce413-533e-4ecf-a2ba-c0984f600991","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":103,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"da5da197-4aa4-44ae-8bc3-6349e08dacb6","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":103,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"2b2bfe51-ddc7-4fe8-9749-983fed7b20e3","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":103,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"4f1e6ecc-a816-4aac-b643-9c5e913c5e4a","block_type":"box","text":"i.e.","page_number":103,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"95b44276-911d-486f-9e07-b65651823b14","block_type":"box","text":", the Fund). In contrast, in the","page_number":103,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"3b3070af-e05e-4d06-af01-fa02e08fcc99","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":103,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"b467f54c-202f-44f8-9f71-b31281585c56","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":103,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"1a74f5f0-1db0-48b8-939c-66057cd680f9","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":103,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"0685ad19-1261-4b24-a90d-addf63d25cca","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":103,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"5fabc052-a689-4554-a1f9-5cc723f10ce1","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":103,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"cdf9d0b0-19fb-4195-8687-43b141b990d0","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":103,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"9da990a7-e84f-4e5d-8ebb-82ebe253f64a","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":103,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"5ea15498-664f-49ef-b5ae-206619d2777c","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":103,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"6e203322-e3c3-47f3-a3a0-8e380febfda4","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":103,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"49a7565a-9e90-4d73-b1dd-0b91cb010fc3","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":103,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"1a2d07cb-173f-4cf9-b9e3-2fcd86606429","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":103,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"8ddf5c0f-59d9-433d-bdba-cbd64edac670","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":103,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"6d59f37e-621b-42ac-9382-20b50942c0a6","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":103,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"bb19eefc-9892-4e28-afc2-c9c9cf77af09","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":103,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"34e45e13-41c6-45c8-a452-2d9db74303ec","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":103,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"3c960915-5321-4c93-8296-cfab537031e5","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":103,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"ceed2c39-04be-4ca4-a3cd-c4974080138b","block_type":"box","text":"Trust.","page_number":103,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"db4a4799-8db7-4fa9-b20f-842a9805ae6d","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":103,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"dcf8f92a-5760-44c1-90fd-9d2a9b620dfe","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":103,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"35369774-992f-4b9e-b9a8-96d3f93e7307","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":103,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"f57b816c-98c1-4160-8e2d-24c4d06b0f1b","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":103,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"e3c8397c-b4f3-4325-9740-ebf0a7da5b2a","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":103,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"1459ab00-51f7-4dfd-9d6b-df5b1eae75ec","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":103,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"cf4790ce-65bb-4ad3-ba8b-71f47fa7d41a","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":103,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"f06e670a-70df-4e21-8b13-9a3118c97f83","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":103,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"a446d6b2-e885-48cd-b44d-ed240951a71b","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":103,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"0f93b857-e15a-4acb-91f4-c306706843ce","block_type":"box","text":"II-59","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a6c4871-6039-4629-8c14-c8da36acc007","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b8f71d8-f98e-45b5-ace5-f09a2e3df6c6","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":104,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"09637e68-9a71-4304-8ea3-64e0b86b1faf","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":104,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"4925b9fa-1ad3-4fdc-9a89-d7005de11124","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":104,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"3327b29f-6232-4b97-a6c2-ff2396d78eea","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":104,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3364a261-68eb-40fc-be6e-d649bab4906c","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":104,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"cca2da05-0b35-48be-9b10-432a54eb025d","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":104,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"3808ebb1-d8b3-40f5-8745-1cea56cde3ef","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":104,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"bf9a14af-7f64-4e03-85b7-cb1984503861","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":104,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"3dfbb413-405e-4c68-a68e-c94065aafdd5","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":104,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"ce928900-13e8-43fa-9da2-17ec3a964bcf","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":104,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"641dcf67-0b8f-4cd4-a598-9982355bae28","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":104,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"4259cea6-64d5-47c7-bff4-bb825b75b72a","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":104,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"8bec13a0-2e4e-4359-a6bd-8fb98a44233b","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":104,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"e49dc87a-6b9a-4a93-a256-6d8db484f3ac","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":104,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"b5cb723e-05f5-4f30-9a15-fe39ea4b9739","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":104,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"b8c5cdb3-2490-4077-aa49-b64595012563","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":104,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"4dfb1e73-965c-442b-a7f4-ea17ea176e6a","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":104,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"980f510e-9934-4419-b604-3c62dddde33a","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":104,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"d058040a-162d-4262-85ec-4637accb83da","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":104,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"11f7e5b8-d64c-4eb1-9572-b81b1405232b","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":104,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"652d7ceb-14c9-4a63-8fe0-5606870b41a3","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":104,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"d85a0198-0988-4433-a8ac-8d73dae575e9","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":104,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"13f78f42-5600-4fa2-a485-09c0d01e023f","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":104,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"dddeb0f4-b4df-4ddb-9a94-98fb05c19098","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":104,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"a32c0b6d-435e-464e-9db6-b0a186311f6c","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":104,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"b523b69f-b706-4c8b-9284-441b5a322060","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":104,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"8c4de55e-d1ef-434c-9393-57788552cf4a","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":104,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"63ca3b3a-1839-4ad8-bf78-d897591fe0c5","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":104,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"97f333f9-00ce-421c-83a9-6ac62f569e19","block_type":"box","text":"i.e.","page_number":104,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"79adebe5-0b0e-4a92-a069-dd85d85998cc","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":104,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"a61dd9b0-d3e0-4625-a8ca-07392c10986c","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":104,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"bb8d9d9d-5fd5-4db4-8f7c-5c7e0a67ff37","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":104,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"2658f898-b472-49be-8a9d-fa45ff2630eb","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":104,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"d0f5e090-6860-4bb3-bbbd-2bb184141fee","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":104,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"8e4be560-894c-47e1-8db6-0c643e8ed202","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":104,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"48395f68-7850-4b75-b487-8db03f3811d4","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":104,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"61395f27-86bc-4bdd-afe0-23b2a6652eb8","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":104,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"0f102a3a-1d24-4c62-80f5-6e1177daaeb6","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":104,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"b6601093-2f05-447d-87cf-e1f6ab3253e1","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":104,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"e444b94c-b2ce-4723-a2a8-5d9523889d13","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":104,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"7572e824-c781-4388-89e7-bd563c3a7cfd","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":104,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"637fbdaf-8df1-45cd-97b0-11498436db9c","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":104,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"eb031545-422e-4696-9fca-654fb6d6e333","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":104,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"b8ca3728-e361-4cce-a080-a0e05439921f","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":104,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"b802d7fe-29f6-4a0b-aa1b-702e5d8bc500","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":104,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"d5da9db4-267f-4ddb-8e11-9b7991b6d940","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":104,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"b3907596-d26f-4011-9158-db2665d9516e","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":104,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"2ffd14f2-a3a2-4977-80ca-936be579aca6","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":104,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"022e1b4f-ae26-4761-8d27-0b7a3bdd552a","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":104,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"19e64fd2-78f1-47fc-b499-d8d09d5b4276","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":104,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"033d549d-cb55-4d0a-9f44-e6abe5fadae1","block_type":"box","text":"market is not yet cer tain.","page_number":104,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"05184b80-1232-43c8-8a08-3f4870dd80a6","block_type":"box","text":"Yields.","page_number":104,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"40df27af-f120-402c-a7a7-cb2d35ecde7f","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":104,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"01e74b04-8f6a-4fa8-88ec-e119fa9ef7ca","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":104,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"a9d1f5a6-1d6a-40e6-b988-a1237223ed88","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":104,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"dab64dda-1921-4c2a-8cc7-bab1638785bd","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":104,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"9d6b55ca-d999-4c9b-807f-110988999255","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":104,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"cac7c007-d33b-453c-9970-20e98e88c448","block_type":"box","text":"II-60","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4200142d-9638-4ea5-874c-2292e9b1679c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f4325b3-b0e6-450e-a02d-92a3c7893201","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":105,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"23d7bbd9-5fa3-4c9d-a094-24b8c1725473","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":105,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"c11f37b3-d2c4-47e9-ae52-f981253266ca","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":105,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"21d6c0f7-e426-46c1-90cd-894423898941","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":105,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"33c75659-2ed7-40f5-a557-9083c821f13d","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":105,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"494d34ea-ae26-4293-9256-3223f8dd817b","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":105,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"3c59e1a2-925b-4265-adff-4a3f548fbcc8","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":105,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"a6e823bc-9288-4db1-86f7-ee623c3b5873","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":105,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"77434de6-2960-44a3-b344-24f40e5448a3","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":105,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"0202a10f-49b2-4cb4-971e-8fcf60d90b85","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":105,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"38b5a763-656d-4ce1-a9db-39212d850746","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":105,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"f7efcef9-c84d-4922-9dd7-e2d4d797b42e","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":105,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"db661222-98c4-4b90-86d6-6339adb5cb03","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":105,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"52601aa1-a650-4a05-89e8-d39827de97d3","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":105,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"baf9fca4-91b6-4ebb-9e1d-4cf689051685","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":105,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"6311546b-d9a1-4313-a6a7-f1b6b7d8baf2","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":105,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"83a38f06-fce4-4ee3-bed9-f6ce069099dc","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":105,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"6184f0ed-ad0b-4960-9524-5f555770c975","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":105,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"2c337a4b-35bb-4d2d-bbde-c9a284f32001","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":105,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"9a18f78a-2133-42fc-84be-e9154f02ec28","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":105,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"b51930df-90af-4dce-bdb0-6349937ea0d9","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":105,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"f8f45acb-036d-417f-84eb-954b3c60bf43","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":105,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"2ad2e521-4742-4bac-970c-7ec0bc59f6c3","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":105,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"fee3d571-bd22-4d45-ad1e-0539b95994b1","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":105,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"60f7c489-08bc-41a7-ba29-f01c802a0761","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":105,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"da52fbed-3677-4d66-b0d0-2674db4b2b67","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":105,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"2f29b951-39f2-4d0b-9864-469f00b67bec","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":105,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"31671c6f-ab43-42ca-81b5-dbb4c3a61aa5","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":105,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"f7a1da2e-2661-4ed5-8c9a-26c2a77c8c1b","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":105,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"b1a54def-c3cf-4163-bfb2-8796ee5c6ee7","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":105,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"c7e87a17-3590-4388-9659-6e5325b0ad46","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":105,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"c148df4a-2d98-4546-a1a4-675481e1fa26","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":105,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"162c1424-e956-46cf-a22c-65eba2fb25d8","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":105,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"aa426194-0f69-4b0f-92f9-6072a3c220e3","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":105,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"7d6526e2-a37c-43bd-a0ff-420f5d406039","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":105,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"fd1d9128-ddd5-4d76-a8cf-09716ebacb36","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":105,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"4b9f56c2-f6e4-4d3e-a59f-27885c006a7a","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":105,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"7c73b1ae-8ec3-4a72-b170-aad6e6551332","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":105,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"b38b9efb-9630-45af-a8dd-443a133053c7","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":105,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"0dd38db2-376d-4436-af2b-40583f99af02","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":105,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"18d50027-4968-4d55-bb4e-c2c170aec8f4","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":105,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"94c16c64-8bfb-40f5-9e94-5245f0cffa6d","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":105,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"9c792a11-98b9-467e-aecd-ca1e4801eb56","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":105,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"25947d15-f6ee-4c1f-b8ac-78581c6cb1ec","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":105,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"2d7da7f0-3d2e-4988-b18c-b5dd67037eaa","block_type":"box","text":"Call Rights.","page_number":105,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"39973e52-6c4a-421b-9a2e-025c6c7e45f2","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":105,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"aec122e5-5da2-4ed1-a40a-e44b3f4c886c","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":105,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"45eca9c5-89a5-45c8-a56b-bcca8d5c0b34","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":105,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"e3a92f32-1590-40de-9a3f-45423a67d77a","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":105,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"592d33c0-c174-4c88-9682-2ede003abba1","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":105,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"082fd2e1-53f0-4512-859b-d776a132c4cc","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":105,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"74d001cd-35ac-4ab3-9e0b-74c655451c8d","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":105,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"ac9eb0a7-9d7d-4918-b993-711afcddf7dd","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":105,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"72a52475-16ad-4dbd-b773-8d71c0de4c72","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":105,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"4c94354a-a700-4fd6-86ac-0aa6847dfe9f","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":105,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"1b5dbe15-1ba1-4c4d-bd49-d62a042c8b99","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":105,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"cb21019c-bcac-414f-bb4f-b3cc13294729","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":105,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"ad963a35-936c-4e87-a5bc-2991b7acb969","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":105,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"3d893983-f634-456d-a07c-3a3755b1d22f","block_type":"box","text":"II-61","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"353acfc7-1cf1-4eab-8215-02ace43c897b","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e9e53f52-3888-4aff-9965-4ef445a49be5","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":106,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"a8e24f0d-8d3a-45dd-8cdd-bb24f4ef69b0","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":106,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"38ed5c1e-695d-40f3-9af1-c8f93051e496","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":106,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"89a1464c-1c34-415e-bb33-3fffc81f7c82","block_type":"box","text":"i.e.","page_number":106,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"19933bce-a23c-4757-9bb4-99390f1ce340","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":106,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"d307536d-bb00-4170-975a-84a832d6b737","block_type":"box","text":"rates).","page_number":106,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"54b37cdd-d46b-4c0e-ad7a-6c88f7425058","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":106,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"2c6a6f3a-5618-4007-9d85-50e7d5b9730c","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":106,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"99454ba0-90f6-4fa2-98bc-f10c00bca786","block_type":"box","text":"e.g.","page_number":106,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"a6956fd8-6c8b-4212-97fd-995545ef7694","block_type":"box","text":", an exchange of fixed rate payments for","page_number":106,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"49f2ac50-df4d-4e6c-b709-b1294907f0ea","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":106,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"78646435-6ed1-4628-9967-806e934c5d49","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":106,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"5bd49bba-c8f9-40db-80b7-08a6629d27f1","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":106,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"d4e56c99-7713-4d09-a844-efcf40089c73","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":106,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"e44e2ef8-4ddd-4ae9-9f0f-a2a49d686074","block_type":"box","text":"with the same attributes as the swap (","page_number":106,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"c95426de-5924-4ab8-b569-9e1477279e62","block_type":"box","text":"e.g.","page_number":106,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"653405c5-e120-4ed6-bc8e-ae968800905e","block_type":"box","text":", coupon, maturity, call feature).","page_number":106,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"3a5c77e1-d28f-42d7-9fda-058460e000e6","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":106,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"633342b0-2bb6-4fe0-9990-29bed8693e43","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":106,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"bcb3f6a2-221d-4ab5-aabb-42ae595c0e44","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":106,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"eea079aa-57e4-4e2f-9f38-fe3e23d56fee","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":106,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"f9ff4eb0-d396-4eee-98b7-c37391be78b9","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":106,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"6bfe97ea-0ed6-418a-b2ea-bb03eb48a32c","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":106,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"1aaaf429-3eaf-4c4c-8dae-20dfe6274bf9","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":106,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"1266d37b-d81a-4899-8729-f03aa48d623b","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":106,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"ba622655-0d5c-4700-8b1e-3780de618fec","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":106,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"84d93dae-d47c-493a-9070-8d1dbff78d01","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":106,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"588ca1c0-0ded-421c-a545-3c84c9beadb5","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":106,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"307260f4-0988-4091-922d-3a55e350a36e","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":106,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"e1c6a864-59e0-4c96-b5d0-efe4bc3bd206","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":106,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"c9d1cc33-d38c-4072-92b2-8473de85d425","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":106,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"6c36f7d2-f2da-4e99-ac93-3f4052fd7217","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":106,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"4b610dac-3636-4fc9-95c9-452da57163c4","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":106,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"7ed17ec2-83bf-4391-8963-de0d9ee2b548","block_type":"box","text":"Insured Municipal Bonds.","page_number":106,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"f2df662e-2cee-415c-bd96-a39d38f9ec6d","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":106,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"11ba8386-e9aa-4b02-b45e-6abc693e873a","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":106,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"fcbc2dcc-44d6-4df4-960f-4c36cf06e1c6","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":106,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"60fd27f7-4772-4397-b283-833cf13df0c5","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":106,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"8703ea98-7f70-40f8-9794-043d51158eaa","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":106,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"90dc6ae6-3e1f-48e1-bcb3-17c1984b5877","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":106,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"bacfb7f6-ef52-4d3b-8eea-61e953237f96","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":106,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"fa050538-fe63-4b67-8d97-094cb6ebbba3","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":106,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"3c152ca6-9efd-45d2-86af-60035e451fc9","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":106,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"6bc7a40e-e4ed-4a01-839d-7492a0a3fcc2","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":106,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"891081d8-3c46-4cfa-a5b6-21389177653c","block_type":"box","text":"bond could drop.","page_number":106,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"f26903a5-442e-4121-a828-96f7d600674e","block_type":"box","text":"Build America Bonds.","page_number":106,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"5282d20b-faaa-42d4-b711-4d7c7b7fa8e1","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":106,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"fc2b7a00-ddda-4fb8-ae0e-971396c631c5","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":106,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"c15a6fa2-a886-4d2f-a82c-f96453e09fd1","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":106,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"957f6202-708c-4a27-a9bc-f157f48c7f7f","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":106,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"72c250e5-65f7-4d79-b52e-f4dfcfe1ba5c","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":106,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"a4747ddf-5038-4b66-8b55-1f772adb64a7","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":106,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"3865df96-dd38-4b5a-8018-4337f5f51b95","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":106,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"07a38965-b541-4ba0-879a-52521d5e6314","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":106,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"e2a229ed-1eb4-4e29-a244-ef940b3e1482","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":106,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"14e26aca-08f7-479b-b9eb-e02f448264d4","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":106,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"f5b5a8a2-7273-4a7d-9097-1de3859fd0d3","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":106,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"d2ea7509-f0c7-423b-b103-c834600136e5","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":106,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"3f35757d-37cb-4a64-988d-da0168bde839","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":106,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"449cdfdc-5a22-46db-860c-7eec8a4a6a0d","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":106,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"a6ecacd1-39a6-4f21-85ea-7f3d9951defe","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":106,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"1797b00c-8460-411d-96f6-612196dafa11","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":106,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"10722ba5-bf44-4075-95de-4f6873ac2088","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":106,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"8e0bad12-7d35-44fb-951e-5c38ef9badd1","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":106,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"268b0b9d-cc73-4396-a19e-283ccd2bac09","block_type":"box","text":"II-62","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"795a853b-7a64-49a6-99c9-365f0c9833c6","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb386603-ba83-4d14-924c-e3ebe971e02e","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":107,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"076c2b48-cb9f-40c9-a5e4-507e5daedd93","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":107,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"5c2e2d98-de61-4f29-b056-71dc71b20e31","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":107,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"4f9005a5-2022-4060-9bd2-65f50ac889f5","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":107,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"168401e3-043d-46be-99e0-b43eb79fd4f2","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":107,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"685d4bc5-3baa-480e-be01-b8c80c31faf0","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":107,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"eec94dd4-079d-49ca-8ae8-9e06ee47ac14","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":107,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"f68f7e9f-9de3-471e-84d7-65a5f8750ff9","block_type":"box","text":"their face value to the sponsor (","page_number":107,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"346f64bd-7020-4909-8735-b4e4a992a8ef","block_type":"box","text":"e.g.","page_number":107,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"6e649815-d06b-4597-98de-d398ee3e9e7e","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":107,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"28f30858-0e6c-4747-a541-d84d3f8255db","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":107,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"d2f26681-868b-4470-a7de-97ae0d7ee64c","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":107,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"68617707-17af-4dea-8aa8-f8f1e866644e","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":107,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"d3747f4d-a427-4d88-bdf9-6f7df3d3f849","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":107,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"1cd1451c-9e43-4949-aa14-ed048c9377b8","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":107,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"dc6be50a-3927-450d-a279-63a6847b6f75","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":107,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"b3248df3-f51d-46d3-a638-79670e13bbff","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":107,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"b17653e5-8f88-4e29-89ac-d3d06dd025db","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":107,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"77703798-ad53-421b-99bc-8c41bfdcbb4b","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":107,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"322a8113-d6a5-496a-9600-c43d200de3aa","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":107,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"775868f7-9153-44ab-9920-d0fedbc6b3c1","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":107,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"4cf9a54b-5d61-46c3-9ecb-7b601a173597","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":107,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"b9931643-5616-4c53-a8aa-dd091af0ddea","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":107,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"697fcde7-4df4-4d21-a1cc-05d681a76379","block_type":"box","text":"such opinions.","page_number":107,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"33e80020-56c2-4cc6-94d7-7d52e727085a","block_type":"box","text":"Operational and Technology Risks.","page_number":107,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"88fe0cba-b0b2-4f62-91d4-0fc19c03932d","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":107,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"12d46a7a-8ece-4702-a6da-157326eaed24","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":107,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"816189c7-29e3-4bf8-8eac-a0639f8b2d55","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":107,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"e7b7b0fe-9529-42d1-8d8b-6651bccba840","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":107,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"f4530b23-40c6-4fd3-9555-34817456fbbe","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":107,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"82a6fb9a-7448-41a9-85a1-5078373d14e7","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":107,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"2e6df258-84f1-4118-8f98-3f18a9f26eca","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":107,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"46c6358d-4e6a-475b-868e-3a764097171b","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":107,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"fa7eb567-f0ab-45e7-b8c3-1980035da946","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":107,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"6c06bcd9-b74f-4f6e-9e36-b08d5ac990da","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":107,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"393beb0b-c0e6-4b1b-aedf-6a32917b8704","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":107,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"036be7d3-9276-4a4b-94ab-7f07c32a576b","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":107,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"53d3626f-7b25-4310-8eb6-b83b9153a932","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":107,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"59332ac5-4bc1-475b-9838-0c34d3391ce7","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":107,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"09106bd9-514c-414d-8ecb-c79c7850eff5","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":107,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"321ed9df-c190-4bbf-a2d9-7a9c810e93df","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":107,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"bc7ba0b9-4c37-4981-893c-cf69f466deee","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":107,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"2c5fedd2-9eba-4bc7-a920-da8baee71e01","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":107,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"e38289ce-ef94-4ee7-b512-4d0ae26a8d81","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":107,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"5c820167-5eb8-46a2-9af8-9332d82dd82a","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":107,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"7ed0b40f-460f-4e06-a90f-ed623233ad50","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":107,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"68a66319-9c9b-4fa7-bdbe-85ea0602286c","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":107,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"83e7aea5-fd38-4780-ab33-485b0d83f235","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":107,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"2af82a34-e4d4-452e-be04-1658a7afdf12","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":107,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"325df344-1f53-4721-b60f-ed5de8138a8e","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":107,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"b21277aa-b622-4cd8-a80b-0e436f6ef1d2","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":107,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"89cd9b35-3a6a-470d-89c1-166d5f095a9a","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":107,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"320199b1-9509-4469-b869-5188b157d6e5","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":107,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"70028641-4d71-4d8c-98f6-d6db83f77799","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":107,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"3417ebff-4db1-4cb2-96ad-c0db5ba9fd77","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":107,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"0ebf3ebb-3694-40a5-987f-8af5c8f59bc3","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":107,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"94f063cc-d35d-4ada-a92c-d157ad98123d","block_type":"box","text":"infrastructure assets.","page_number":107,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"75826907-90a9-4050-8b84-842805fd461a","block_type":"box","text":"II-63","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a0ef2984-e84e-422a-b093-71049995336f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8223e64-9377-4544-be08-a28b62696fcf","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":108,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"4344a06b-84e6-490f-9af1-c841e78c75c0","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":108,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c6cf9d5d-283a-49c0-ad7c-a6f26763eae7","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":108,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"bc724a16-e53e-4a9d-a78a-fa768b8d7fff","block_type":"box","text":"or services.","page_number":108,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"7c820bb0-9855-4b5f-b5ab-d55084f5beeb","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":108,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"f3922f0d-af26-41d3-907d-93cb32f7211a","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":108,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"106fd25f-162e-43f8-b342-229080e9ad12","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":108,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"087285f2-d183-4834-937f-8e9a35764b4d","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":108,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"52f07d32-d2a3-41f6-b72d-eb50a8a27a05","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":108,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"4a6d6c62-6eed-4c52-9ae1-8e7d9d7f83fc","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":108,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"04a69562-642c-42bd-a490-6231e1de3e7d","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":108,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"7c8b45e4-703a-4c00-82e5-37523db34514","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":108,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"53452b2f-8ca8-43cd-ba91-351ba419cfec","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":108,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"eb25ad86-b547-456f-b4e4-9f0d54b63e05","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":108,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"4b94f5df-b1d5-4b4f-93dd-be7c1e34ab33","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":108,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"6d48acff-ce83-480a-aa54-28377169e447","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":108,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"cdeb47e7-c022-4e17-90a9-d6fc630b79f5","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":108,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"6cc179ec-fdae-4f5c-a530-ee7091064529","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":108,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"a3140c90-e142-4236-96b1-0e06550dc757","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":108,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"de38b5dd-a505-46b4-9b2e-4dcc0a576545","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":108,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"149fb56e-f924-43e5-abb7-29dcd8f650ea","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":108,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"4382b5d6-8c2b-4154-a94d-848a4832afac","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":108,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"a8b9c162-4213-44a7-95c9-4ec55d2a5567","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":108,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"8e04ed6d-5f0f-479d-80ec-91a003bad1b7","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":108,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"59adbdc4-f970-4c11-9242-0fa25ee7a3e4","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":108,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"82d9a9d3-3383-43a3-8835-65b369bb87da","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":108,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"a37fe979-1013-4781-ab18-fe45d9f4aa58","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":108,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"1fa74aa9-61b5-4211-aedd-08db9cff656b","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":108,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"4ade84a1-6072-4a77-8d57-b52ad2d059cf","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":108,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"6c37d0e3-3334-4249-b19b-01ebf872c0fe","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":108,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"6c1f8dff-1a6c-4ef1-83c3-a13e1678fe34","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":108,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"0be1a39d-5726-4338-a261-20e3f70c795d","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":108,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"7a7445a7-0109-4f15-82db-4ddca2c2b040","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":108,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"722d0c31-009b-44d7-9233-30bcb505f0af","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":108,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"284dc30c-a74e-4ba3-bba1-5914246e0818","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":108,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"d16c7bb7-dc05-4e48-b8f0-f62e3b84997a","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":108,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"043fcef2-bb0a-4fa8-9a63-af9687aa4b98","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":108,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"be1464b5-8131-4e93-8783-c6d7db64d99b","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":108,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"0ef43e93-e59d-4122-9f41-118698d242ad","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":108,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"91964645-b4c4-427d-abee-196b90d54277","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":108,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"d6acff16-077c-4383-bc81-cb0a3bf9c161","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":108,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"c00d61af-d9c2-47ee-8ddc-57be3bbe0051","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":108,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"ff658a63-9853-4745-9545-86ba2b1f7aa3","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":108,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"2b1569ce-1807-433d-867d-b6b71b70e315","block_type":"box","text":"resources to monitor and implement required changes.","page_number":108,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"12ab0d7f-497c-41cc-abbb-efcf852fa2b0","block_type":"box","text":"Participation Notes.","page_number":108,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"09495ef2-0f7e-4d27-a309-92f5f57c4277","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":108,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"7dc213b4-b4d2-4e76-a7f7-d99263128902","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":108,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"83950663-a8ef-4d13-95a3-0f223a7eeca9","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":108,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"2097b76b-13c9-4b5d-8701-6b023b1d016a","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":108,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"82865150-5468-41bd-a647-9007740fefbd","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":108,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"df110cd7-3ca2-4f81-a0b6-26ffb0fde9a4","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":108,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"f62c0196-d2a5-4018-9052-19005aa69e89","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":108,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"59bada96-ef01-46fa-8eff-a5942354b672","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":108,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"5ae76376-dec4-4db2-9b81-58ecf1d8d81f","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":108,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"d2a0f338-1400-4c5a-8224-ecd52bac6729","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":108,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"c4541432-b8b5-4c3c-bf5e-d1a50d127a99","block_type":"box","text":"II-64","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b93909c-9724-4bf8-89b7-f0614e7174f5","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5bed82f3-f326-4574-a3f5-9bccee0c0649","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":109,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"23ee555b-4860-44f5-b6f4-e1f43f5a4f0d","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":109,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"ef642df2-80b2-4e7a-bc90-82322c5f4508","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":109,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"591b3aaf-5180-4f7a-b2f5-010dfb53cb29","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":109,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"1b428d34-3921-425b-809d-ed747792f929","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":109,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"f50cd4d0-4cfe-474b-b797-98d8d9b016d3","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":109,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"127d5b9e-2076-40e0-b19b-1b76ba11a8ca","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":109,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"fae4099c-fc6a-43fc-9fc9-50c5f4a2f827","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":109,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"862fc770-7348-45d0-9f8a-fc6ab05390e8","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":109,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"a769e643-f722-48ca-8dad-d047112ab2d8","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":109,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"ec026b36-b838-4dd2-a830-70603bbb704b","block_type":"box","text":"Portfolio Turnover Rates.","page_number":109,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"7384dbf9-d638-4a9b-b063-96a951a11d92","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":109,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"292270a9-b413-497d-a413-c7934454375f","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":109,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"1f956b37-dbe0-4409-a4d9-4d00c63587c8","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":109,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"68528a71-f79a-44fc-804e-025c70954aff","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":109,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"19bdfa67-6053-4dde-9a07-1d5e5f87288f","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":109,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"e8e3d499-a9d6-4dc5-b236-9167b3b7f271","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":109,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"4aef169f-127c-4d86-9489-fbf68ebdc916","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":109,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"85eb1d5b-310c-49b8-a3ef-6598608a4ef9","block_type":"box","text":"i.e.","page_number":109,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"86adc05a-7e7d-4ba7-b84b-c90eca99e7da","block_type":"box","text":", 100% or more) may result in","page_number":109,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"786afdd2-6d20-4333-8ee5-f4c525f316cb","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":109,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"bdc9b464-7f2d-4afe-adbb-bfb7b75fb35a","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":109,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"4c74ade6-2888-4a76-92d6-ea332c2f317c","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":109,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"6f223f49-d18b-4af5-a45b-5a95608e23a6","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":109,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"29b526c1-b8e3-4bc4-99d9-e6de1c1385b5","block_type":"box","text":"Preferred Stock.","page_number":109,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"76bfd349-7e9c-4747-a609-6b0ee35174fd","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":109,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"07e7ae76-ee47-4419-bf3e-288e430b58dc","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":109,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"fbfc8265-b48f-495c-b08e-823ad9add9d7","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":109,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"d57e2b04-a24b-440d-be56-47a91efc8ff5","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":109,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"bbfcb29a-f8f1-49b0-8196-486ebf2f4bd8","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":109,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"570d0198-88e6-40e1-b9c5-888eba68f9e1","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":109,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"ac03f1e7-52e4-4149-a5d9-32fab1e4ab52","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":109,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"dbe9c94c-633e-4561-94c4-b20f58d7a4ac","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":109,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"a3dea389-02d2-4080-bf86-d097b9a29c77","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":109,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"b7f99782-2236-4bda-8e7d-13d4be8c493c","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":109,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"514de083-d87e-490c-9b99-772e645dd60c","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":109,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"eebba273-5fe9-41d7-9cde-5b7c547cb139","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":109,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"8638a1ea-ff6d-4585-a594-19d2aacb5a61","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":109,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"798326f4-1d2f-4eb5-91ed-5c16cf9bf598","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":109,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"60b5b2b3-0ad6-4181-b693-3c58ad68df28","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":109,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"954dfcdd-c006-4356-937d-99c2dddac4c4","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":109,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"c64914cc-80ba-41a5-a4dd-84f88be032c1","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":109,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"cf996225-6516-4481-a6c4-933985632897","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":109,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"1d724deb-b38a-4f8b-a26d-f905df6285fd","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":109,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"cae22ac2-b5cc-4787-847f-80c5eefa2389","block_type":"box","text":"Trust Preferred Securities.","page_number":109,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"1baaba6b-8dfc-4c56-bbca-19ccf5d23cfa","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":109,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"4ad65def-c148-430e-9d36-4a284c2b2a2a","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":109,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"2d6c831a-638b-4be7-9937-709d157a1701","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":109,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"4d2c47ab-5014-4a44-96e2-04e41424014f","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":109,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"69822b0f-04ae-4dd2-9087-f3476ca7f95f","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":109,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"65d64c27-f011-4d46-a53b-fa39c2a396a1","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":109,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"a58834b7-c1cc-4418-b55d-9a8d2f718dc5","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":109,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"100de515-c022-400c-86b7-ca863153d5bc","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":109,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"afcfbe3b-9c35-448c-91b2-b1f0feb874b3","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":109,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"7863019e-a02a-4804-aca8-4afaf19f2eee","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":109,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"2115878b-4255-44ab-9e3c-ddcf4e31fd99","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":109,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"6c71fc27-3f8a-4d95-a5c4-22f503794cdb","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":109,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"10b1b24f-54d6-4f21-820c-7efe85293683","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":109,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"9b486b18-db35-4119-a2fa-9cb786020bba","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":109,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"170cf6c0-5e39-47b2-bbc4-1b5d320a2f28","block_type":"box","text":"®","page_number":109,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"780e4b1b-becf-4361-a41e-0e9ba5b6cffe","block_type":"box","text":"”); monthly","page_number":109,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"e2177daa-f563-4368-b794-36febd04b219","block_type":"box","text":"income preferred securities (“MIPS","page_number":109,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"299ec2a3-3e34-4354-acd0-f1af32d80442","block_type":"box","text":"®","page_number":109,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"f3290b53-c9d0-47c0-9c73-52ff6e5f67d4","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":109,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"e0edb965-2ef3-4284-b4ac-0c188f794d45","block_type":"box","text":"®","page_number":109,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"4320fbaa-81a4-4174-929d-568857d1dadb","block_type":"box","text":"” ); quar terly income debt securities","page_number":109,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"32c28122-8410-45a3-b6be-5827d9f47b55","block_type":"box","text":"II-65","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f2fdb30-de78-44f6-873a-37427908bedf","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a4aadbc-fa38-46b8-83f8-743dbb30c610","block_type":"box","text":"(“QUIDS","page_number":110,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"0e374d97-e6ed-43bc-bc2b-26f210a92610","block_type":"box","text":"®","page_number":110,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"e59ca4ef-91b9-4a9e-9cd9-722fdac1b30b","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":110,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"aa699467-5e4f-49af-82a1-f2be68432e9a","block_type":"box","text":"SM","page_number":110,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"04a0bb34-c3a3-4114-86c8-2a37056890d7","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":110,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"99097210-8d7c-461a-8f20-2eedb474f50b","block_type":"box","text":"®","page_number":110,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"0a754427-225b-4120-a45b-3bd7ba6dde9e","block_type":"box","text":"”); public income","page_number":110,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"d49e72fd-89bf-4f20-8b57-02f1dbcbb380","block_type":"box","text":"notes (“PINES","page_number":110,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"fe002e8d-4909-45b4-a920-934ec0bf366f","block_type":"box","text":"®","page_number":110,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"5d36f78c-3204-44f3-83d7-dc28e5e193e6","block_type":"box","text":"”); and other trust preferred securities.","page_number":110,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"1261a6cb-1862-4cb1-a758-f53e457390a6","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":110,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"61a24546-36f4-44cd-a245-6c02e366bd0f","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":110,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"49e1c205-a0a8-4933-8d48-f685785358f8","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":110,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"d7e416bb-58c7-4dd7-9e5c-408f9db30695","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":110,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"86fc1135-0933-4252-a85b-d48a1e918a85","block_type":"box","text":"regard to whether all payments have been paid.","page_number":110,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"e811d870-2bb3-4332-b0c3-4b3879e43628","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":110,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"8af9662d-1c12-4b7a-8297-14d5577e87aa","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":110,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"439c653b-c01f-4522-b0bd-fbb47adb1c4b","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":110,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"55bcd688-f364-414e-8819-7d1e64695adc","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":110,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"4b623be9-e9c6-48ba-ae7e-10e016d54e6c","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":110,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"118089da-509d-4315-ae53-57a60c6f7a8d","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":110,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"2da0afec-6540-46b4-acfe-c16f76ad80c0","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":110,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"a00395c8-1ae1-4f5b-ba0c-4b26f3f5faa7","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":110,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"e1aa125c-c24b-446b-8164-bb7cc4909e1a","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":110,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"fea3e244-c159-4652-8d3e-ab58a974c7ff","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":110,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"b64bd5a5-d2c4-463f-ad2e-3adf7d888614","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":110,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"1b7c811c-2e88-407d-be08-161d4673d421","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":110,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"2d479513-12b5-455b-bb94-206831783fe7","block_type":"box","text":"debt securities.","page_number":110,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"0f1b4fe9-40e7-4ea9-a88c-e0b1fcbc77e1","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":110,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"0939e100-2a96-48aa-815e-e8cbc71260be","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":110,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"57e632a3-d045-4407-92fb-bd906ba5e28b","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":110,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"1b08ad28-5a65-434e-9767-4bede920a43e","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":110,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"f8c9e5f8-9b61-4086-892d-9ef4498bd784","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":110,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"16e6fcb1-03dd-4a9c-9120-d54f56f9a712","block_type":"box","text":"i.e.","page_number":110,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"524dcbc5-2daa-4586-b5af-d78db8708c96","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":110,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"be37af74-89ef-41a2-a170-60f015000654","block_type":"box","text":"buildings.","page_number":110,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"d4cc4b78-34f4-4294-a039-9152c113adbd","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":110,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"6857b82c-6433-4af6-af2c-f8d60363fb4c","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":110,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"4df34f27-c372-40e5-ab27-0560ff97c13b","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":110,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"1592ab04-e5df-4c68-b1f5-1d227d4472ef","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":110,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"2a0e0f95-0fe2-4c7c-936b-2599a5a32939","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":110,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"0197cd03-57a3-4da9-b830-ee4e9b9ca778","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":110,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"57f4cb6a-5885-4fd2-9373-72c5f3109ed7","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":110,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"16864765-cbb8-4285-8187-b522a6776687","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":110,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"e4ca4a36-6c8a-4722-9d2e-8dab169ad6e4","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":110,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"88c361cd-cc79-472b-a624-2e5c28961c41","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":110,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"752bc35b-4c93-4ce8-8cba-e124b1495d3f","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":110,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"acacf206-3f66-4179-b1d3-7f5535dc0732","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":110,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"6a5ebcbe-13e2-45a4-ba15-d028a79660c6","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":110,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"f1b03e10-0131-474b-b95b-423ca6052195","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":110,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"b053deed-79e4-4ff3-b46e-02955ae562df","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":110,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"419f8ffc-5c13-46aa-b77a-d8a11af9a1c7","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":110,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"a6dd4bba-51d9-402a-99ce-ee2d78609535","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":110,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"4cf641e4-56c4-4d8f-ba83-85bfc695c358","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":110,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"633662b8-80b8-430e-b72a-50fd5228b26e","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":110,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"80302f9e-ad6d-4307-ba36-3001198fb053","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":110,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"29fa1fce-d6ab-4b0f-8780-2c264de02dea","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":110,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"52838320-e229-458c-858d-6849649bca53","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":110,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"ad88620a-d6f2-424c-9183-76b5bdf68e51","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":110,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"ea1af246-274e-4240-a696-d11daece32af","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":110,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"b3e8873f-0568-4af8-8bd1-795a651195f2","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":110,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"579f37b9-aefe-416c-811e-1f220dda4c74","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":110,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"07b03049-5363-477e-a41e-7f5871ee82cc","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":110,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"db95a179-c738-4825-8dae-993783fbf5fe","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":110,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"6cc30daf-32c5-4f73-a39c-66f44e528508","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":110,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"6c57c2b6-6655-46d8-90e5-463bbabf7c21","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":110,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"ba430af5-f676-4459-a084-03b092dd78e0","block_type":"box","text":"II-66","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c883fb75-ada6-44cf-8a06-f65de9200989","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef92682d-5083-43c5-ab64-1364407a4b04","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":111,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"1629f713-55ae-4c62-a8a6-f8e9a0fa196a","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":111,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"df123637-dd5e-4bf3-b093-1002df20fd90","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":111,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"88e54481-36dc-4786-a256-1f94e9c2ef67","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":111,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"a937f075-4516-4bcb-9dc9-82d8aa80d199","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":111,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"5860eef8-6916-42ae-b71b-15d94d5581e2","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":111,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"101a829c-a000-4358-ab59-3fda98161bd0","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":111,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"22812211-c04d-4653-b2b9-e992e086a7e9","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":111,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"2ac61e25-00e9-4d80-ad3a-72fdb36eb272","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":111,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"b11961a4-949f-4683-b17a-f1675f067e40","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":111,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"ffb605e0-3421-4195-8fa8-ce8633e70835","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":111,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"d9ea6896-7339-4772-a9b3-bc6bb99925c0","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":111,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"3cb75ce4-4f76-45d9-a22f-7baf0a4948b2","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":111,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"bae9f9fb-5c3f-48c2-b15e-28e6c01cebf2","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":111,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"8a98009a-054c-46d6-a337-4457b511f5c0","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":111,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"29cca685-1101-47d2-bc42-38964518ade5","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":111,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"8700b1a0-df61-4da6-862f-4b4ce7681c1d","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":111,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"2bf64c0f-d1f7-4fe4-a195-4685e9f8a789","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":111,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"26b4724a-880a-4db7-8a28-86a40d7c19fc","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":111,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"399b928e-d603-4d0e-85d0-ff9af18a7b50","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":111,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"c3bfb8bd-5e17-42c1-867b-70a114ac8bb8","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":111,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"df485efe-3939-4976-93b3-6413a4400c7b","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":111,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"929e5df3-ec12-4b88-a203-bbc043a982e6","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":111,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"21de5b9e-edb8-4045-a4fd-9b9290e49f0a","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":111,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"c77df22e-de0c-4e23-a8e3-f9a0e47571c9","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":111,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"e524d4d1-274b-4f97-bb86-2ade54041e91","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":111,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"a079dd6a-16b5-471d-908c-beca0336dfef","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":111,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"13fe2598-647d-429a-9f9d-cd825bef561a","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":111,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"f4f6337c-8437-48b0-8890-5860760d22b4","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":111,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"f4c2c87c-80e8-49aa-830c-eae75215f46e","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":111,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"80970d8c-9ae6-4853-ad66-cd9de7361d92","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":111,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"60cc7666-2871-4789-a185-ad250900ef3f","block_type":"box","text":"conditions.","page_number":111,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"fb829924-58b9-458d-83fa-4ebec521410c","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":111,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"6d6e9e4f-1b7b-46e0-b8a8-7b1ebf7c072a","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":111,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"e2f51df3-d7ae-4a88-be72-0a75005d3ca2","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":111,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"84c81387-f5e9-40bd-913f-ecc6c4519dc6","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":111,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"7cb38c13-161f-48a0-85f5-153963ca9fe0","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":111,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"48640f5f-2783-4880-a67e-27db4d932b55","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":111,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"74791ffa-0b31-4752-9353-046b308ee91c","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":111,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"7a40f0c6-9315-41f0-84fe-99a6301a65a6","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":111,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"d1467c67-a0b4-474b-814b-d6643d72ea50","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":111,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"12290d97-5c1a-486a-8440-eccf3f8fecfa","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":111,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"2a5b76ec-aa5d-41b2-915e-5175baf64f27","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":111,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"86040130-5a14-4fc6-9bb0-8715f741c6b6","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":111,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"deb9e7bd-443b-4b96-b5d9-2b91770c190d","block_type":"box","text":"affected by such events.","page_number":111,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"9d4e87db-9501-4eb1-99cf-659308a636a3","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":111,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"3f27558f-b9c6-4cba-a336-a38a778eaf7b","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":111,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"4b55573e-fcf0-43b1-a3ae-cb599edc08fc","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":111,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"c38205ed-026a-4f12-9f67-7c079b74f682","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":111,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"a8175265-44d6-4166-a3b3-107b0b0aba3a","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":111,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"cd0886f9-54e7-4a41-8e2c-226f302a2eba","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":111,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"2bb18a9a-eec8-4572-a4f9-4efe96d910d6","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":111,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"a563879e-ec1b-4a8d-a9b8-12109ffaa3b8","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":111,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"0cb9f8b2-9b08-4e72-9a61-b3c6c668f5c2","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":111,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"40217481-106b-4647-a83b-d21cbee2c42e","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":111,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"bf86fd2e-d193-400e-b375-e21aa2dee2b2","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":111,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"2d29c5de-1f72-48f4-8701-d6a89a8a5c0b","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":111,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"e7148b30-37c0-4197-8e9d-7bb0e3fdc308","block_type":"box","text":"II-67","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bd66596-acf7-4c2b-b641-a2f4c9c25dde","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2753b075-3b36-4c10-b972-a1325c9e2ff8","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":112,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"8a8e9eb3-a37f-479d-83a8-60f81218254f","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":112,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"40d6e888-9dd5-405c-bf83-59deb139b885","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":112,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"fa4532de-f8f0-4bf1-9087-96a6ebc08caa","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":112,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"724e1516-9033-459e-9d38-bf9ed0c11c5f","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":112,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"230e4ed1-b7c8-48fc-b75f-77771dc36597","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":112,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"c0fe585c-210d-4301-a890-ac5de82ef9d8","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":112,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"cb3f8721-5540-45be-80b4-1fb4596155c5","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":112,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"02875c44-d3be-463b-9be5-c19e965552d4","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":112,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"97da7776-2381-47df-a36f-af44c4ccefd1","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":112,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"c39762b7-ec45-4afe-b15c-8a6057fca0bf","block_type":"box","text":"investments.","page_number":112,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"7e92c2d2-3181-4396-b1ec-1e4a5c862223","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":112,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"8d92f98b-895d-4cd0-b251-13089d0fe288","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":112,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"aa974210-e08e-4f54-b72d-d3938d1e2274","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":112,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"c921d7fd-f134-4376-a12e-85031d146e98","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":112,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"3c89c426-3e39-407c-b1c9-b6e486a248e9","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":112,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"1b41ef0b-2a74-41a9-b23e-94e8ac7afd9f","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":112,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"c2f1f039-2099-403b-ba89-c113b3ed8655","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":112,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"0a29770c-37b5-4362-bea6-f671ec693efa","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":112,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"21a20b40-e9dd-4f29-a408-d2a2ec95415f","block_type":"box","text":"Legal and Regulatory Risks.","page_number":112,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"0e43706f-f117-4727-b17e-43cf7e91fb84","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":112,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"e41b1f4b-f7b2-4041-9b69-e42b077d159e","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":112,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"022e53bf-dfe5-4e60-9be9-ca89feb0eed2","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":112,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"3f99ef32-4980-4d22-b4c4-553aff90c1c8","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":112,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"98a191da-5ed2-4099-8916-c0039d3f714c","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":112,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"c9a8dbf1-631f-41bb-8fc1-01f1929e6ed7","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":112,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"8b8ab5d3-2856-49e2-9afc-484a61410616","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":112,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"0409b66f-c1a5-450e-bd34-bbf9c0c4537f","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":112,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"201cf4e9-1728-4f80-9703-6c095d47a900","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":112,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"384489ed-a198-4294-8074-c4a725a3830d","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":112,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"768d98db-7b97-4122-b859-9e095a46b041","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":112,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"a75f2e8b-3c83-4e2f-8b2b-3342d73b86d0","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":112,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"e32bf4d5-78f7-456a-b308-4dd86347bcff","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":112,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"4af81a36-ea1e-4337-87c8-9d299a31d074","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":112,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"1705f96e-ac1d-498c-8387-55696320c722","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":112,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"c71f8885-e6e0-4414-8b15-96013f0c3cb9","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":112,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"3c61e9d4-5bc8-40c2-b2f3-a1897de646f7","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":112,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"65a87467-0aa1-4bc0-aecb-8cae444ac69d","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":112,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"35297e9f-02c0-4d94-b43a-b8d3d88abc1c","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":112,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"a4a9aaa8-1e17-49af-a09e-646b88b52837","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":112,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"328292c3-dea8-49c5-a10d-1070ab46c57b","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":112,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"5abef6bf-e5d2-4fb9-9409-8bd503bf5162","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":112,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"9bc25fa5-440d-4a3f-a741-e22cfdb843e7","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":112,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"81d13020-ccbc-4fed-8245-b44fe70715e9","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":112,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"c6ef0a39-4511-4025-b7f9-ca2b9b64ed72","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":112,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"06fca1c4-be6e-4822-996b-30ef689862db","block_type":"box","text":"Geographic Risks","page_number":112,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"e10651ce-196c-40ee-8bd6-eb6ed3da17b5","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":112,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"f9a21157-103a-4286-8283-ab76fed934e7","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":112,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"40cb7f55-8f3f-4e86-9227-6656b9b43cd0","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":112,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"0a0187b4-e857-4dae-94ff-54e10d92162f","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":112,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"890d0b81-9807-4609-8e12-56df4f79a999","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":112,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"37779c3d-bf00-492d-9e8e-baaab9807492","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":112,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"d44ca207-d0ea-4329-b039-75ecffb3280d","block_type":"box","text":"Fund.","page_number":112,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"a2f3f141-c0f9-4f49-919c-ebab85751ed0","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":112,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"b597899e-fea9-424d-8f0d-fad6ab48921f","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":112,"box":{"x":363,"y":846,"width":514,"height":11}},{"id":"655b4723-b964-4504-a5a7-43cdc9d40a9e","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":112,"box":{"x":69,"y":861,"width":782,"height":11}},{"id":"983b9139-5c74-40bb-b2c0-cb3c9df84600","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mor tgage-related securities,","page_number":112,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"73866f14-ab52-4cac-9ff7-1547d4e8135f","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":112,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"d187f32b-3131-40cc-96fd-5ed6573548db","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":112,"box":{"x":69,"y":906,"width":834,"height":12}},{"id":"dec29ef8-217c-46cc-9937-613948cf2e72","block_type":"box","text":"II-68","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bd102f74-7890-47e7-8b5c-1f9845679293","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff78ae11-3326-414d-ace8-f250ec1fb32a","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":113,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"59cd4527-18de-439a-88a5-12cbfc31713e","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market par ticipants as a result of","page_number":113,"box":{"x":69,"y":60,"width":783,"height":11}},{"id":"b95d64f7-07b0-4237-8f38-14e03d2cdbb4","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":113,"box":{"x":69,"y":75,"width":779,"height":11}},{"id":"f6f753e8-8f66-4c39-8891-e8ad89fc9126","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":113,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"e7bcd8db-8f8d-4e54-8a9b-4208208f88c5","block_type":"box","text":"continuing to develop (","page_number":113,"box":{"x":69,"y":105,"width":160,"height":11}},{"id":"76649bd2-6601-4e62-8628-ca3a195702d6","block_type":"box","text":"e.g.","page_number":113,"box":{"x":231,"y":107,"width":25,"height":9}},{"id":"fa575439-b26f-49bf-ba3e-a080081a2880","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":113,"box":{"x":258,"y":105,"width":641,"height":11}},{"id":"2253da0f-1f50-49c3-ba64-d5abac27f539","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":113,"box":{"x":70,"y":120,"width":777,"height":12}},{"id":"821c95e2-9e33-4de3-8ef9-534d319af076","block_type":"box","text":"markets or par ticular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":113,"box":{"x":69,"y":135,"width":776,"height":11}},{"id":"f94a9585-465c-40ab-a404-ca1e959057a8","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":113,"box":{"x":70,"y":150,"width":493,"height":12}},{"id":"ec779ff9-7058-45e5-9a10-bec49d60cdf5","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":113,"box":{"x":102,"y":173,"width":750,"height":11}},{"id":"197cdd36-017f-403b-9838-4bcd7d4b1aae","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":113,"box":{"x":69,"y":188,"width":803,"height":11}},{"id":"5f902495-b69f-4629-bb6f-a0e975cb1007","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":113,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"1ee0686b-6f32-41ed-aac4-6b583ef47d1e","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":113,"box":{"x":70,"y":218,"width":801,"height":12}},{"id":"c487c4cb-3db6-41c8-8989-6ac05cafbf09","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":113,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"0ca39781-3c4e-46ee-99c6-961d2299082f","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":113,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"fc53864d-f660-4520-b2a8-e972017ae27d","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":113,"box":{"x":68,"y":264,"width":825,"height":11}},{"id":"d46fc194-e1fc-4e80-834e-0e0fb0366456","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":113,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"c0d67dd6-3980-4d62-8d9f-ae336cfe4d56","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":113,"box":{"x":70,"y":294,"width":838,"height":11}},{"id":"e282355e-c783-4842-946c-8112ca31c6d2","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":113,"box":{"x":69,"y":309,"width":796,"height":11}},{"id":"951afd13-2b73-4c2a-bfb0-827d8e8f155c","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":113,"box":{"x":70,"y":324,"width":836,"height":12}},{"id":"cc8ff979-197b-4ef0-8e17-53fa83401eb8","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":113,"box":{"x":70,"y":339,"width":824,"height":12}},{"id":"db70abd1-e87d-440b-a3ab-a4597be468ab","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":113,"box":{"x":69,"y":355,"width":830,"height":11}},{"id":"70b53b08-8e79-4987-8540-f8b32867b6ba","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s","page_number":113,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"1653efdd-f5c6-4411-94a0-30e39720d633","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":113,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"1da11adc-5b23-4e81-b087-72cd485bb529","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":113,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"1b962f49-d926-47f0-a342-50d622d9f8b5","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":113,"box":{"x":68,"y":415,"width":384,"height":11}},{"id":"e05ef7fd-77ff-4028-9e4d-0af6c93da707","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":113,"box":{"x":102,"y":438,"width":782,"height":11}},{"id":"17b9f328-a14c-4c7f-9c5b-44b67eefb080","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":113,"box":{"x":68,"y":453,"width":786,"height":11}},{"id":"9173706b-034e-41b5-9cd6-b7c561658fd0","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":113,"box":{"x":69,"y":468,"width":746,"height":11}},{"id":"3c1705a1-13b6-4eae-8506-db0348dc1b91","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":113,"box":{"x":70,"y":483,"width":822,"height":11}},{"id":"3adccf0b-0573-46e0-9337-d9d0bf364e9c","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":113,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"408be142-fd66-4782-9dea-138f3e45bb4e","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":113,"box":{"x":68,"y":513,"width":799,"height":12}},{"id":"2e14452f-455d-41f2-b55a-05ba000778fb","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":113,"box":{"x":70,"y":528,"width":830,"height":12}},{"id":"77416a6d-88b5-47b5-800f-52a30dabdfb6","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":113,"box":{"x":70,"y":543,"width":757,"height":12}},{"id":"2e8c2982-af53-4b7f-92b6-dfd42b1384de","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":113,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"e2fc604a-221e-4f30-b207-790c6228951a","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":113,"box":{"x":69,"y":574,"width":840,"height":11}},{"id":"5aafa362-dbff-469f-a2fd-8833cfb0db86","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":113,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"b857494f-f488-4e55-abfd-0015d7f54976","block_type":"box","text":"consequences which cannot be predicted.","page_number":113,"box":{"x":69,"y":604,"width":298,"height":11}},{"id":"07c4e4ca-8be8-4d1d-a325-9e0f6f70d037","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":113,"box":{"x":102,"y":627,"width":432,"height":11}},{"id":"93326529-8193-42d1-b4d6-e0fc93ec522c","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":113,"box":{"x":541,"y":627,"width":347,"height":11}},{"id":"5ef12853-d27d-4707-b8b9-a210e23abd94","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":113,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"5e0058d8-4e5b-41b8-9d76-e781c03e4a85","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":113,"box":{"x":68,"y":657,"width":815,"height":11}},{"id":"c3c7e9c8-cb98-4c98-b3ef-8ffb8ca67c34","block_type":"box","text":"term of the agreement.","page_number":113,"box":{"x":68,"y":672,"width":164,"height":11}},{"id":"227d210a-5499-46f3-83bb-b762b9969e4c","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":113,"box":{"x":101,"y":695,"width":788,"height":11}},{"id":"a4d26bc5-1b4e-455d-93b3-e453c2e1a316","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":113,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"72efd6c2-022b-46c1-abd4-29311a26c0ba","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":113,"box":{"x":70,"y":725,"width":821,"height":11}},{"id":"d28bcbfc-da52-48f0-baee-194ed50648fa","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":113,"box":{"x":69,"y":740,"width":790,"height":11}},{"id":"1d0c7e13-e164-4f2d-9f4f-a288e0ae21d0","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":113,"box":{"x":69,"y":755,"width":827,"height":11}},{"id":"7fc70959-5f04-43d0-8912-c9aba0379e5a","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":113,"box":{"x":69,"y":770,"width":788,"height":11}},{"id":"47d4e2a2-0983-4f6e-af0e-aaea79ecc17e","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":113,"box":{"x":68,"y":785,"width":522,"height":12}},{"id":"c561ffef-3989-452a-a455-f52fe806dcc1","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":113,"box":{"x":102,"y":808,"width":792,"height":11}},{"id":"8b106af9-64aa-4b95-8d3e-b5a6527163e9","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":113,"box":{"x":70,"y":823,"width":784,"height":12}},{"id":"18436d76-9c5c-494c-8ccb-d6af25a4d41c","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":113,"box":{"x":69,"y":838,"width":837,"height":12}},{"id":"40c4887b-d986-49fb-aa5a-8271ed66b217","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":113,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"b0ccf704-ccfc-472e-b6bf-3108972ac43d","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":113,"box":{"x":68,"y":869,"width":770,"height":11}},{"id":"60c716ee-df85-4934-80b9-c2c44a44694c","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":113,"box":{"x":69,"y":884,"width":802,"height":11}},{"id":"56f5837e-f399-4348-9c02-6677d80288af","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":113,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"9f17eff2-2fb3-470b-b6b1-8cfe2796419d","block_type":"box","text":"II-69","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5a561ff9-4270-4e26-a0f9-d09dc84d68c4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b26264dc-54ec-4a78-907a-d66910dd401f","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":114,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"41ff1424-16ea-46d2-9562-82e779aac369","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":114,"box":{"x":70,"y":60,"width":765,"height":11}},{"id":"ad13920d-2a3f-475e-962d-f2ffaf0abcb1","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":114,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"a5d3ab27-6d71-4c8b-9f46-997adcbe5239","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":114,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"af641ee3-b3f4-410d-81ef-689ee38f03fa","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":114,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"27987f74-e50c-406e-b767-d92494ecaed9","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":114,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"69f0e10f-97a7-4a30-99c2-dd7f0e97b2eb","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":114,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"b7b3d336-f791-454c-b93a-cabfa3538be4","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":114,"box":{"x":69,"y":151,"width":810,"height":11}},{"id":"d4e2e70c-d910-46e5-8a24-560b62153e50","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":114,"box":{"x":69,"y":166,"width":829,"height":11}},{"id":"79c16c81-4477-4f6a-8556-1a4b0ce97b9b","block_type":"box","text":"or by another authorized securities depository.","page_number":114,"box":{"x":69,"y":181,"width":329,"height":11}},{"id":"562c6590-04aa-4ac3-bd4d-770270350305","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":114,"box":{"x":102,"y":203,"width":770,"height":12}},{"id":"5b29a35c-7770-48a4-b74b-b7e602c0fb25","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":114,"box":{"x":69,"y":218,"width":805,"height":12}},{"id":"396c891a-9101-4652-8b66-cd9a1d980b93","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":114,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"054444b2-6194-410e-8de2-afc73843817a","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":114,"box":{"x":69,"y":249,"width":778,"height":11}},{"id":"59da778b-e40b-4cef-ab40-3f1cc70d03fd","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":114,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"89219293-932f-469f-822d-ba6c0180b0f8","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":114,"box":{"x":70,"y":279,"width":810,"height":11}},{"id":"93dc5363-2f70-4e8c-8220-56dcc95b2e58","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":114,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"9bca96b4-1415-4a68-ad5a-cdf19c53d30e","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":114,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"bfc33a51-fc4d-45b6-8ded-b5941c8ab0d9","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":114,"box":{"x":69,"y":324,"width":817,"height":12}},{"id":"2d0768ed-641c-41df-a48e-131a5aa48581","block_type":"box","text":"the repurchase price.","page_number":114,"box":{"x":68,"y":340,"width":151,"height":10}},{"id":"7f7fddba-a3e7-4f05-8ff5-96fa0fd2dd9c","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":114,"box":{"x":102,"y":362,"width":805,"height":11}},{"id":"68054006-93b5-461e-8eb5-d035ae9ffecc","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":114,"box":{"x":70,"y":377,"width":837,"height":12}},{"id":"95ff1219-96d4-4212-aff0-c1fb88804126","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":114,"box":{"x":69,"y":392,"width":788,"height":12}},{"id":"4682847f-5c9a-4e4f-97bc-e247408341a2","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":114,"box":{"x":69,"y":408,"width":767,"height":11}},{"id":"e4df4472-4733-4194-96d3-fe783be5babf","block_type":"box","text":"strategies without the repurchase obligation.","page_number":114,"box":{"x":69,"y":423,"width":317,"height":11}},{"id":"5f09eaa0-ab34-4355-ae37-d6435e404cab","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":114,"box":{"x":101,"y":445,"width":782,"height":12}},{"id":"00079edd-8f84-45e1-a6a2-9ad28c2a42d8","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":114,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"2f475831-0880-4e65-85a6-a97b59daae1f","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":114,"box":{"x":69,"y":475,"width":799,"height":12}},{"id":"38ad69ba-877b-49f4-a572-e50ff928dbc3","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":114,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"7a331c3c-0d4a-4301-af41-188a4f625557","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":114,"box":{"x":68,"y":506,"width":825,"height":11}},{"id":"eb044f7a-e414-4700-ae43-484076876f27","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":114,"box":{"x":69,"y":521,"width":374,"height":11}},{"id":"4296b76b-47bc-41df-a730-86732251f7dd","block_type":"box","text":"i.e.","page_number":114,"box":{"x":445,"y":521,"width":20,"height":9}},{"id":"b90d090b-8a35-4bb7-95c5-9cc104cda842","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":114,"box":{"x":468,"y":521,"width":434,"height":11}},{"id":"e4850d4e-3283-4079-8300-9827a187ed1a","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":114,"box":{"x":70,"y":536,"width":813,"height":11}},{"id":"e55de47e-4fe5-49bd-9710-c9148bb66911","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":114,"box":{"x":68,"y":551,"width":816,"height":11}},{"id":"95da5f73-65c4-4c0f-abf5-ead2a1abcd66","block_type":"box","text":"and income involved in the transaction.","page_number":114,"box":{"x":69,"y":566,"width":278,"height":9}},{"id":"db4e760e-1a69-44e0-80e8-8e97848d7c2a","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":114,"box":{"x":102,"y":589,"width":800,"height":11}},{"id":"0c35047b-8f67-4e8f-96ed-c4b4aad1914c","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":114,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"9c957c84-2afe-421d-a0a3-0b3bec296203","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":114,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"382c10e8-f015-408a-ab11-8508b193e7bd","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":114,"box":{"x":68,"y":634,"width":790,"height":12}},{"id":"1b5a5ada-ad9a-4f7a-a2fc-e2b58e865bff","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":114,"box":{"x":69,"y":649,"width":818,"height":12}},{"id":"b3ec7306-7adf-4957-bdef-857b2e79e03b","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":114,"box":{"x":68,"y":665,"width":783,"height":11}},{"id":"24658503-de1a-48a3-a31c-0615c757dd9d","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":114,"box":{"x":69,"y":680,"width":821,"height":11}},{"id":"12082896-a5e4-49d9-831a-e995aa7286af","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":114,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"0f172587-185d-4266-85fc-a80e2ad267e5","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":114,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"c7fa4319-9262-4a64-92dc-0eb8a5b65c3d","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":114,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"c40d7122-a1db-4b04-aca5-6312dda3b476","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":114,"box":{"x":68,"y":740,"width":824,"height":11}},{"id":"8e9be139-aa57-4b06-a2d6-985336ef59ec","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":114,"box":{"x":69,"y":755,"width":279,"height":11}},{"id":"c39423a0-479c-473a-9db8-21b4a81c7e33","block_type":"box","text":"Restricted Securities.","page_number":114,"box":{"x":102,"y":778,"width":157,"height":9}},{"id":"2cdb3794-c164-4dc5-8388-6980a4b159cd","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":114,"box":{"x":265,"y":778,"width":617,"height":11}},{"id":"84bb8437-0f4a-44ec-8ddf-a3c39c74a06e","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":114,"box":{"x":69,"y":793,"width":801,"height":11}},{"id":"3a444601-d73b-482b-8d0a-d599e05fe1a8","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":114,"box":{"x":69,"y":808,"width":808,"height":11}},{"id":"5f4a9960-72b0-403c-b5f9-c3b868d788da","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":114,"box":{"x":70,"y":823,"width":802,"height":12}},{"id":"b56ef6a1-a889-4d2d-b256-d71f81dfbbaa","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":114,"box":{"x":70,"y":839,"width":834,"height":11}},{"id":"adc967db-8d3c-4fee-a6a2-562e3f56a922","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":114,"box":{"x":68,"y":853,"width":825,"height":12}},{"id":"54717b1e-1f49-4c67-8d32-1ee1e94c71f9","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":114,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"a276893d-2a5e-456c-8cab-3f3386b5d90f","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":114,"box":{"x":69,"y":884,"width":821,"height":11}},{"id":"912829e9-2bf6-4dce-82ba-eca14a6d5d61","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":114,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"71f959b4-2b85-49c8-80f4-71b259bdb6f4","block_type":"box","text":"II-70","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3fefe65c-7bf0-4a8f-ab23-c5f8d6a02e92","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e04d207-f7d0-43bb-8d72-4d098e3e4290","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":115,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"5fa6e148-ceb5-484f-8ea7-b54a121be2a0","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":115,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"f15acf99-a82f-42e3-b411-49bc23510ea8","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":115,"box":{"x":69,"y":75,"width":769,"height":11}},{"id":"4e8f910b-b4c9-444e-b141-e44738f09a9f","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":115,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"05060cb1-593e-4d10-a8fa-3e42408b0371","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":115,"box":{"x":68,"y":105,"width":805,"height":11}},{"id":"4fb6f17f-0121-4858-ba41-a0c7544ed391","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":115,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"8671177b-c168-49c2-a8d7-045a5d0068db","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":115,"box":{"x":70,"y":135,"width":815,"height":12}},{"id":"2eb106ad-09f4-4303-99d2-9106621b9d11","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":115,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"b8b847f1-615f-4c2d-bf18-bbc41a62fdb1","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":115,"box":{"x":69,"y":166,"width":803,"height":11}},{"id":"f9a94520-3efc-40dd-9cea-c0a2312e1cd5","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":115,"box":{"x":70,"y":181,"width":830,"height":11}},{"id":"1dab99f8-b10b-4aa9-9df3-5a5bbdbb453a","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":115,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"affbeaad-6521-406e-bd44-a95bf3ca6cc4","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":115,"box":{"x":68,"y":211,"width":825,"height":11}},{"id":"68b9fd5a-d09b-4479-87d2-cc52f2e86804","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":115,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"4f2dfea2-6639-48b1-8274-42648f7800b9","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":115,"box":{"x":69,"y":241,"width":828,"height":11}},{"id":"ef1e54a5-3587-46e1-872a-32bb672b3151","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":115,"box":{"x":69,"y":256,"width":834,"height":12}},{"id":"361c7d72-769e-43c4-bc9c-ea046ffa9393","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":115,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"7c5cab8e-a983-4dac-b251-e3a697b76825","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":115,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"696b9fe4-4152-4172-b924-ca1410ea233e","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":115,"box":{"x":68,"y":302,"width":819,"height":11}},{"id":"9010e4ce-86a5-4370-9ebb-f4cb96d58e23","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":115,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"f32f7a97-84ad-4a2c-aa78-dddeeab53e0c","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":115,"box":{"x":69,"y":332,"width":798,"height":11}},{"id":"c7e93001-d167-4333-b466-33dece50c7c3","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":115,"box":{"x":70,"y":347,"width":780,"height":11}},{"id":"8c968439-7f02-45ca-b57d-8daf213dd796","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":115,"box":{"x":70,"y":362,"width":773,"height":11}},{"id":"3dae4932-9f3c-461f-a019-6e8e8434dfe1","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":115,"box":{"x":69,"y":377,"width":784,"height":12}},{"id":"a55b25dc-3fad-44ad-bcd7-4766c6e7c519","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":115,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"349876e0-cfa2-4420-a80f-9fea52bd578a","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":115,"box":{"x":69,"y":407,"width":828,"height":12}},{"id":"34fbea51-84f7-4067-ae4a-1322439a1084","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":115,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"20f5ee2a-1d14-43a6-9ad9-b0d5820ea669","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":115,"box":{"x":68,"y":438,"width":804,"height":11}},{"id":"353e5ad7-3093-4b4a-87cc-673c02c1e360","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":115,"box":{"x":69,"y":453,"width":647,"height":11}},{"id":"42425d95-cf40-4fc8-ae8c-02a899b73f75","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":115,"box":{"x":102,"y":476,"width":714,"height":11}},{"id":"3d114745-f7a2-4bad-a6c8-a5ed8abf5efc","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":115,"box":{"x":70,"y":491,"width":823,"height":11}},{"id":"b61d6e9b-3fa7-4a70-b575-5367a25cab1f","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":115,"box":{"x":70,"y":506,"width":826,"height":11}},{"id":"d94de72d-6627-4d7d-8dcd-56e0f0058943","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":115,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"fbd7ef5e-472f-491e-be2a-aa815a7b97e9","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":115,"box":{"x":69,"y":536,"width":812,"height":11}},{"id":"467fb2f8-37ef-40df-ba0f-04bdd2fc85b8","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":115,"box":{"x":69,"y":551,"width":787,"height":11}},{"id":"512fab93-8f32-4ef9-90a5-e9c922f68c8a","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":115,"box":{"x":69,"y":566,"width":833,"height":11}},{"id":"7253d65a-79c6-430e-98b0-d96adba19ab2","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":115,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"4f0861f6-61c0-4fd2-863a-38e5a84a4ca0","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":115,"box":{"x":70,"y":596,"width":833,"height":12}},{"id":"6dfa98cd-2ccb-4727-83f8-5026fb6b87ad","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":115,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"f1f449dc-7e2e-4191-9b87-5101cd9a7893","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":115,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"4d08cab4-d75d-40fb-88c6-5f4996e6cadf","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":115,"box":{"x":70,"y":642,"width":804,"height":11}},{"id":"fc7d764a-3291-4f52-b25c-12a4580ab097","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":115,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"87180ee3-4979-415b-9b4b-a35098e7c242","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":115,"box":{"x":70,"y":672,"width":835,"height":11}},{"id":"2bd5f826-108f-4828-b59b-63b3877477f2","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":115,"box":{"x":69,"y":687,"width":768,"height":11}},{"id":"3e43816f-5deb-4efa-9301-b3344ce30625","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":115,"box":{"x":70,"y":702,"width":815,"height":12}},{"id":"41386ed6-544e-4633-b631-fc6a32e6a25a","block_type":"box","text":"especially as that Fund grows in size.","page_number":115,"box":{"x":69,"y":718,"width":264,"height":11}},{"id":"a92e144e-de71-403e-b5c5-f33d2f30dd3f","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":115,"box":{"x":101,"y":740,"width":762,"height":11}},{"id":"c10163ea-8adc-47a9-8325-1953a34809d9","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":115,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"62f88ffc-5e29-4b13-81ba-fe3c90c884f8","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":115,"box":{"x":69,"y":771,"width":751,"height":11}},{"id":"02fb209e-3b47-437e-b7dc-4c0549ea8916","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":115,"box":{"x":70,"y":785,"width":755,"height":12}},{"id":"deb3ee39-6c88-44fd-a23c-f3deb0f4e56e","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":115,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"23994ebe-50d0-4a20-b62c-40704dec57fc","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":115,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"dd3023cf-e907-4165-9ec7-6fcf377dcbf1","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":115,"box":{"x":68,"y":831,"width":766,"height":11}},{"id":"5092ff63-8ee2-4307-9737-52b44a623669","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":115,"box":{"x":69,"y":846,"width":792,"height":11}},{"id":"04d1db96-b57a-49a7-b95d-ff5df7323f27","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":115,"box":{"x":70,"y":861,"width":821,"height":11}},{"id":"fb8a763c-abc6-41e5-b81d-063ab2610507","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":115,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"dfe29c30-0b60-4cfb-877d-3115be9d5c30","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":115,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"bf3a0d20-aba5-4a4e-af62-6cdbd2c63103","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":115,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"1d44086b-d9a1-49fb-84c8-c4f787600054","block_type":"box","text":"II-71","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e685933d-3267-4ef2-be0f-9782f5fffc26","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6290a0aa-1b4e-41a9-bd96-aadecf8304d5","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":116,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"cfc1e64e-d0c5-4e89-80aa-1275f6260435","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":116,"box":{"x":69,"y":60,"width":810,"height":11}},{"id":"b68a5d2f-046f-4b53-9f9c-5cade9c9bbd0","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":116,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"52aa47db-7c2a-468e-ace8-23e3ec33d00c","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":116,"box":{"x":68,"y":90,"width":839,"height":11}},{"id":"77dd4714-d5b4-4eec-b4af-26f7839adb7a","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":116,"box":{"x":68,"y":105,"width":514,"height":11}},{"id":"6b50b541-2980-49ec-b738-ce52eda6ad1f","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":116,"box":{"x":102,"y":128,"width":385,"height":11}},{"id":"19268ffc-7169-485c-a40d-d5a57eaeccee","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":116,"box":{"x":102,"y":151,"width":246,"height":11}},{"id":"dc5684f5-60ad-427d-868e-7541a91f0fbd","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":116,"box":{"x":354,"y":151,"width":548,"height":11}},{"id":"5852efad-c967-4342-9de8-a6151bed6ad4","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":116,"box":{"x":68,"y":166,"width":830,"height":11}},{"id":"d76f0937-2d83-47ac-9fad-b8cb441d1322","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":116,"box":{"x":68,"y":181,"width":793,"height":11}},{"id":"eab5c921-1f89-4f31-84cd-e2011ec434ea","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":116,"box":{"x":69,"y":196,"width":784,"height":11}},{"id":"36ed01dc-9766-4fd6-806a-91eb562ad85d","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":116,"box":{"x":70,"y":211,"width":591,"height":11}},{"id":"df9e541e-145a-42e3-9a98-da0afbcee147","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":116,"box":{"x":101,"y":234,"width":730,"height":11}},{"id":"ef2456b9-9fab-4d02-8e26-67622c9cefc1","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":116,"box":{"x":70,"y":249,"width":822,"height":11}},{"id":"4ce36041-7fb1-4a82-b06a-610f9ab97377","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":116,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"32c10719-0425-4d7d-b03b-77e5fec8ce4f","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":116,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"5bb9f0de-7498-4d89-b2f9-408d548a0af1","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":116,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"f9995233-22a1-40bd-8061-ca0aab2f2f2a","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":116,"box":{"x":69,"y":309,"width":354,"height":11}},{"id":"04f90f54-ca70-4a75-afda-d97ea8be2a55","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":116,"box":{"x":102,"y":332,"width":769,"height":11}},{"id":"4ad9ec0b-8b2d-4576-a508-738ee1448fca","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":116,"box":{"x":70,"y":347,"width":815,"height":11}},{"id":"554ef2ce-f8bf-44e4-a019-69480d0c6901","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":116,"box":{"x":70,"y":362,"width":782,"height":11}},{"id":"502da079-9546-4371-a3db-3f53b1bcd5cf","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":116,"box":{"x":69,"y":377,"width":449,"height":12}},{"id":"371464bb-3a02-4934-892f-dc8cc7b47b45","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":116,"box":{"x":102,"y":400,"width":794,"height":11}},{"id":"a446377c-ba38-4646-a7a5-e1d831646953","block_type":"box","text":"similar financing transactions (","page_number":116,"box":{"x":69,"y":415,"width":218,"height":11}},{"id":"7d07bf50-cde7-49f3-bf65-2dfa10644e15","block_type":"box","text":"e.g.","page_number":116,"box":{"x":289,"y":417,"width":24,"height":9}},{"id":"26cb0342-d212-4d3f-b4e9-f46dd2239a82","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":116,"box":{"x":316,"y":415,"width":594,"height":11}},{"id":"b02b7eef-27b1-48ec-ab08-e16835cb36a1","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":116,"box":{"x":68,"y":430,"width":813,"height":11}},{"id":"206a978b-c26b-464d-8161-f2458596bb33","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":116,"box":{"x":70,"y":445,"width":789,"height":12}},{"id":"230ed747-a5ef-415f-b44c-8e439b266e33","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":116,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"4804ed0e-e75f-4c67-8c1e-c305ce4237ee","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":116,"box":{"x":70,"y":475,"width":824,"height":12}},{"id":"dc9ee138-b8e7-45e7-a8ec-5f9b0269d70a","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":116,"box":{"x":68,"y":491,"width":758,"height":11}},{"id":"5ce933b0-2446-4f5d-89da-0e76f2533227","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":116,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"4a80faf8-9064-4ec3-bc25-9dd6718214d5","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":116,"box":{"x":68,"y":521,"width":838,"height":11}},{"id":"34156ef7-a1c1-4e33-b547-ae260e80f730","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":116,"box":{"x":69,"y":536,"width":538,"height":11}},{"id":"b4a1cb09-c10d-46bf-950f-ca042c3aeed7","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":116,"box":{"x":101,"y":559,"width":780,"height":11}},{"id":"2338d5be-7abb-4297-a67a-1639fe234a8f","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":116,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"bec2a884-4849-4c11-a24d-85b4c88d8f78","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":116,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"cf8d1fdf-d38c-40c5-acfc-000f9d0e78f9","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":116,"box":{"x":68,"y":604,"width":754,"height":11}},{"id":"3202af94-b523-4f00-a763-c0a57c5f4aad","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":116,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"960c5d15-c9ac-48e8-a3ac-d4c8bead17ec","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":116,"box":{"x":68,"y":634,"width":783,"height":12}},{"id":"a284b40b-7254-4e62-b967-d9be090eebc4","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":116,"box":{"x":69,"y":649,"width":800,"height":12}},{"id":"82ed6a39-ca6f-45ab-9994-92f7a761c60a","block_type":"box","text":"amounts to be received under such agreements.","page_number":116,"box":{"x":69,"y":665,"width":345,"height":11}},{"id":"3d527d2d-4cfa-4d89-afb7-f6af22f7e616","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":116,"box":{"x":102,"y":687,"width":316,"height":11}},{"id":"0299f15d-a7c7-45cb-935d-142e3fcef657","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":116,"box":{"x":424,"y":687,"width":481,"height":11}},{"id":"e44891b5-1788-4b89-8380-898ddab04900","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":116,"box":{"x":68,"y":702,"width":822,"height":12}},{"id":"7538b804-8183-44d0-b5e7-1b1e8577e254","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":116,"box":{"x":69,"y":717,"width":776,"height":12}},{"id":"58028f37-f3b0-4bbc-87c7-da9728bb3060","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":116,"box":{"x":69,"y":732,"width":817,"height":12}},{"id":"ac958126-7529-4bbe-9c0f-e74532d0b0d9","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":116,"box":{"x":70,"y":748,"width":833,"height":11}},{"id":"e9e77068-ff39-4a63-b7af-0c9f486053f4","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":116,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"ffd3457d-de95-41cf-a49f-b5b46f189f4f","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":116,"box":{"x":70,"y":778,"width":821,"height":11}},{"id":"796ed020-0fd1-4ccc-a4c8-4284cc25075d","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":116,"box":{"x":69,"y":793,"width":830,"height":11}},{"id":"e72a9802-9f50-4f94-b896-e9622054c874","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":116,"box":{"x":69,"y":808,"width":777,"height":11}},{"id":"d3814ba4-167b-4ce5-8a8f-6388b9864a19","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":116,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"5a4a9438-3dad-4791-b4e7-8530da1d8d34","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":116,"box":{"x":68,"y":839,"width":708,"height":10}},{"id":"4ac3a349-4323-4748-af4b-13521943872e","block_type":"box","text":"Rule 144A Securities.","page_number":116,"box":{"x":102,"y":861,"width":159,"height":9}},{"id":"5c9154a8-b575-481c-bda7-79f92c2adf91","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":116,"box":{"x":266,"y":861,"width":560,"height":11}},{"id":"12ade898-4f19-409b-b82e-f0b3e82cee84","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":116,"box":{"x":70,"y":876,"width":741,"height":11}},{"id":"c4c1963e-641e-4bb3-9830-fe6d6ead8f03","block_type":"box","text":"II-72","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"50806e18-3e5c-4bdb-ade2-96a9da6fa006","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9e7c62f5-3cd6-41b5-a35a-9ff91d20b541","block_type":"box","text":"Securities Lending.","page_number":117,"box":{"x":101,"y":45,"width":139,"height":11}},{"id":"0163a256-e4a2-4ccf-afb8-b87dea6e6d29","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":117,"box":{"x":247,"y":45,"width":645,"height":11}},{"id":"d8b474c0-e4e2-423c-8115-83507aadb667","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":117,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"899ad403-36b4-4ccd-bbcc-96da1a83a4b8","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":117,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"c786da4f-f8c7-47a6-9ad9-207fead3cd63","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":117,"box":{"x":69,"y":90,"width":831,"height":11}},{"id":"4c44da16-b386-43d8-a222-96e9c710ec69","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":117,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"df52fbee-b95b-4bcb-89de-71f2a128907e","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":117,"box":{"x":69,"y":120,"width":829,"height":11}},{"id":"cfd0be08-d2a6-4da1-af16-f7df69e3fcde","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":117,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"8cbed2a3-44fc-422f-91d8-3a814084a4c8","block_type":"box","text":"the securities were not on loan.","page_number":117,"box":{"x":68,"y":151,"width":225,"height":8}},{"id":"0a45ea50-aa56-4c3f-83c8-b8e8e6601a7f","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":117,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"318ef0ae-be1c-4dc9-936f-175901c140cb","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":117,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"bcc06454-4f7f-4384-93ef-37f0efe29ef4","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":117,"box":{"x":69,"y":203,"width":824,"height":11}},{"id":"642fd3fb-31fa-4d2c-8033-8b4de1396119","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":117,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"f16ddf8e-e233-468b-9424-c77e3877d7b3","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":117,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"98da37f7-94d3-4a03-a25c-849880d2d11c","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":117,"box":{"x":70,"y":249,"width":789,"height":11}},{"id":"8503c5c6-d384-499b-9116-c7562d5a0508","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":117,"box":{"x":70,"y":264,"width":643,"height":11}},{"id":"43f8903d-789e-4737-9091-13bf2a63f80f","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":117,"box":{"x":102,"y":287,"width":568,"height":11}},{"id":"21e767ae-1cc0-49fe-9e30-d77fa4242724","block_type":"box","text":"i.e.","page_number":117,"box":{"x":672,"y":287,"width":20,"height":9}},{"id":"426894b2-0ce8-4c15-b0af-8734cfb017af","block_type":"box","text":", the risk of losses resulting","page_number":117,"box":{"x":695,"y":286,"width":198,"height":12}},{"id":"9423a9bd-26dd-4f31-9a9a-779c79d97b04","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":117,"box":{"x":68,"y":302,"width":501,"height":11}},{"id":"b1100352-6e88-4aa3-ac7b-1082d2094c2b","block_type":"box","text":"i.e.","page_number":117,"box":{"x":571,"y":302,"width":20,"height":9}},{"id":"e3b35645-a6b2-4cc4-bad5-b39247960f78","block_type":"box","text":", the risk of a mismatch between the return","page_number":117,"box":{"x":594,"y":302,"width":307,"height":10}},{"id":"749ea745-c97d-4e26-97c1-177264a12083","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":117,"box":{"x":69,"y":317,"width":794,"height":11}},{"id":"d7169448-401f-4b82-8c5c-c9f1ca665b72","block_type":"box","text":"i.e.","page_number":117,"box":{"x":865,"y":317,"width":20,"height":9}},{"id":"20425eaf-1837-43c3-b0d3-3bcba7231e37","block_type":"box","text":",","page_number":117,"box":{"x":888,"y":324,"width":2,"height":3}},{"id":"59847e4a-1263-43fc-9666-1a49f75b69f4","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":117,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"aea2e43d-793a-4199-bf97-40e3c3df9552","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":117,"box":{"x":69,"y":347,"width":837,"height":11}},{"id":"5f1b8bc5-386b-4e29-94fa-89c980ce9581","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":117,"box":{"x":69,"y":362,"width":822,"height":11}},{"id":"6e19a98a-f8df-47e9-b318-f7b316042d1a","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":117,"box":{"x":68,"y":377,"width":811,"height":12}},{"id":"1f16e665-219c-4a80-b9e0-523323629f4d","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":117,"box":{"x":70,"y":392,"width":820,"height":12}},{"id":"cf636c27-5bfb-4f7d-93dc-46f52c451d90","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":117,"box":{"x":69,"y":408,"width":790,"height":11}},{"id":"03db5118-4cbe-47a0-a749-9d6afc8859ca","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":117,"box":{"x":70,"y":423,"width":820,"height":11}},{"id":"ea15ac95-5b29-4ec8-99b5-74586c9d4383","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":117,"box":{"x":70,"y":438,"width":805,"height":11}},{"id":"bb834859-a1bc-4ca4-a251-e16c1a8a44e2","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":117,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"abcfc809-2667-4ec8-99c8-34d1658e49e1","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":117,"box":{"x":69,"y":468,"width":775,"height":11}},{"id":"869b93cd-c781-4d00-8c5e-3fbf69d903c9","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":117,"box":{"x":69,"y":483,"width":821,"height":11}},{"id":"dbaeffce-36de-44d2-889d-bf2fcba58289","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":117,"box":{"x":69,"y":498,"width":838,"height":11}},{"id":"28faf59c-6959-4ca5-a78b-1d1de8cb4e6c","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":117,"box":{"x":70,"y":513,"width":837,"height":11}},{"id":"011538fc-b328-4b1c-8c72-40f7faf6e86d","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":117,"box":{"x":70,"y":528,"width":808,"height":12}},{"id":"893d1695-dfc5-407d-a18f-b7bb58e00cdd","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":117,"box":{"x":69,"y":543,"width":839,"height":12}},{"id":"5e1ce171-929c-4947-bccf-05a2ea70c47f","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":117,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"62690885-886f-4d74-bd61-2e80f65a4c18","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":117,"box":{"x":69,"y":574,"width":801,"height":11}},{"id":"36ebfa3d-4e9a-455e-8c7b-ea60e33dc4d3","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":117,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"00a5ae31-533c-44c1-a6f4-fc87500f5d64","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":117,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"d1b38bcc-8478-4c43-9bed-cb093b7c7ff6","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":117,"box":{"x":69,"y":619,"width":812,"height":11}},{"id":"0362270e-c3bf-4119-8c8a-af64e3ca3ffc","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":117,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"2f7191eb-d682-4f13-bd08-2960960d835f","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":117,"box":{"x":68,"y":649,"width":787,"height":12}},{"id":"3c8d1b15-5e09-405e-a5ab-64ff15ac0291","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":117,"box":{"x":69,"y":665,"width":828,"height":11}},{"id":"ae5e0c81-6c4e-472f-a579-14a517d423a6","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":117,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"c628dcfc-9696-4fe0-aee9-42275697c5eb","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":117,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"dfd3c5b4-7ab2-40cf-8811-2f94ffbca73f","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":117,"box":{"x":69,"y":710,"width":731,"height":11}},{"id":"041340ed-56f1-49cf-bd76-9f44e5f7121a","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":117,"box":{"x":102,"y":732,"width":800,"height":12}},{"id":"9572926c-f79b-49d8-a52e-007593189987","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":117,"box":{"x":68,"y":748,"width":802,"height":11}},{"id":"14b74958-3288-4f09-9968-ef389138212b","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":117,"box":{"x":69,"y":763,"width":783,"height":11}},{"id":"21bc7032-e6b2-47ab-acb6-dd60b10ba6cb","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":117,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"955e2234-4d1d-41d6-8058-39decfc67956","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":117,"box":{"x":70,"y":793,"width":747,"height":11}},{"id":"07f2d6e4-f260-4639-90b5-ba5d2bfa83e0","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":117,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"15c76247-6f1b-458b-bad2-8f0e8fe5f9dd","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":117,"box":{"x":69,"y":823,"width":808,"height":12}},{"id":"ec07777c-e661-481e-9280-516a5cb01331","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":117,"box":{"x":69,"y":838,"width":839,"height":12}},{"id":"d99ba2f9-5a7b-4ffa-81cf-d56a036cdf0d","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":117,"box":{"x":69,"y":853,"width":827,"height":11}},{"id":"02781a27-c674-4363-b20c-241330895dba","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":117,"box":{"x":69,"y":869,"width":794,"height":11}},{"id":"26ad09a6-cd8a-48cd-bd08-33ba06a4fb85","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":117,"box":{"x":69,"y":884,"width":371,"height":11}},{"id":"b9fdb851-ec6d-4ba5-b840-da2d3516c46b","block_type":"box","text":"II-73","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"917d3f38-3945-48bc-90a7-3a63af03e8f3","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cad3326-41b1-443b-a03a-e0b5e74afa85","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":118,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"ff56db5e-f8bd-4554-9a13-398633a39192","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":118,"box":{"x":70,"y":60,"width":808,"height":11}},{"id":"b783711d-84b6-4e26-b040-174b2bf65402","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":118,"box":{"x":69,"y":75,"width":784,"height":11}},{"id":"c6cd3c6f-ea9d-4512-9c16-728f699b79a8","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":118,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"4fad155b-2394-494a-80bb-d8dc5f72a65a","block_type":"box","text":"the current expected compliance date.","page_number":118,"box":{"x":68,"y":105,"width":273,"height":11}},{"id":"e29c1755-dfcf-4fba-8f3a-438fed2840b8","block_type":"box","text":"Short Sales.","page_number":118,"box":{"x":101,"y":128,"width":89,"height":9}},{"id":"f780537f-3b64-4783-abad-e01686632d85","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":118,"box":{"x":196,"y":128,"width":696,"height":11}},{"id":"354d4745-725d-49f3-9dc3-3c62a0549bb2","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":118,"box":{"x":68,"y":143,"width":821,"height":11}},{"id":"f6a009ab-71ca-478d-8753-4e3235766eff","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":118,"box":{"x":69,"y":158,"width":778,"height":11}},{"id":"2b9dae02-a781-4f87-a8e9-86790d94dc6c","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":118,"box":{"x":70,"y":173,"width":831,"height":11}},{"id":"39e6fe50-51b8-4e2e-bd22-857cbe8a351c","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":118,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"dd13ecbf-a186-48e5-bf3c-b52e650608f2","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":118,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"d004021e-1d77-4306-9ab0-3a9d4c42aab3","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":118,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"133fc895-adea-4674-b659-41224daea933","block_type":"box","text":"securities to the lender of the securities.","page_number":118,"box":{"x":69,"y":234,"width":289,"height":9}},{"id":"e5c4ab41-66e0-4d24-95f6-0efd5d727547","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":118,"box":{"x":101,"y":257,"width":772,"height":11}},{"id":"cac41980-98f6-4cdb-92ae-311900362331","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":118,"box":{"x":69,"y":272,"width":795,"height":11}},{"id":"5ad9c10c-f295-4f0e-b272-f8dcbcd96f2a","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":118,"box":{"x":69,"y":286,"width":801,"height":12}},{"id":"6a6468c6-f05e-4e46-8450-c0e3629c51e1","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":118,"box":{"x":69,"y":302,"width":830,"height":11}},{"id":"a0d1d752-92d8-4c40-ace4-993d040a1b32","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":118,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"2f588a6b-f909-411f-b42a-6ed29a01bbd5","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":118,"box":{"x":69,"y":332,"width":770,"height":11}},{"id":"27e5eebb-bf9b-4b1f-a8ce-7a48ca16d40b","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":118,"box":{"x":70,"y":347,"width":568,"height":11}},{"id":"c5b43d70-cd2d-4a75-b718-eaca3587b40c","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":118,"box":{"x":102,"y":370,"width":806,"height":11}},{"id":"ac38dddf-3796-4ef6-90c0-63abb9e0a4bb","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":118,"box":{"x":69,"y":385,"width":817,"height":11}},{"id":"c49e1491-584b-4bee-a668-74873605b201","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":118,"box":{"x":68,"y":400,"width":819,"height":11}},{"id":"142de9fa-5d70-42a3-b439-28635a4c4b37","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":118,"box":{"x":69,"y":415,"width":758,"height":11}},{"id":"8a83fc6f-a39a-4386-8418-11742bd18d5f","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":118,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"95eb4f5a-188f-4eac-9652-523f8ac74eb8","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":118,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"d8071e93-7b51-463f-9164-e15ddb0092df","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":118,"box":{"x":69,"y":461,"width":818,"height":11}},{"id":"c4586352-1626-41b2-adcf-27ee4d97a932","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":118,"box":{"x":68,"y":475,"width":821,"height":12}},{"id":"1d653fc5-6035-48bd-bf77-0f9803ba5876","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":118,"box":{"x":69,"y":491,"width":640,"height":11}},{"id":"f00d6730-3131-4bb5-a494-414941952d01","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":118,"box":{"x":101,"y":514,"width":673,"height":11}},{"id":"c30ac858-5774-4556-9a3e-ae8f0c1b0704","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":118,"box":{"x":101,"y":536,"width":721,"height":11}},{"id":"c22f66c4-195a-419e-ac63-217280ff3de8","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":118,"box":{"x":69,"y":551,"width":791,"height":11}},{"id":"5b759b91-4c5a-478c-8dc3-89538109f361","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":566,"width":489,"height":11}},{"id":"632dc0c5-b6ab-4cb1-855b-e722efdac27b","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":118,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"d8383d4c-17f2-4e35-93e6-e49e3d18e640","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":118,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"570eb30c-9a43-41f9-afca-84090a57ce95","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":118,"box":{"x":69,"y":619,"width":796,"height":11}},{"id":"a5e219d8-22b9-4200-90a3-a19eeb5012b3","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":118,"box":{"x":70,"y":634,"width":766,"height":12}},{"id":"4f8703b4-b670-412b-87a2-93540abfc543","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":118,"box":{"x":70,"y":649,"width":754,"height":12}},{"id":"aad1808d-97a4-4509-9d17-584ff367a69e","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":118,"box":{"x":67,"y":664,"width":800,"height":12}},{"id":"aaa18ee5-0b3f-49ea-94b3-3bf30fd7acdf","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":118,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"99544cbd-98a2-48ed-937f-74ffac0eb3de","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":118,"box":{"x":69,"y":695,"width":782,"height":11}},{"id":"b4b61826-8349-4304-ac01-d90b2a302532","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":118,"box":{"x":69,"y":710,"width":460,"height":11}},{"id":"70faa8fc-519a-4306-8bf1-d3f7cc1fec02","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":118,"box":{"x":101,"y":733,"width":293,"height":11}},{"id":"8d671a71-7538-46e9-8738-d5b3d710465b","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":118,"box":{"x":400,"y":733,"width":504,"height":11}},{"id":"721432d0-df7e-4c64-8d41-a13954ef8df5","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":118,"box":{"x":69,"y":748,"width":791,"height":11}},{"id":"4991292f-0fe7-4d13-bfee-440ac652b8fd","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":118,"box":{"x":70,"y":763,"width":793,"height":11}},{"id":"5a75f849-9e7c-43b9-a6f7-d28ef9820b29","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":118,"box":{"x":70,"y":778,"width":824,"height":11}},{"id":"eecd600b-a897-4227-bd1c-f82951772937","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":118,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"1b2df877-65ac-4d49-9ade-d5e5dcbdf9b6","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":118,"box":{"x":69,"y":808,"width":768,"height":11}},{"id":"629ec091-f4b1-436d-b4c3-dd4796eea3c2","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":118,"box":{"x":70,"y":823,"width":826,"height":12}},{"id":"30e4cbd7-209e-4a74-b90c-d14c370fe850","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":118,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"2b929b62-8ada-4615-8698-79c4faefc786","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":118,"box":{"x":70,"y":854,"width":797,"height":11}},{"id":"9c6a2494-8678-4df1-b84b-608b78243e5d","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":118,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"fe695b37-d6f0-465b-818c-c3b7b782e894","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":118,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"eea10baa-8e48-4a64-bbfb-9fd06ba6c69c","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":118,"box":{"x":68,"y":899,"width":794,"height":11}},{"id":"ccb4f80b-1ffb-4f7f-971d-7a386ffe436b","block_type":"box","text":"II-74","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fcbf31fc-2c8a-42c2-a51b-a0671be6e607","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e034448-da42-4147-9ea9-39605890a6d5","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":119,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"dab57592-b705-40d0-b79f-8a9e35985498","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":119,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"268d4ec1-00fe-49e7-865c-551d1f72f7e1","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":119,"box":{"x":70,"y":75,"width":802,"height":11}},{"id":"857ff204-943f-4baa-9cab-d2e679d59304","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":119,"box":{"x":68,"y":90,"width":812,"height":11}},{"id":"46c2652f-652c-4537-8609-caf20f956600","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":119,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"53e4c15e-f73d-4b8a-a020-eda60d72f5ae","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":119,"box":{"x":69,"y":120,"width":806,"height":12}},{"id":"769202ee-a236-4f88-a36f-df24cda94384","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":119,"box":{"x":69,"y":135,"width":828,"height":11}},{"id":"8e20fe6f-33bc-483b-99fd-4e38d199bbe0","block_type":"box","text":"Standby Commitment Agreements.","page_number":119,"box":{"x":101,"y":158,"width":255,"height":11}},{"id":"fc8b64c0-eed5-49f1-910b-0992e5a4ef2e","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":119,"box":{"x":362,"y":158,"width":511,"height":11}},{"id":"fe998b87-e083-4464-afcd-0b2609a100b4","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":119,"box":{"x":68,"y":173,"width":834,"height":11}},{"id":"597f368e-8f17-4222-8877-66e54be8b56e","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":119,"box":{"x":68,"y":188,"width":834,"height":12}},{"id":"0a79fb10-e513-4045-ba7e-fdbfb02c79bf","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":119,"box":{"x":70,"y":203,"width":802,"height":12}},{"id":"f7056350-1d6a-4efb-8ea9-44a7cdcc4077","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":119,"box":{"x":69,"y":218,"width":793,"height":12}},{"id":"7508bd1f-9202-4d79-8bc4-9f4ae013e3c3","block_type":"box","text":"advantageous to the Fund.","page_number":119,"box":{"x":69,"y":234,"width":188,"height":11}},{"id":"59e6f26b-c770-4a79-9321-f01187aa4cea","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":119,"box":{"x":101,"y":256,"width":800,"height":11}},{"id":"68e18f40-cb87-4775-bfd3-ac8c10609e44","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":119,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"a1f0e4ee-bdbc-43c7-8d3e-10388cf51b49","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":119,"box":{"x":69,"y":286,"width":835,"height":12}},{"id":"18da366a-0790-4a94-a97c-f47bd774513a","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":119,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"d00df3ca-f9bf-4545-ab65-30bb89cc27ef","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":119,"box":{"x":101,"y":324,"width":785,"height":12}},{"id":"9d19d6e4-665b-4f9b-98db-19f5c49c90d2","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":119,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"510ae535-c9bd-4a59-9854-5da936191380","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":119,"box":{"x":68,"y":355,"width":815,"height":11}},{"id":"140599e2-d4be-408f-b0ff-2e82415d3f8f","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":119,"box":{"x":69,"y":370,"width":792,"height":11}},{"id":"818f3d20-3ea5-490d-b0c6-a154e647d573","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":119,"box":{"x":70,"y":385,"width":415,"height":11}},{"id":"3b5e47e5-caa8-4c70-9a09-9c4a69065fba","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":119,"box":{"x":102,"y":408,"width":789,"height":11}},{"id":"7af1b343-508f-4dc2-b54a-a2607bb2d599","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":119,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"d87f51ef-d2e4-40ab-8937-3a96dc4f8e8a","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":119,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"8c7f4998-9dbd-4362-a095-331c355ecc6d","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":119,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"22d72c35-0425-4155-b299-1710ad5eff13","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":119,"box":{"x":68,"y":468,"width":817,"height":11}},{"id":"42b3cf2c-99de-456f-a617-9b13ca18328d","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":119,"box":{"x":69,"y":483,"width":578,"height":11}},{"id":"7d51e82e-5996-4e04-bafd-668ca2f20584","block_type":"box","text":"Stripped Securities.","page_number":119,"box":{"x":101,"y":506,"width":143,"height":11}},{"id":"b6524674-557a-4686-a0a3-b7049684854a","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":119,"box":{"x":251,"y":506,"width":596,"height":11}},{"id":"6cbb8b73-d661-47f8-9612-d6c1b62a018e","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":119,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"c9fe53d0-85c6-4385-9a69-85c81078ddd3","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":119,"box":{"x":70,"y":536,"width":818,"height":11}},{"id":"fd89794a-ca0a-41b2-8328-a20aabb4c07f","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":119,"box":{"x":70,"y":551,"width":813,"height":11}},{"id":"96ed6063-e4f5-4f3b-8e67-e210ffff3a45","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":119,"box":{"x":70,"y":566,"width":777,"height":11}},{"id":"56f21be0-93d6-4723-aefb-28186972384e","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":119,"box":{"x":70,"y":582,"width":802,"height":11}},{"id":"a902ddb0-f4ab-418e-98bc-2705b4c4d882","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":119,"box":{"x":69,"y":596,"width":794,"height":12}},{"id":"f6e9dcf5-82f7-4a0d-aa09-ca097bb8db97","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":119,"box":{"x":70,"y":612,"width":837,"height":11}},{"id":"029d270c-6d14-43e7-bccd-78d5eeac30a5","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":119,"box":{"x":68,"y":627,"width":823,"height":11}},{"id":"9d640c54-5e5d-49ea-8406-4970e7a133bb","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":119,"box":{"x":69,"y":642,"width":494,"height":11}},{"id":"af7d1e25-f287-4777-9194-2902e004cc4f","block_type":"box","text":"Structured Notes.","page_number":119,"box":{"x":101,"y":665,"width":130,"height":8}},{"id":"1733251f-5271-4bd0-9f7b-93548078f12a","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":119,"box":{"x":237,"y":665,"width":650,"height":11}},{"id":"a29f9e67-6a50-4508-9f02-7729582dcbe7","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":119,"box":{"x":69,"y":680,"width":818,"height":11}},{"id":"8eba822b-aea6-4991-9222-ab85d7483bb6","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":119,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"8fe6c671-aa72-4280-8ead-5dbcb67fed87","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":119,"box":{"x":70,"y":710,"width":821,"height":11}},{"id":"555ae02a-a128-434a-a163-495e8a76a60d","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":119,"box":{"x":70,"y":725,"width":839,"height":11}},{"id":"6b5fa993-5e41-4b2e-8775-ac96d1da8b75","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":119,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"99c62b14-d95f-48d1-9d0b-a83d355560ca","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":119,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"ef53aa4d-106a-4f9e-8d94-f02ef9a363a1","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":119,"box":{"x":68,"y":770,"width":673,"height":12}},{"id":"5e7945cc-6455-4bd5-bb9f-27658ca297b0","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":119,"box":{"x":102,"y":793,"width":768,"height":11}},{"id":"10d45faf-3ad0-43ae-abb2-2440eff30ae0","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":119,"box":{"x":70,"y":808,"width":821,"height":11}},{"id":"5e6213b1-1685-4f4a-afa1-8df66af34520","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":119,"box":{"x":69,"y":823,"width":787,"height":12}},{"id":"6d7b0a81-6e83-4744-add9-f45028e00dfc","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":119,"box":{"x":69,"y":838,"width":827,"height":12}},{"id":"c49a8770-3d01-41ac-bcc8-ca8d07ba285c","block_type":"box","text":"the risk of loss.","page_number":119,"box":{"x":68,"y":853,"width":110,"height":9}},{"id":"45405bb7-69a5-472d-af3a-21129dd31a81","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":119,"box":{"x":101,"y":876,"width":759,"height":11}},{"id":"1036775f-1cad-42f3-b940-71d080fa2a18","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":119,"box":{"x":69,"y":891,"width":795,"height":11}},{"id":"7c4f1a7a-6ba0-4dcd-9103-692bdc66189b","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":119,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"a0be5ab3-e2c8-4c11-ab4e-3bb3e3a90dbe","block_type":"box","text":"II-75","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"634b29bd-ed37-41ae-a687-7bfadff54953","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8410d47d-4812-438d-922e-95d00e51bcee","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":120,"box":{"x":70,"y":45,"width":821,"height":11}},{"id":"0edf23b0-dc33-4664-8a61-82b8222c29f9","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":120,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"ddac73de-7de4-480e-ba9f-5852cde9c08b","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":120,"box":{"x":70,"y":75,"width":618,"height":11}},{"id":"827ba58c-a1a5-466c-bbc5-f500b2ab7a22","block_type":"box","text":"Taxability Risk.","page_number":120,"box":{"x":103,"y":98,"width":109,"height":11}},{"id":"0ee34ff4-f40c-4dae-934d-b213efd51974","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":120,"box":{"x":218,"y":98,"width":644,"height":11}},{"id":"3e407d16-69a6-42b5-9aad-d4742d5907ab","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":120,"box":{"x":70,"y":113,"width":817,"height":11}},{"id":"b7821f0d-248c-44d8-a916-11c724400927","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":120,"box":{"x":68,"y":128,"width":827,"height":11}},{"id":"fcf60ad4-a2ef-4464-bef0-813492391426","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":120,"box":{"x":69,"y":143,"width":835,"height":11}},{"id":"02560a84-cbe2-4768-8d0b-c3ac3be9dcf2","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":120,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"2cf1ebff-d963-4597-8ef8-aebec8f248f4","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":120,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"7a602f7a-d4f5-44e6-b704-672ec0f98ad0","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":120,"box":{"x":69,"y":188,"width":816,"height":11}},{"id":"04adebce-b533-4940-a6f3-e84c9d29f1af","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":120,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"65becf06-4142-47e7-ad64-140fc1edd4ba","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":120,"box":{"x":70,"y":218,"width":818,"height":12}},{"id":"256fb553-1e57-420c-8eec-df59c39569d6","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":120,"box":{"x":70,"y":234,"width":771,"height":11}},{"id":"7510b099-b02f-459b-ac05-3262283a55c0","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":120,"box":{"x":70,"y":249,"width":765,"height":11}},{"id":"c7742cb6-e3d6-43f2-9618-7754bd111ae8","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":120,"box":{"x":69,"y":264,"width":834,"height":11}},{"id":"38f15d35-7cae-4024-93d7-6820c882d300","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":120,"box":{"x":68,"y":279,"width":807,"height":11}},{"id":"41d27b42-1421-4e37-ae3f-56d874495968","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":120,"box":{"x":70,"y":294,"width":830,"height":11}},{"id":"9247899f-ddc2-4125-afa3-b5e135835ecf","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":120,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"14919280-b874-4918-89a9-0ab8756aadce","block_type":"box","text":"the value of an investment in the Fund.","page_number":120,"box":{"x":68,"y":324,"width":278,"height":9}},{"id":"720b01e5-c49c-4e39-9502-42b00d5a0190","block_type":"box","text":"Temporary Defensive Measures.","page_number":120,"box":{"x":103,"y":347,"width":230,"height":11}},{"id":"e4d492f6-987c-4c98-9485-a03d14c93962","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":120,"box":{"x":339,"y":347,"width":542,"height":11}},{"id":"c63dabd8-767f-46a2-95c1-aa87af5aff0f","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":120,"box":{"x":69,"y":362,"width":811,"height":11}},{"id":"9f547476-a90e-4e0c-85a4-3871d06cfdc4","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":120,"box":{"x":68,"y":377,"width":813,"height":12}},{"id":"bc688678-408f-4169-b34a-90bb6e2d418a","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":120,"box":{"x":69,"y":393,"width":833,"height":11}},{"id":"121b7ff2-1db9-478e-b025-6f500777d530","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":120,"box":{"x":70,"y":408,"width":813,"height":11}},{"id":"158a30a8-69b1-40a6-b2d0-b00b2d1deed1","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":120,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"3b20f456-e688-4076-8827-49b7fba91918","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":120,"box":{"x":68,"y":438,"width":806,"height":11}},{"id":"9aab375e-a0f6-48a2-81c2-f35b95f10c6e","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":120,"box":{"x":69,"y":453,"width":808,"height":11}},{"id":"f3c505fb-cce5-4f79-ab06-b97b9dcb90e5","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":120,"box":{"x":68,"y":468,"width":820,"height":11}},{"id":"c1b63481-0615-4028-9cd4-96b56bfc0a98","block_type":"box","text":"its investment objective.","page_number":120,"box":{"x":70,"y":483,"width":171,"height":11}},{"id":"3df5f9c7-78c0-4753-a69f-1ea1da13a13a","block_type":"box","text":"U.S. Government Obligations.","page_number":120,"box":{"x":102,"y":506,"width":213,"height":11}},{"id":"ac6ca691-64ae-48a5-aaa3-ebd5e944a14c","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":120,"box":{"x":321,"y":506,"width":566,"height":11}},{"id":"e6eafaf7-8fe8-4cf2-8727-321f9c5e2ce2","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":120,"box":{"x":69,"y":521,"width":810,"height":11}},{"id":"03d6c101-df73-44b1-8bb4-f80f50f9dd72","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":120,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"13df9353-2863-41e0-ab20-ca688a898e03","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":120,"box":{"x":68,"y":551,"width":779,"height":11}},{"id":"bf070090-3538-49ff-887a-a956044b973e","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":120,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"481900f8-22e4-428f-962d-3dd2a7fb3ef8","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":120,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"bc51cd00-bef0-4478-b7e0-461e82249cee","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":120,"box":{"x":69,"y":596,"width":809,"height":12}},{"id":"928680a1-9ed9-461d-a989-e56f54b18d12","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":120,"box":{"x":69,"y":612,"width":805,"height":11}},{"id":"d3e4827e-7bb8-46c1-911f-09a77a458a01","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":120,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"855cecf4-9fb4-416b-a0bb-3ae4b001393d","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":120,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"c016bec7-ef50-492c-b151-a095a9187b03","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":120,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"0f46ed3a-9d96-4d03-9f3e-65f3afae2404","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":120,"box":{"x":69,"y":672,"width":716,"height":11}},{"id":"932faee0-cc4c-40ad-98fd-c9104663a6a5","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":120,"box":{"x":102,"y":695,"width":800,"height":11}},{"id":"91a77103-4e95-46fa-acf4-755adfab5958","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":120,"box":{"x":68,"y":710,"width":785,"height":11}},{"id":"61e8d788-2802-4b71-9391-663fbaab2bd4","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":120,"box":{"x":68,"y":725,"width":813,"height":11}},{"id":"25fbc3dc-2ef9-4888-bca8-71905e6da567","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":120,"box":{"x":70,"y":740,"width":794,"height":11}},{"id":"8a36a778-b3f0-4b6f-9a49-3d9167429123","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":120,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"6fba8caf-b34d-4120-98cd-630af573ed1b","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":120,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"4d92695d-2da6-4677-8b53-7dd9a8d7a446","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":120,"box":{"x":70,"y":786,"width":777,"height":11}},{"id":"a946b340-1df0-40a8-887a-a688fc444c18","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":120,"box":{"x":70,"y":801,"width":749,"height":11}},{"id":"7de3e1f7-4e12-4f98-9264-d509a9948459","block_type":"box","text":"U.S. Treasury Obligations.","page_number":120,"box":{"x":103,"y":823,"width":183,"height":12}},{"id":"04b96553-f253-4913-8502-285bf71323c4","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":120,"box":{"x":292,"y":823,"width":593,"height":12}},{"id":"3524bf6b-eae2-432e-9a85-e05fae21277b","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":120,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"d0cfa12e-2ce3-4526-a83a-e002917b707f","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":120,"box":{"x":69,"y":853,"width":827,"height":12}},{"id":"c15faa6a-7a7a-471a-ba93-79880b143cd8","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":120,"box":{"x":68,"y":869,"width":823,"height":11}},{"id":"a742acff-9d4b-4d6f-a73f-697878a0928b","block_type":"box","text":"do so.","page_number":120,"box":{"x":69,"y":884,"width":42,"height":9}},{"id":"3a5bbd8a-9ce1-498b-9c4f-cbb57dd75953","block_type":"box","text":"II-76","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d1e0973e-e926-46ee-8b6e-c115e040981c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5f21366-79d4-48fe-9eb8-7594804a0250","block_type":"box","text":"U.S. Treasury Rolls","page_number":121,"box":{"x":102,"y":45,"width":139,"height":11}},{"id":"abf144f2-8e75-4c1d-86eb-625da5279e55","block_type":"box","text":".","page_number":121,"box":{"x":241,"y":52,"width":3,"height":2}},{"id":"ff26a8c7-d6e4-4b75-932a-0b3ed09f2719","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":121,"box":{"x":250,"y":45,"width":656,"height":11}},{"id":"091bc3d6-8165-426d-a87d-2280be9ac647","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":121,"box":{"x":69,"y":60,"width":804,"height":11}},{"id":"d36c07da-349a-4484-8930-175c2c10ef3c","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":121,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"47231927-76a3-440e-be5d-836f5a959631","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":121,"box":{"x":69,"y":90,"width":840,"height":11}},{"id":"b2a86291-035d-408f-8d2d-02ce06a1a22f","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":121,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"269dbe49-08ec-4d73-bee5-70a7dc6d447f","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":121,"box":{"x":69,"y":120,"width":775,"height":12}},{"id":"53ad9248-1d6c-4fb2-9b1f-b781bdd09eb6","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":121,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"8a492c25-97ca-4b41-9144-f80672733d4c","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":121,"box":{"x":68,"y":150,"width":657,"height":12}},{"id":"f3a8d137-5fd4-44f5-b0ac-2fae305afc55","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":121,"box":{"x":101,"y":173,"width":756,"height":11}},{"id":"0be17f4f-5df0-450a-ad50-55e89b39ccd1","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":121,"box":{"x":70,"y":188,"width":800,"height":11}},{"id":"108ccb66-db31-4435-ba97-c36f8d6f3312","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":121,"box":{"x":70,"y":203,"width":617,"height":12}},{"id":"d3c42bff-638c-4fa8-9c36-32a7cf4f42b3","block_type":"box","text":"Utility Industries.","page_number":121,"box":{"x":102,"y":226,"width":124,"height":11}},{"id":"191611f8-df91-4bc0-b3a5-2c984ceb86bf","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":121,"box":{"x":233,"y":226,"width":674,"height":11}},{"id":"48d00594-24f2-4565-9ff3-c84c0de15fc3","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":121,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"f658fe48-00fb-47a9-be44-44d8572e4a6a","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":121,"box":{"x":69,"y":256,"width":812,"height":12}},{"id":"79098bc5-7d85-41e9-a989-3f664090f0c2","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":121,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"769ea0e1-3630-407b-b0fe-f6c311473d33","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":121,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"f962ae63-2308-40fe-b69b-ddae31421e47","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":121,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"2a2d11f9-6d55-4eba-a949-f7e585ffaddf","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":121,"box":{"x":69,"y":317,"width":795,"height":11}},{"id":"b419bd31-7f5b-4003-93ef-d8a9ecfdffbe","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":121,"box":{"x":69,"y":332,"width":774,"height":11}},{"id":"b99f8daf-551d-4f99-b477-70db7e46186c","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":121,"box":{"x":69,"y":347,"width":817,"height":11}},{"id":"f06717d7-9d22-4d85-9ab1-bb2b9f0b6ea0","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":121,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"d28a0f65-21b9-405b-a329-ef38d3867c01","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":121,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"ae7891de-e82f-4924-b7e2-cf6e1ec8b444","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":121,"box":{"x":69,"y":392,"width":761,"height":12}},{"id":"f921d5c4-08ca-484f-9af2-baf75f31a4ef","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":121,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"1b2781a6-324e-4a75-8259-629d4cf251c1","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":121,"box":{"x":69,"y":423,"width":777,"height":11}},{"id":"2f9c8b6a-49d6-4742-9234-11dc5f2d1209","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":121,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"40f20938-44b2-4586-9a68-61244c8186ef","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":121,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"da451a98-eb23-4aed-a6f2-2e2982590b16","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":121,"box":{"x":68,"y":468,"width":778,"height":11}},{"id":"8f602af0-3487-4be6-b874-67ab9e5d0111","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":121,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"abad6e95-18fb-48c4-801a-2917b6919f72","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":121,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"1d7a3e93-d5b4-460b-8309-8be8fca0e933","block_type":"box","text":"utility.","page_number":121,"box":{"x":69,"y":514,"width":39,"height":10}},{"id":"0e2631dd-b5d0-401f-9ecc-e3003dfbe021","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":121,"box":{"x":102,"y":536,"width":744,"height":11}},{"id":"93e7423e-9cd5-4340-bfc8-12b6749458af","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":121,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"da1d28e6-41d8-460b-893e-86e24fa3bddf","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":121,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"1396cfcd-94f9-4ede-b7f7-fba7a9452f25","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":121,"box":{"x":70,"y":581,"width":464,"height":11}},{"id":"b9e10817-ad86-4a1e-a72e-c65ef6fef5b4","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":121,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"3b97c78e-728c-4a77-9c66-b71768b5a333","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":121,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"f4638113-675f-48e1-a998-dd555c8fc62b","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":121,"box":{"x":69,"y":634,"width":811,"height":11}},{"id":"0879b244-9feb-4970-9f0c-632b934e73ca","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":121,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"88954ae5-53dd-4beb-9179-a8048a51c7d9","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":121,"box":{"x":68,"y":664,"width":781,"height":12}},{"id":"6cab8c07-5677-43e9-a3cc-3cc680df95ce","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":121,"box":{"x":69,"y":680,"width":826,"height":11}},{"id":"321c7d1b-ee19-4b65-a72f-762dc0b8d3da","block_type":"box","text":"continue in the future.","page_number":121,"box":{"x":69,"y":695,"width":156,"height":9}},{"id":"55303053-b920-42ce-b422-24fefdcc4a1d","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":121,"box":{"x":101,"y":717,"width":763,"height":12}},{"id":"01b3c924-4e66-460e-955c-b9b995c2a351","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":121,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"b1b3d7b9-b896-42d3-82df-31af0b3229a9","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":121,"box":{"x":70,"y":748,"width":834,"height":11}},{"id":"0f2c3ca8-8686-4487-9ee6-a96a753fe5d4","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":121,"box":{"x":69,"y":763,"width":784,"height":11}},{"id":"bdf20ccb-ca0e-4e2a-830e-aab31144ca9f","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":121,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"e0be066c-7699-4127-ab2e-c0e86b59e054","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":121,"box":{"x":68,"y":793,"width":809,"height":11}},{"id":"18a9f4e9-da7c-4e8f-a89d-9b76d5d0a287","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":121,"box":{"x":69,"y":808,"width":834,"height":11}},{"id":"c12961bf-6b61-4c03-9054-6e33983404f9","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":121,"box":{"x":69,"y":823,"width":825,"height":12}},{"id":"a870c98f-b5be-4aa1-848e-cb43e7a35014","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":121,"box":{"x":68,"y":838,"width":840,"height":11}},{"id":"38bc3749-7d7d-4618-bb0a-6b536d87fdf6","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":121,"box":{"x":69,"y":853,"width":796,"height":12}},{"id":"f5eaab5d-64d5-4a36-834b-4e87a9472461","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":121,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"28c2c32d-d87a-4001-b007-f91cecc19bdd","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":121,"box":{"x":68,"y":884,"width":831,"height":11}},{"id":"fa745c9e-ff6f-4a0e-888e-905f55b91d29","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":121,"box":{"x":69,"y":899,"width":812,"height":11}},{"id":"ad80448e-643b-4cbe-af38-72946b583b01","block_type":"box","text":"II-77","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"898fecde-8f08-4f8a-ad83-0fc8ae3f83e1","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"311a98a1-a2e2-42cc-a35e-b262e3344ee1","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":122,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"e7fd1096-9e75-4059-b0b9-82939a233656","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":122,"box":{"x":68,"y":60,"width":831,"height":11}},{"id":"9d9ac29e-621a-4bb0-8ee1-8deaa161d185","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":122,"box":{"x":102,"y":83,"width":720,"height":11}},{"id":"44b2b670-406d-431e-b061-86670a59b637","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":122,"box":{"x":69,"y":98,"width":838,"height":11}},{"id":"985fd765-810d-45c8-8218-cea841c2c00e","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":122,"box":{"x":68,"y":113,"width":762,"height":11}},{"id":"8b915ce8-629a-45e7-a65f-a1bd410fae3b","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":122,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"5cef5aec-9b81-460f-9aa1-0e234933e28d","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":122,"box":{"x":68,"y":143,"width":801,"height":11}},{"id":"12c73d54-8284-476a-a2fe-bd95883b8ef4","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":122,"box":{"x":69,"y":158,"width":828,"height":11}},{"id":"40873082-dd0a-4547-8da2-1dc59884d1e2","block_type":"box","text":"ways different from regulation in the United States.","page_number":122,"box":{"x":68,"y":173,"width":365,"height":11}},{"id":"7ad68bed-afd7-4831-aae1-32f4068ce886","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":122,"box":{"x":101,"y":196,"width":745,"height":11}},{"id":"0a7f3465-061b-454d-97b1-95359a05e5e2","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":122,"box":{"x":68,"y":211,"width":790,"height":11}},{"id":"94c55199-73fc-4b38-bb89-8f51865df62d","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":122,"box":{"x":69,"y":226,"width":833,"height":11}},{"id":"e4c5d200-966b-4b95-bdd6-35f720b770cd","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":122,"box":{"x":69,"y":241,"width":810,"height":11}},{"id":"71bb0862-ebea-4ee2-8201-e278d268b520","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":122,"box":{"x":69,"y":256,"width":831,"height":12}},{"id":"389e55db-4c0a-44ee-a6e5-686b3b120aef","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":122,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"c84bd6ba-66b3-4860-8f10-68c7bd166f8c","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":122,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"3d97acbc-79f1-4563-866e-52582f8f2783","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":122,"box":{"x":69,"y":302,"width":786,"height":11}},{"id":"97dff305-d6ae-4b6a-9de2-adbab22c8666","block_type":"box","text":"increase.","page_number":122,"box":{"x":70,"y":317,"width":63,"height":9}},{"id":"ae8518e5-8ce9-4412-984a-3791cf48bfa3","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":122,"box":{"x":101,"y":339,"width":793,"height":12}},{"id":"64c47639-9027-42c5-8420-78e0558ee133","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":122,"box":{"x":70,"y":355,"width":821,"height":11}},{"id":"d07bea54-7e2a-4edd-8c46-80e9618f2153","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":122,"box":{"x":69,"y":370,"width":619,"height":11}},{"id":"5a6b1f73-2826-4253-bdd1-60c11a98f003","block_type":"box","text":"Electric.","page_number":122,"box":{"x":102,"y":393,"width":54,"height":8}},{"id":"086054d3-a1d5-433e-b680-afcc302f31df","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":122,"box":{"x":163,"y":392,"width":684,"height":12}},{"id":"f9e17047-0d49-4464-8a71-006555becc0e","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":122,"box":{"x":68,"y":407,"width":793,"height":12}},{"id":"02539bd6-d9e2-4cfd-8f02-e889a2772c31","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":122,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"ab108935-bff3-4869-9928-ac6e1a66cd62","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":122,"box":{"x":69,"y":438,"width":833,"height":11}},{"id":"16642086-a3ba-4ece-a047-43b9bb908d32","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":122,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"24c645ef-a527-4e64-b24b-5e6b490834e7","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":122,"box":{"x":69,"y":468,"width":823,"height":11}},{"id":"459d2dd1-6557-4604-866c-cdcaf15cc6cc","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":122,"box":{"x":68,"y":483,"width":803,"height":11}},{"id":"1ea0abba-13f0-40a2-a624-8d9c488cc9ca","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":122,"box":{"x":70,"y":498,"width":778,"height":11}},{"id":"fc0f9cd4-d2db-4503-9032-d831b74b0b7d","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":122,"box":{"x":70,"y":513,"width":836,"height":12}},{"id":"a2172b08-422e-4087-827f-188edc49796d","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":122,"box":{"x":69,"y":528,"width":793,"height":12}},{"id":"14c83546-67de-47ed-972c-0363e87aa2cc","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":122,"box":{"x":69,"y":543,"width":786,"height":12}},{"id":"95b94f00-9848-494b-93b1-71bea5099b4f","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":122,"box":{"x":69,"y":559,"width":819,"height":11}},{"id":"84030331-1b62-4b46-b634-5326584c1d7f","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":122,"box":{"x":69,"y":574,"width":775,"height":11}},{"id":"40f5d68c-70a5-4648-8a24-f3de45445fe3","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":122,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"18324190-3e75-42aa-8a9a-7219aba001a0","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":122,"box":{"x":70,"y":604,"width":826,"height":11}},{"id":"a7441145-337d-4a50-8364-8ee0f7f3cafa","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":122,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"c7cd4c4d-fd4d-46c7-bb11-188765f34019","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":122,"box":{"x":69,"y":634,"width":836,"height":11}},{"id":"9e5858f2-b924-43d8-8c75-459ac0856840","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":122,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"8a9264fd-81de-4948-ab7f-df1a7e3c768b","block_type":"box","text":"and for decommissioning such plants.","page_number":122,"box":{"x":69,"y":664,"width":270,"height":12}},{"id":"aecdb0f9-e22b-4557-b223-f4e8730bb94b","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":122,"box":{"x":101,"y":687,"width":776,"height":11}},{"id":"8824bbda-bca0-44d7-b342-6312ecc85122","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":122,"box":{"x":70,"y":702,"width":802,"height":12}},{"id":"a03866ca-43b5-4528-8aa9-8c5c606707ca","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":122,"box":{"x":69,"y":717,"width":791,"height":12}},{"id":"c39f5e72-0510-4602-8bb6-60d91308eba9","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":122,"box":{"x":69,"y":732,"width":839,"height":12}},{"id":"25d0e182-17d6-4b95-853c-110e428b8419","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":122,"box":{"x":70,"y":748,"width":838,"height":11}},{"id":"dd6a71c0-026e-42f3-afcc-bc18a1fcf66d","block_type":"box","text":"greater predictability of cash flow.","page_number":122,"box":{"x":68,"y":763,"width":239,"height":11}},{"id":"78ec0136-d2ad-44ea-80b5-db5a83584dc9","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":122,"box":{"x":101,"y":785,"width":801,"height":12}},{"id":"df176a34-4d20-478b-8cc1-03ad08bda110","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":122,"box":{"x":68,"y":801,"width":821,"height":11}},{"id":"a4181efa-5b19-42fa-a9e4-e650f431f19b","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":122,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"1330373d-bc3e-4b21-94e9-c447974169e2","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":122,"box":{"x":68,"y":831,"width":815,"height":11}},{"id":"823bc3a5-2f2b-4740-9cb2-87c94f9bb5e4","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":122,"box":{"x":68,"y":846,"width":803,"height":11}},{"id":"688a0978-2157-4c12-9850-e80fb06213b7","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":122,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"f8f0842d-6a7c-4f22-b6b1-1d45106dd830","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":122,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"8ac3e02f-6fc8-476e-8bc9-425a23e9e9c4","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":122,"box":{"x":68,"y":891,"width":835,"height":12}},{"id":"b70634b8-9e34-43fa-80a0-99dbfe2db67a","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":122,"box":{"x":69,"y":906,"width":700,"height":12}},{"id":"6d45660d-d8d8-4614-92bc-962f73962fb2","block_type":"box","text":"II-78","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d67ac067-716a-420e-9982-909752391ff8","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cde4598-3ce5-47ba-a277-43ff3cb89516","block_type":"box","text":"Telecommunications.","page_number":123,"box":{"x":103,"y":45,"width":147,"height":9}},{"id":"fdb4e196-235c-4401-ba4d-6a47ba7cba44","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":123,"box":{"x":256,"y":45,"width":652,"height":11}},{"id":"953eead5-ed2d-45e7-a52f-f21587d1693f","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":123,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"791c1d7c-b0f1-4869-b7f7-a6b421b5c5ae","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":123,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"ad74316e-bb01-4383-a790-2d5c3f8d48d4","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":123,"box":{"x":69,"y":90,"width":786,"height":11}},{"id":"bdc63868-75d9-42f5-b04b-1a347758c30f","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":123,"box":{"x":69,"y":105,"width":784,"height":11}},{"id":"75f0f610-d406-4402-803a-e64f54135342","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":123,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"d0dd9489-63bd-4254-bd0e-3a4406b84627","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":123,"box":{"x":69,"y":135,"width":790,"height":12}},{"id":"a06ba592-b82c-45be-8852-5a4dee2696fa","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":123,"box":{"x":70,"y":150,"width":788,"height":12}},{"id":"d906afb3-10e4-4e35-9da6-7622dbd4666d","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":123,"box":{"x":68,"y":166,"width":825,"height":11}},{"id":"5e4a3042-0222-471d-aa1d-62e6bc596345","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":123,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"1f56cb49-7f64-431b-b864-72e60b9f3fd9","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":123,"box":{"x":69,"y":196,"width":821,"height":11}},{"id":"c39208b3-0f77-4913-a734-d7fc110b542d","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":123,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"d1d6a370-4a45-4e8f-9b11-147ec8fa424c","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":123,"box":{"x":70,"y":226,"width":821,"height":11}},{"id":"d08b3a2a-90aa-48f4-b2c7-14383f346727","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":123,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"a068e29d-6e81-41a4-b27f-56cb89875ad8","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":123,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"d52af69a-8a85-4c81-aabc-d2320141a8aa","block_type":"box","text":"residential, corporate and governmental customers.","page_number":123,"box":{"x":69,"y":272,"width":367,"height":11}},{"id":"38e60193-d68e-4e1f-8848-399eb994651d","block_type":"box","text":"Gas.","page_number":123,"box":{"x":102,"y":294,"width":31,"height":9}},{"id":"e616a9cb-c17f-4d45-be1a-84d294fee3c2","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":123,"box":{"x":139,"y":294,"width":740,"height":11}},{"id":"635551d0-68e5-4f08-9094-3d0c12988cc5","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":123,"box":{"x":70,"y":309,"width":834,"height":11}},{"id":"db09bd6f-20e2-45eb-8cb3-66aff27fbdfb","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":123,"box":{"x":70,"y":324,"width":756,"height":12}},{"id":"d474b89a-1d68-403f-9dd1-071ec8fc5ea6","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":123,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"8c852800-d327-4b4f-bd7b-a49834bbcac2","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":123,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"f494c64e-44f0-48a5-a8c3-1dc297052d7c","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":123,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"1b02fb80-c794-4872-ae42-6f987edcb853","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":123,"box":{"x":69,"y":385,"width":782,"height":11}},{"id":"05287e18-68e8-4e5c-afbf-98587603f0d2","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":123,"box":{"x":70,"y":400,"width":829,"height":11}},{"id":"b824a909-36f4-4c1f-ba83-5f165f9490a8","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":123,"box":{"x":70,"y":415,"width":691,"height":11}},{"id":"d349b2eb-199e-47fb-8203-79c50cd944ea","block_type":"box","text":"Water.","page_number":123,"box":{"x":103,"y":438,"width":42,"height":9}},{"id":"646b9ad5-8338-4d88-921b-03a37e457af7","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":123,"box":{"x":151,"y":438,"width":754,"height":11}},{"id":"c60d145c-6cd5-4827-9278-fe33f52353b5","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":123,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"1e210954-eec2-4b08-b17a-9cd6e710a822","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":123,"box":{"x":69,"y":468,"width":806,"height":11}},{"id":"2c4a30bf-71d6-4ec9-bd29-3639c6a84e48","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":123,"box":{"x":69,"y":483,"width":814,"height":11}},{"id":"6325233b-b19c-4858-8df6-c020cb515b81","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":123,"box":{"x":69,"y":498,"width":808,"height":11}},{"id":"e73a0d69-f5dc-479d-8a08-054690617e8b","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":123,"box":{"x":69,"y":513,"width":832,"height":12}},{"id":"103ece8a-e948-4e9b-8d35-71c5e47a7ddf","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":123,"box":{"x":69,"y":528,"width":662,"height":12}},{"id":"f3deb942-664a-45ac-bb4e-be3f0ad07ce7","block_type":"box","text":"Utility Industries Generally.","page_number":123,"box":{"x":103,"y":551,"width":186,"height":11}},{"id":"10f20a44-d062-4e8c-a18f-b464aa23a297","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":123,"box":{"x":296,"y":551,"width":584,"height":11}},{"id":"24ebbb05-2f24-4dc1-b6f9-adb55f1274f6","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":123,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"77741c00-a29a-407c-ad19-0f7c44bc09ed","block_type":"box","text":"not develop in the future.","page_number":123,"box":{"x":69,"y":581,"width":178,"height":11}},{"id":"f5deebc1-9798-45e1-abc0-06b2ba90fff2","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":123,"box":{"x":103,"y":604,"width":585,"height":11}},{"id":"0cbb704c-28f4-4952-a59b-e3a4792d3636","block_type":"box","text":"A Fund may purchase or sell","page_number":123,"box":{"x":694,"y":604,"width":200,"height":11}},{"id":"705b3276-e82e-4fa6-a83a-1d755cd48bc9","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":123,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"540aa0bc-7522-4628-9215-93eac91aa1e3","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":123,"box":{"x":69,"y":634,"width":777,"height":12}},{"id":"b1a95128-2d6c-472b-9751-04969a724b0d","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":123,"box":{"x":68,"y":649,"width":820,"height":12}},{"id":"1772da38-35b3-49b5-aa63-a2f4a692d447","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":123,"box":{"x":68,"y":664,"width":807,"height":12}},{"id":"12440af0-91e3-4050-ad39-6edef6dfce36","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":123,"box":{"x":70,"y":680,"width":430,"height":11}},{"id":"8a2ca393-c5aa-4862-8bff-c5f70bb56d73","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":123,"box":{"x":102,"y":702,"width":750,"height":11}},{"id":"dbdc8a52-899d-4de2-9469-d352056e482e","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":123,"box":{"x":70,"y":717,"width":823,"height":12}},{"id":"911306c1-0c6b-4c3d-aff9-99bb3c44e2e7","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":123,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"2a5e4c9d-2f81-41a9-8b50-85e3952d1d8c","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":123,"box":{"x":70,"y":748,"width":755,"height":11}},{"id":"957e2b7c-fea3-4e4d-9bfc-f88d7a6c2c17","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":123,"box":{"x":69,"y":763,"width":799,"height":11}},{"id":"9e35dbf7-15d7-4d4e-a6ac-a9fc2d5c90d1","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":123,"box":{"x":69,"y":778,"width":614,"height":11}},{"id":"88bbf610-8322-4349-8cae-5cd9b46ee079","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":123,"box":{"x":101,"y":801,"width":780,"height":11}},{"id":"29b5d1c9-323f-46c2-a7cf-bfa65211ecae","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":123,"box":{"x":70,"y":816,"width":823,"height":11}},{"id":"7119f3b4-0442-4086-a0a0-e1ade061ba7a","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":123,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"f5d217c5-fe2f-4fc8-a7e2-05de966a6091","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":123,"box":{"x":68,"y":846,"width":839,"height":11}},{"id":"6b000f66-18ec-498d-9760-9bf2c61aed7b","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":123,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"afb763ad-f086-4eb7-a563-5a98f6bb0957","block_type":"box","text":"II-79","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"059cb344-c4d8-4be8-899d-c6b938549f94","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"13a1e409-2ead-4583-9101-5ec266bc6c6c","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":124,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"05010c87-b69b-494e-95ca-c82ec5436279","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":124,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"145ddbd7-ff01-4a81-9a00-9b27f7d440c4","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":124,"box":{"x":69,"y":75,"width":799,"height":11}},{"id":"0613ef1b-1150-4609-ae93-c01737071f39","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":124,"box":{"x":101,"y":98,"width":784,"height":11}},{"id":"906b7f94-45d0-4635-aa28-be1f69fdfb97","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":124,"box":{"x":69,"y":113,"width":772,"height":11}},{"id":"1df3221e-655c-43a7-9109-1476105277df","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":124,"box":{"x":69,"y":128,"width":434,"height":11}},{"id":"7b4c63f5-b8b9-4f8b-8439-8fdf20c65e5c","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":124,"box":{"x":101,"y":150,"width":745,"height":12}},{"id":"ba33556f-e2bd-45ff-a676-c90d61cee125","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":124,"box":{"x":68,"y":166,"width":831,"height":11}},{"id":"e307c06d-5133-4a73-a11b-aa6a41e01634","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":124,"box":{"x":69,"y":181,"width":823,"height":11}},{"id":"f98d12f7-67dc-4bf3-a3c4-108c41a50a4d","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":124,"box":{"x":68,"y":196,"width":514,"height":11}},{"id":"b4eeab82-af01-4969-bb9f-93b2f611addd","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":124,"box":{"x":102,"y":218,"width":759,"height":12}},{"id":"6442d236-44b3-4aef-af0a-f4f923913447","block_type":"box","text":"securities (","page_number":124,"box":{"x":69,"y":234,"width":78,"height":11}},{"id":"1d7fc60e-9a1e-4a62-839d-59e10537f9b4","block_type":"box","text":"e.g.","page_number":124,"box":{"x":148,"y":235,"width":25,"height":10}},{"id":"45c9e9f5-b0eb-4b1c-abc0-1734e2e27912","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":124,"box":{"x":176,"y":234,"width":686,"height":11}},{"id":"0ddb4b40-25af-4ba5-aae1-7450a1193d07","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":124,"box":{"x":69,"y":249,"width":813,"height":11}},{"id":"0fbb0b68-2359-4a72-815d-1d9fd335e0e0","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":124,"box":{"x":70,"y":264,"width":822,"height":11}},{"id":"cd70096c-adc3-47e3-9761-4f1b26487906","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":124,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"4a7d61b5-5cf8-4452-96ad-f64df06248ee","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":124,"box":{"x":69,"y":294,"width":826,"height":11}},{"id":"fc952690-a810-46bb-abca-fe7e1a7f9ae8","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":124,"box":{"x":70,"y":309,"width":816,"height":11}},{"id":"33d825c6-33c4-49ba-bdfb-a5a12bcd0b09","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":124,"box":{"x":70,"y":324,"width":349,"height":11}},{"id":"b76537f7-6835-4bfe-afb5-edd3ddabd342","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":124,"box":{"x":102,"y":347,"width":800,"height":11}},{"id":"cc22a2d1-121d-41c3-b8e5-bec2b8d2f4db","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":124,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"96652337-d9b3-41f8-a1a7-86a4cc81e6d3","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":124,"box":{"x":69,"y":377,"width":814,"height":12}},{"id":"200909d1-f57a-4de5-a1e0-1a8c59f342ac","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":124,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"d500408d-17b3-4d9a-928e-6e5e7ee1af89","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":124,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"fc7f3374-90ba-4264-a426-1399ff7bcb37","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":124,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"f29c3250-f979-4383-ad67-4c5fce32538f","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":124,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"72f7132c-4de9-41f0-8419-6c241bd337f2","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":124,"box":{"x":68,"y":453,"width":573,"height":11}},{"id":"8f602080-e301-4b56-8167-fe6798f1c0f9","block_type":"box","text":"Yields and Ratings.","page_number":124,"box":{"x":103,"y":476,"width":139,"height":11}},{"id":"87c66d99-b0bc-454f-a255-f957c2b9249c","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":124,"box":{"x":247,"y":475,"width":628,"height":12}},{"id":"833b574e-3990-4b7f-b2f1-7a946fb6d502","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":124,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"2bebe169-9dec-48a2-aa32-d26b58df3c53","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":124,"box":{"x":69,"y":506,"width":799,"height":11}},{"id":"4e25f9a7-7405-466d-862b-7eb3cb28a085","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":124,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"78323915-8a7f-424d-9323-c3d1fd5a2733","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":124,"box":{"x":68,"y":536,"width":792,"height":11}},{"id":"3f2c0b89-0d5a-4b21-858c-3b18c98b35c6","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":124,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"3930dd39-1017-4611-8e5c-89e5629328aa","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":124,"box":{"x":69,"y":566,"width":786,"height":11}},{"id":"dd2e3f5d-64b3-48a9-ae94-2bb8e4ab838d","block_type":"box","text":"continue to hold the security.","page_number":124,"box":{"x":69,"y":582,"width":204,"height":10}},{"id":"34c23b1a-1ec6-406b-8567-729c11cd0256","block_type":"box","text":"Zero Coupon Securities.","page_number":124,"box":{"x":102,"y":604,"width":175,"height":11}},{"id":"6674d6a6-2473-4fd8-85d2-8dc532beb14a","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":124,"box":{"x":283,"y":604,"width":601,"height":11}},{"id":"13f3d9c7-b1ec-4d6b-a391-b91b1d53bb5e","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":124,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"0e4ec84d-c471-44a5-8441-dc91525c6091","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":124,"box":{"x":69,"y":634,"width":822,"height":12}},{"id":"a0a5721a-9adb-4a11-87fd-a27d00cc9dea","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":124,"box":{"x":68,"y":649,"width":814,"height":12}},{"id":"042e1c30-956d-4719-81b5-579413a50da9","block_type":"box","text":"security.","page_number":124,"box":{"x":69,"y":665,"width":57,"height":11}},{"id":"eafb39b0-9959-4c6c-a664-252c54c09229","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":124,"box":{"x":101,"y":687,"width":749,"height":11}},{"id":"7706ef57-f252-4a08-8004-734a24a63abb","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":124,"box":{"x":69,"y":702,"width":835,"height":12}},{"id":"7e36160d-2fc3-4847-9184-894a1d03ea23","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":124,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"76d20270-846f-4a5d-a127-11bcf537d227","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":124,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"329a5636-735b-425d-9c2b-bd96cee8997d","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":124,"box":{"x":69,"y":748,"width":804,"height":11}},{"id":"b3e8650e-1741-4835-bef2-95a209214f98","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":124,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"5bbadc2e-980f-4c2b-9cef-c67b12dee710","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":124,"box":{"x":68,"y":778,"width":805,"height":11}},{"id":"17adbd93-4a0c-4b86-a4bf-311aa9cd4f0c","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":124,"box":{"x":70,"y":793,"width":837,"height":11}},{"id":"86dc81cf-3d4c-4d32-a887-53ccffacdf98","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":124,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"0a9ee248-0af2-42ad-84ff-06abfb581cf9","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":124,"box":{"x":69,"y":823,"width":800,"height":12}},{"id":"5462ef6c-e03e-42fd-9d9f-8108b1a52d4d","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":124,"box":{"x":69,"y":838,"width":400,"height":12}},{"id":"3fb725ed-28b2-4b39-8826-eae87e98d027","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":124,"box":{"x":101,"y":861,"width":775,"height":11}},{"id":"ca210d6f-8959-4bf0-85ad-4b40491998fd","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":124,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"493ea066-68da-4e1b-8df1-fc56c84b9438","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":124,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"95d779ce-bd7f-4a57-b725-15c18173d5ca","block_type":"box","text":"intervals.","page_number":124,"box":{"x":70,"y":907,"width":64,"height":8}},{"id":"1e2f0585-7cdb-4b31-9cac-8d97de0d7779","block_type":"box","text":"II-80","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d3b2f409-63c0-4ac4-a406-a81c8df33789","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf44ade3-4fd2-4cf9-abec-d335b0fd106e","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":125,"box":{"x":102,"y":45,"width":749,"height":11}},{"id":"7f1d8c30-c449-41ab-bccb-6eb3804b5aba","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":125,"box":{"x":69,"y":60,"width":784,"height":11}},{"id":"8ff9c375-91d7-4071-b972-694b0c552927","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":125,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"2a9386b2-5b72-4eca-bc12-444237109ec7","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":125,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"5b903ca5-4070-4107-a027-b3b9d9f2ce39","block_type":"box","text":"exposure to zero coupon securities.","page_number":125,"box":{"x":69,"y":105,"width":253,"height":11}},{"id":"155df34c-cb7c-486b-8ef2-a0d4f80a686e","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":125,"box":{"x":102,"y":128,"width":740,"height":11}},{"id":"80c6cf83-012b-47c7-9ab5-955c34cb98ba","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":125,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"45d5ad17-1c58-40dd-bffd-304890ff9301","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":125,"box":{"x":70,"y":158,"width":829,"height":11}},{"id":"b04235bb-50c1-4fb6-8e93-8b8b01ebc53f","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":125,"box":{"x":69,"y":173,"width":741,"height":11}},{"id":"da841338-938d-4ff8-aa93-518ad27b6515","block_type":"box","text":"Suitability. (All Funds)","page_number":125,"box":{"x":101,"y":196,"width":161,"height":11}},{"id":"6231f980-7e40-4769-8e6c-fb07e5ba2fc6","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":125,"box":{"x":101,"y":218,"width":793,"height":12}},{"id":"4018c2d1-cd92-4d7f-bafb-134f25d36e95","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":125,"box":{"x":68,"y":234,"width":811,"height":11}},{"id":"809be282-5d3b-4364-b6b2-e279a22b58e8","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":125,"box":{"x":70,"y":249,"width":810,"height":11}},{"id":"ba57eeec-763d-4731-8063-9cc86005efa4","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":125,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"970b10e0-21d1-4870-abe8-b161d2b38a97","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":125,"box":{"x":68,"y":279,"width":460,"height":11}},{"id":"858c95f2-eb99-4989-a392-dfcee4b1518c","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":125,"box":{"x":102,"y":302,"width":264,"height":11}},{"id":"47b49656-4b10-4aed-9d7c-5bdf338da119","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":125,"box":{"x":102,"y":324,"width":745,"height":11}},{"id":"5bc17378-6005-4e42-b6bf-92758b884970","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":125,"box":{"x":68,"y":339,"width":807,"height":12}},{"id":"2500a835-c967-4f70-8910-0280ccb61156","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":125,"box":{"x":69,"y":355,"width":528,"height":11}},{"id":"dfb07d05-45f4-4528-88f5-94d6e1421343","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":125,"box":{"x":102,"y":377,"width":735,"height":12}},{"id":"53189544-a769-45d4-b0a4-ba83f8b9fdf2","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":125,"box":{"x":69,"y":392,"width":775,"height":12}},{"id":"dc4939d8-90eb-4efb-b706-a4e0b51a670b","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":125,"box":{"x":69,"y":407,"width":837,"height":12}},{"id":"a2d24d43-9ed1-43ac-b008-70bf687851e2","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":125,"box":{"x":69,"y":423,"width":799,"height":11}},{"id":"bccd938c-8faa-4dc6-ac1b-185c23c81fba","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":125,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"f6bef863-56a3-45e1-bb5e-51619e13e52b","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":125,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"28319416-35f2-4f2e-a472-475c2f961bf5","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":125,"box":{"x":68,"y":468,"width":802,"height":11}},{"id":"7e85e8c4-883e-4b4e-b1cb-da44677654c2","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":125,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"d67cf530-f6c3-4cd1-b434-75cb6d5e75ee","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":125,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"ab0f1b6b-4dc9-4538-a130-1a295aff516f","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":125,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"57113dc5-1026-4b4e-aa25-66b9f9702c98","block_type":"box","text":"(","page_number":125,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"21fe31db-1de7-4d82-a485-2685b771508d","block_type":"box","text":"i.e.","page_number":125,"box":{"x":74,"y":529,"width":21,"height":8}},{"id":"456d91bc-547c-4208-a14a-dca5b51d80e4","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":125,"box":{"x":97,"y":529,"width":806,"height":11}},{"id":"8880b00c-5a7d-4e88-9c45-79d0aaf37483","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":125,"box":{"x":70,"y":543,"width":824,"height":12}},{"id":"86190307-9412-42b5-bb54-6e3e0afe2635","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":125,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"c3f4320d-482d-4a9f-b04c-160dbc810e98","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":125,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"92665bbb-9551-4bae-8901-2f34e73c02d9","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":125,"box":{"x":69,"y":589,"width":815,"height":11}},{"id":"97348f45-a471-4dda-84e1-31ea9c4b1f1c","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":125,"box":{"x":69,"y":604,"width":781,"height":11}},{"id":"b4c8b481-f1be-4f8c-a4f8-c90cfa0145df","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":125,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"18c6f572-f071-4c0f-961b-b35b8c9c6b7e","block_type":"box","text":"regarded as the sole issuer.","page_number":125,"box":{"x":69,"y":634,"width":198,"height":12}},{"id":"301e6d45-8ec6-4052-a4de-d2bea1475bff","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":125,"box":{"x":102,"y":657,"width":784,"height":11}},{"id":"20376ea2-98f2-4eb3-8f33-c9b1ec6b2de3","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":125,"box":{"x":69,"y":672,"width":819,"height":11}},{"id":"dd724f37-d92e-4d2f-bffe-1806c3d0b882","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":125,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"2301ba69-82dc-462e-a45c-6f65330db724","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":125,"box":{"x":70,"y":702,"width":747,"height":12}},{"id":"a5744553-738a-4557-89c1-ded81cbbe671","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":125,"box":{"x":70,"y":717,"width":834,"height":12}},{"id":"aa11c194-fe9e-4c14-a2db-67802a929d66","block_type":"box","text":"75% of its total assets.","page_number":125,"box":{"x":69,"y":732,"width":165,"height":10}},{"id":"48e1d8de-dd8b-4026-8181-03919d8ad7a7","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":125,"box":{"x":268,"y":762,"width":442,"height":10}},{"id":"2037bac0-7df8-4565-abb7-548dde5de68b","block_type":"box","text":"Directors and Officers","page_number":125,"box":{"x":69,"y":792,"width":159,"height":9}},{"id":"e7f30642-7378-406a-adca-7c21209233c5","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":125,"box":{"x":102,"y":815,"width":733,"height":11}},{"id":"8f14dcff-e52a-49f4-b7a9-8d3d3aec9248","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":125,"box":{"x":69,"y":830,"width":783,"height":11}},{"id":"0527ece9-8fd2-4ac8-9b34-a209c0b619e9","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":125,"box":{"x":69,"y":845,"width":795,"height":12}},{"id":"553e9251-b390-4a4c-b30c-81006eb4300e","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":125,"box":{"x":69,"y":860,"width":789,"height":12}},{"id":"c049f245-5ae7-4322-a862-e50c771154b0","block_type":"box","text":"II-81","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d438cb64-3e8f-4613-99f7-d6f11e962bcd","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4bddd2c8-c5c3-4408-ad63-061c8c258c06","block_type":"box","text":"Management Arrangements","page_number":126,"box":{"x":69,"y":45,"width":202,"height":11}},{"id":"da935d9e-fb16-4828-969a-0a20151a01cd","block_type":"box","text":"Management Services.","page_number":126,"box":{"x":102,"y":67,"width":162,"height":12}},{"id":"8c0f1fa7-f4cd-45a9-97df-5f62cb8231ad","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":126,"box":{"x":270,"y":68,"width":615,"height":11}},{"id":"dd5bb239-d8c4-4546-bff9-cd40c934aab5","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":126,"box":{"x":69,"y":82,"width":836,"height":12}},{"id":"1417eba8-5584-4a49-b420-84ac0f738f7c","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":126,"box":{"x":70,"y":98,"width":820,"height":11}},{"id":"1626d5bb-de65-4780-9183-bfc628e09353","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":126,"box":{"x":68,"y":113,"width":832,"height":11}},{"id":"f652fa8d-8f23-4aee-8746-880283834d06","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":126,"box":{"x":70,"y":128,"width":801,"height":11}},{"id":"19f517d0-409b-4f19-8d87-6f44dfc88fff","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":126,"box":{"x":69,"y":143,"width":370,"height":11}},{"id":"600e5d44-17be-4e4f-95a8-08c38e280488","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":126,"box":{"x":102,"y":166,"width":778,"height":11}},{"id":"96ee38d5-e180-4ef7-8173-2c61295ec928","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":126,"box":{"x":70,"y":181,"width":800,"height":11}},{"id":"309f6749-d165-46ce-a04a-416054b752d4","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":126,"box":{"x":69,"y":196,"width":810,"height":11}},{"id":"4b0bd868-b3c2-4ce1-8ff8-ca67ddd8b10e","block_type":"box","text":"Management Fee.","page_number":126,"box":{"x":102,"y":219,"width":126,"height":11}},{"id":"08e66a0e-3c1f-421b-a956-ec4daa71176e","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":126,"box":{"x":235,"y":219,"width":646,"height":11}},{"id":"89010463-6e09-420b-807d-c086c19b1dea","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":126,"box":{"x":68,"y":234,"width":841,"height":11}},{"id":"3a2c40b9-224d-4342-a3df-fb53c563741d","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":126,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"78ba5a81-7bae-4538-87d3-042611c50a1f","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":126,"box":{"x":68,"y":264,"width":746,"height":11}},{"id":"8835eee7-c1c0-4462-bec8-78655ea84aa3","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":126,"box":{"x":70,"y":279,"width":825,"height":11}},{"id":"f8c3ece6-1d7c-4bb4-a6e3-bb1dc6eb9a8d","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":126,"box":{"x":102,"y":302,"width":774,"height":11}},{"id":"2687257b-1b78-471b-b56f-81126b68a595","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":126,"box":{"x":69,"y":317,"width":826,"height":11}},{"id":"e0376cc5-3373-48de-8875-8adc7ef85d77","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":126,"box":{"x":70,"y":332,"width":820,"height":11}},{"id":"0e2adf64-afa3-44c9-ba58-190959732ef9","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":126,"box":{"x":68,"y":347,"width":797,"height":11}},{"id":"6247ea7e-7702-4b37-b559-76d04ec16c83","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":126,"box":{"x":70,"y":362,"width":830,"height":11}},{"id":"2482b65c-58af-4939-9a27-7fa5d4953ed5","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":126,"box":{"x":69,"y":377,"width":802,"height":12}},{"id":"c68c8ee4-c114-46a9-a492-6711b1cd41b6","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":126,"box":{"x":70,"y":392,"width":809,"height":12}},{"id":"ee441f0b-0e5b-47c8-96cf-7737d4d85033","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":126,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"ea9f7b87-bc53-45e5-97a8-4f56e9de9615","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":126,"box":{"x":69,"y":423,"width":830,"height":11}},{"id":"e1411e69-58c2-4746-bc54-eb3eb2a10326","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":126,"box":{"x":70,"y":438,"width":784,"height":11}},{"id":"76018dae-c44d-41af-98f3-7a9be6810c95","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":126,"box":{"x":69,"y":453,"width":767,"height":11}},{"id":"41117bcc-e9b7-41c6-9447-14e58eda028c","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":126,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"c99a374e-e220-4b01-888c-31f72f224cf1","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":126,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"c3ce7d00-28fc-4619-a893-5dcf02b08499","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":126,"box":{"x":69,"y":498,"width":794,"height":11}},{"id":"1b629a42-c36c-490e-a3cd-60ee370790dc","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. In addition, the Manager provides cer tain","page_number":126,"box":{"x":69,"y":513,"width":786,"height":12}},{"id":"9cc8aa69-8301-4cc1-b9a6-13f4576fe0d9","block_type":"box","text":"accounting services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":126,"box":{"x":69,"y":528,"width":790,"height":12}},{"id":"7d95644e-59fb-4daf-a24e-db7aab0241e7","block_type":"box","text":"cer tain promotional expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain","page_number":126,"box":{"x":69,"y":543,"width":817,"height":12}},{"id":"10e3ce66-f109-4d5e-8871-a35319881bf5","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":126,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"b758b172-d2aa-4647-99a2-7e0f0bf7a7d2","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":126,"box":{"x":70,"y":574,"width":743,"height":11}},{"id":"c2b7102c-bd29-4822-9185-7c3747bfe69e","block_type":"box","text":"Sub-Advisory Fee.","page_number":126,"box":{"x":102,"y":597,"width":124,"height":11}},{"id":"080a9a3a-ed49-4449-a3d8-ccc274726b5b","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":126,"box":{"x":232,"y":596,"width":643,"height":12}},{"id":"cc306291-8680-4f8f-b362-d5d12cff1026","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":126,"box":{"x":70,"y":612,"width":839,"height":11}},{"id":"fc5a0710-7c3a-44ba-aa0f-2f67d27a7004","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":126,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"7bee886f-c402-4107-9a38-924f91918d4f","block_type":"box","text":"Organization of the Manager.","page_number":126,"box":{"x":102,"y":649,"width":204,"height":12}},{"id":"12948e0c-7b60-49eb-b730-d96303afc4af","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":126,"box":{"x":313,"y":649,"width":560,"height":12}},{"id":"c481e730-ea6f-40cd-b603-9ff50e13143f","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":126,"box":{"x":70,"y":664,"width":819,"height":12}},{"id":"296538f3-820d-45f9-98a2-f906a8b6337c","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":126,"box":{"x":70,"y":680,"width":817,"height":11}},{"id":"b7c2b281-9f43-45c2-8a5f-0fe565232897","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":126,"box":{"x":69,"y":695,"width":768,"height":11}},{"id":"eed9581d-3402-48a4-9462-1f5fb91c8284","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":126,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"97960e58-8f7e-4aca-975a-cd309f16a493","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":126,"box":{"x":69,"y":725,"width":517,"height":11}},{"id":"4fba9652-ce6d-4f81-b413-d567dcf65bce","block_type":"box","text":"Duration and Termination.","page_number":126,"box":{"x":102,"y":748,"width":182,"height":9}},{"id":"cd2f1162-c6fa-45d6-8d7d-6b455a5c2472","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":126,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"55771d0d-c187-403c-aa59-fe1a12151752","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":126,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"4312c50d-52e2-4aad-ad8e-9448f530e55d","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":126,"box":{"x":69,"y":778,"width":803,"height":11}},{"id":"394f05bf-901a-4658-a84f-3d5e23717c2c","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":126,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"be882a33-11a9-40df-9ede-0b68a2e8605b","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":126,"box":{"x":70,"y":808,"width":778,"height":11}},{"id":"c01d031c-8486-46e1-ba55-aa27b6fdadd1","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":126,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"3e9e472e-4828-4df5-9926-2bcd1c8c67bb","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":126,"box":{"x":69,"y":838,"width":388,"height":11}},{"id":"832ac6a3-aecb-46b4-a01c-d90e01987ef2","block_type":"box","text":"II-82","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"02fe4b82-be50-4f75-a94f-fa219d31b352","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20ef69d0-b439-4bec-8b37-ae6e208d45d5","block_type":"box","text":"Other Service Arrangements","page_number":127,"box":{"x":69,"y":45,"width":205,"height":11}},{"id":"88d14412-527b-4b66-a7e1-74f9b426732c","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":127,"box":{"x":101,"y":67,"width":338,"height":9}},{"id":"d4863eb1-285b-4bef-88e4-9e82d1c1b68a","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":127,"box":{"x":446,"y":67,"width":439,"height":12}},{"id":"91f46a5c-e382-4b6e-bdc8-88bb5edea4fe","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":127,"box":{"x":69,"y":82,"width":818,"height":12}},{"id":"a7c4cadf-56f7-48b7-8847-33ad5c175e00","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":127,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"167e7c95-c80e-4e5d-9618-19945ffb8a90","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":127,"box":{"x":69,"y":113,"width":833,"height":11}},{"id":"adb13bc9-fef6-417f-a4ca-3a48df0a6a4c","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":127,"box":{"x":68,"y":128,"width":738,"height":11}},{"id":"f1aa3944-74f2-4253-9c25-28861d1276f0","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":127,"box":{"x":68,"y":143,"width":839,"height":11}},{"id":"c2fd9059-e511-4a01-ac8b-bc8e21529b0a","block_type":"box","text":"that Fund’s SAI.","page_number":127,"box":{"x":68,"y":158,"width":113,"height":9}},{"id":"d5a95f56-6607-4a2d-920b-5b5a70dda536","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":127,"box":{"x":102,"y":181,"width":755,"height":11}},{"id":"9dcfb434-6a79-4bbc-a9f0-3428a255bed0","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":127,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"9599f2bc-4f73-4b6d-b3d7-b261c89b893c","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":127,"box":{"x":70,"y":211,"width":809,"height":11}},{"id":"a27deb69-ad15-4d75-b21e-59d1820da19c","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":127,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"cc21cddf-fd53-4f19-8611-96f5cc427c76","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":127,"box":{"x":70,"y":241,"width":362,"height":11}},{"id":"6bca21bf-a763-48ae-86aa-e79775014eba","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":127,"box":{"x":102,"y":264,"width":390,"height":11}},{"id":"d4c0b226-fc59-464f-9247-383d35e5ef0f","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":127,"box":{"x":499,"y":264,"width":364,"height":10}},{"id":"e3c976a5-75f5-4b17-a47e-2806c95ea489","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":127,"box":{"x":68,"y":279,"width":832,"height":11}},{"id":"53a5f352-ae75-48c9-9bb7-fa4703158107","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":127,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"a50ea124-6cde-4aa9-8498-3917f3e7f0cd","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":127,"box":{"x":69,"y":309,"width":800,"height":11}},{"id":"47f05b71-408d-4100-8ca9-103b00d97b12","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":127,"box":{"x":70,"y":324,"width":810,"height":12}},{"id":"57962e7e-a4c9-461f-b6ef-7671bf68559c","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":127,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"b7c20975-0a0e-400c-8301-386e231d0645","block_type":"box","text":"shareholders of the Fund.","page_number":127,"box":{"x":69,"y":355,"width":181,"height":9}},{"id":"220e28f8-d38c-4ca5-86cc-8a4aff5515b1","block_type":"box","text":"Transfer Agency Services.","page_number":127,"box":{"x":103,"y":377,"width":180,"height":12}},{"id":"acdf9ad1-a1bc-4509-9e96-7f8e8133570c","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":127,"box":{"x":291,"y":377,"width":595,"height":12}},{"id":"2c6d7b10-c25e-47f8-b8a6-bc130ae5ed22","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":127,"box":{"x":69,"y":392,"width":816,"height":12}},{"id":"9b915123-da72-4859-ada9-2a654990823f","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":127,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"43a3eeff-b416-4151-9872-6f41b7f8605c","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":127,"box":{"x":68,"y":423,"width":792,"height":11}},{"id":"844abc1e-bd2b-4516-b0bf-429b7211ec9f","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":127,"box":{"x":68,"y":438,"width":819,"height":11}},{"id":"f63a45a5-20c6-4e3b-b1bb-e3c91e37c5d3","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":127,"box":{"x":68,"y":453,"width":839,"height":11}},{"id":"3935c2cc-ba07-41d8-bb10-61e6caccb27f","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":127,"box":{"x":70,"y":468,"width":831,"height":11}},{"id":"c5aa47d2-bd41-4ab5-8a7c-2b92c240290a","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":127,"box":{"x":68,"y":483,"width":813,"height":11}},{"id":"b727ba11-3251-4b67-8d67-6f2239ba89b7","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":127,"box":{"x":70,"y":498,"width":836,"height":11}},{"id":"9591c149-ebc8-4c09-9855-4011bd71b60b","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":127,"box":{"x":69,"y":513,"width":806,"height":12}},{"id":"77309ac4-7df4-43e5-8aae-f6cffb5d7355","block_type":"box","text":"class on a recordkeeping system.","page_number":127,"box":{"x":69,"y":529,"width":238,"height":11}},{"id":"b8afc3d6-ebc8-4acb-a076-5fb0712b59ae","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":127,"box":{"x":102,"y":551,"width":338,"height":11}},{"id":"2b3be697-1a1b-46e6-a38c-90c2cfd69e66","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":127,"box":{"x":446,"y":551,"width":441,"height":11}},{"id":"9860feee-2515-49af-9906-fa1ff570fca2","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":127,"box":{"x":69,"y":566,"width":840,"height":11}},{"id":"2e5373e3-8789-441d-b9b8-ced6b1d31fec","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":127,"box":{"x":69,"y":581,"width":823,"height":12}},{"id":"c7202d0b-53be-4cac-9976-bcf36e749d11","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":127,"box":{"x":69,"y":596,"width":627,"height":12}},{"id":"37bb8df7-a668-4e50-9595-aed8f9d37569","block_type":"box","text":"Custodian Services.","page_number":127,"box":{"x":102,"y":619,"width":141,"height":9}},{"id":"91e1eb53-262f-4944-be30-83dfe65e8b61","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":127,"box":{"x":249,"y":619,"width":654,"height":11}},{"id":"cd83c10d-3756-49eb-b008-8614f08d0ded","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":127,"box":{"x":70,"y":634,"width":820,"height":12}},{"id":"557505dc-f22e-4d57-ae5b-e5ba7665ee98","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":127,"box":{"x":70,"y":649,"width":814,"height":12}},{"id":"cbf657d7-edf7-4044-88c4-331bcaf5dd7b","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":127,"box":{"x":68,"y":664,"width":802,"height":12}},{"id":"1bba82b3-85bc-4a58-bb60-ff991ff45382","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":127,"box":{"x":69,"y":680,"width":839,"height":11}},{"id":"3cf97965-bfff-40d6-9f57-3fe5623becba","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":127,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"12dd6c8c-7cbf-46fc-8b07-70a62ea4d185","block_type":"box","text":"cer tain assets.","page_number":127,"box":{"x":69,"y":710,"width":106,"height":9}},{"id":"a850927a-e34b-45f9-994a-a2fe9751b9b3","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":127,"box":{"x":102,"y":732,"width":716,"height":11}},{"id":"089a67c7-070f-4b64-9fd9-6dcec619c1ac","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. 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These are considerations of which investors in a Fund","page_number":133,"box":{"x":69,"y":836,"width":804,"height":11}},{"id":"b2b55b80-1f52-40d7-b76e-48d00884e32e","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":133,"box":{"x":69,"y":851,"width":806,"height":11}},{"id":"97ee4f7a-cfd6-4d67-8232-9cf9b825f55a","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":133,"box":{"x":101,"y":874,"width":722,"height":11}},{"id":"5efe2d0b-ae8e-4db4-8614-2d5d54938dbe","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":133,"box":{"x":69,"y":889,"width":827,"height":11}},{"id":"d91c8312-4ac3-442d-92bc-65e023acb02b","block_type":"box","text":"or sold by a Fund.","page_number":133,"box":{"x":69,"y":904,"width":125,"height":11}},{"id":"48e00cc9-2780-4130-8c4e-6d767e907159","block_type":"box","text":"II-89","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"758c4f6b-a790-4652-adda-58644713af78","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c64ab7bf-5e23-4268-84c1-2a108ca5e663","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":134,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"081c04a9-ec9d-4481-9c38-f91a813586be","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":134,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"8d994663-92e1-4aa3-94f5-bdde2ca6aaa0","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":134,"box":{"x":70,"y":75,"width":828,"height":11}},{"id":"678fdb61-461d-4f73-9997-3b4306725492","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":134,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"60a1523e-41d2-4afb-b657-28ded8d60e7b","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":134,"box":{"x":69,"y":105,"width":803,"height":11}},{"id":"fceb7cf3-25c6-4e8c-893e-6598e5f80367","block_type":"box","text":"services provided by BlackRock","page_number":134,"box":{"x":69,"y":120,"width":224,"height":11}},{"id":"c33c63fd-c1f0-47f7-b124-c220fc8b315a","block_type":"box","text":".","page_number":134,"box":{"x":295,"y":128,"width":2,"height":1}},{"id":"8dc25884-03d9-48e6-ab2b-5fe2d1c3dadd","block_type":"box","text":"BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":134,"box":{"x":304,"y":120,"width":603,"height":12}},{"id":"7320b6f5-5e16-4d34-9164-ccfe829d27e7","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":134,"box":{"x":70,"y":135,"width":791,"height":11}},{"id":"3b152e16-e496-43b2-8c7e-a0dac29e7b78","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":134,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"f6adff5e-f7b9-4fd8-a4ad-3b62dd4fb13a","block_type":"box","text":"a Fund invests.","page_number":134,"box":{"x":69,"y":166,"width":106,"height":9}},{"id":"96f7ee6f-e035-432b-993b-f48120db5425","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":134,"box":{"x":102,"y":188,"width":785,"height":11}},{"id":"20cac795-7a8d-49ea-b053-ecb42f742e79","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s per formance. Such transactions, par ticularly in","page_number":134,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"26147dbb-bc97-4cee-87d8-7de2c4a0908f","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":134,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"5c4b48ca-c049-4269-b477-c90ae4897985","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":134,"box":{"x":68,"y":234,"width":652,"height":11}},{"id":"2c1c2681-c2f0-4104-b3ac-871b2a9ff4bc","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":134,"box":{"x":102,"y":256,"width":787,"height":12}},{"id":"22b0da3e-7411-4f99-a49f-d88486d3d934","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":134,"box":{"x":69,"y":272,"width":832,"height":11}},{"id":"c7b1a05d-5f02-4124-91b2-d6713573f522","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":134,"box":{"x":70,"y":286,"width":816,"height":12}},{"id":"44714e80-32b6-47bc-8934-9d3fb8fa6078","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":134,"box":{"x":70,"y":302,"width":831,"height":11}},{"id":"47e0a08f-f8cf-4501-93f7-0a2bd3e7cd29","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":134,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"c15cd468-64ba-4ca7-8277-08ce47763235","block_type":"box","text":"based on the information received.","page_number":134,"box":{"x":69,"y":332,"width":247,"height":9}},{"id":"78a72696-02b2-4207-9e52-8768a3d302a1","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":134,"box":{"x":101,"y":355,"width":777,"height":11}},{"id":"0757eb47-76a3-4a04-8510-c5774decbc83","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":134,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"1fe99a64-1c99-457d-b292-ffa73512026e","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":134,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"30176a95-73ea-4501-8ba9-1aa0a235567c","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":134,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"6eafaaf6-0209-47f6-aa5d-836acff066ba","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":134,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"9d2a9f46-df08-479d-9a3d-8b4cb77b9514","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":134,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"c340ab5d-2888-4a05-bf85-f4dc6e926eaa","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":134,"box":{"x":69,"y":446,"width":827,"height":11}},{"id":"9aa32eff-fb16-493e-af87-7cd9c199099c","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":134,"box":{"x":70,"y":460,"width":785,"height":11}},{"id":"b084b5b4-2582-4b05-97ae-d5a01b03ccbc","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":134,"box":{"x":69,"y":475,"width":767,"height":12}},{"id":"7a94e714-c58a-45a2-aedd-e3cda85f40e2","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":134,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"7f48964a-5624-481e-8ce5-f5400534118c","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":134,"box":{"x":68,"y":506,"width":827,"height":11}},{"id":"cdaad2aa-8cd5-45a6-8351-6afbd1569eb6","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":134,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"4f4c057d-71ab-4f46-90cb-3b91adb35353","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":134,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"119188e3-c728-4290-8a8f-de07091b27d0","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":134,"box":{"x":69,"y":551,"width":781,"height":11}},{"id":"26822a84-d9ee-42c1-9b8f-977113e60c4e","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":134,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"8712c143-ec92-4232-82bf-49feabe91a7f","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":134,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"5c385410-4ee3-49b7-bd35-fdc4b3002eb4","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":134,"box":{"x":70,"y":596,"width":805,"height":12}},{"id":"e4c38a50-12cb-4e6f-933f-c72b2b9ccd1a","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":134,"box":{"x":70,"y":612,"width":797,"height":11}},{"id":"1374ea50-7d24-4b9d-adf3-16779bbae202","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":134,"box":{"x":69,"y":627,"width":573,"height":11}},{"id":"b36335e8-d11c-40c1-bfc6-b1f9095db754","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":134,"box":{"x":102,"y":649,"width":797,"height":12}},{"id":"87a34e38-f3a4-4583-8132-3fb1b27301a3","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":134,"box":{"x":69,"y":664,"width":791,"height":12}},{"id":"c1fb47ab-a3e9-42d8-8e12-78d58219dad5","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":134,"box":{"x":69,"y":680,"width":835,"height":11}},{"id":"e61b1d88-ec7d-444e-b27e-adf68901070a","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":134,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"b1ec35a8-764d-4e0d-b6b9-5379e9c0df53","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":134,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"5de59e94-011f-4a23-8b07-031548d716f1","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":134,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"bddd2770-5b59-41a7-85d1-97bee89607ba","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":134,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"c526016f-f730-47b1-8d15-1407400d138f","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":134,"box":{"x":70,"y":755,"width":777,"height":11}},{"id":"fc08f974-a0fd-4cdd-b623-fc5e5669dfa7","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":134,"box":{"x":70,"y":770,"width":780,"height":11}},{"id":"91bde427-8d97-49e1-9992-ff7e7a770d2c","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":134,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"e21224c3-b258-40ff-a177-1f6039d19b84","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":134,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"5b7cf0c3-0832-4ae1-acff-9b21a72328bf","block_type":"box","text":"Funds.","page_number":134,"box":{"x":70,"y":816,"width":44,"height":9}},{"id":"13fc4904-fd86-410c-8fce-1cfd88e9b885","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":134,"box":{"x":102,"y":838,"width":755,"height":11}},{"id":"8beaffbb-2770-4361-8e7f-55b45c698a26","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":134,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"ff0860e8-087a-4e89-b2d7-5e7e1c5e8136","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":134,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"30443128-949d-459c-817c-322a5f083429","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":134,"box":{"x":69,"y":884,"width":679,"height":11}},{"id":"bf067f9e-3b6a-4e89-81b9-621af033014c","block_type":"box","text":"II-90","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"504696e9-a828-4870-ba37-4616fc25c0d6","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67934558-d1f4-469f-892d-4d15be803326","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":135,"box":{"x":101,"y":45,"width":760,"height":11}},{"id":"e3719034-006e-4baa-a4ad-2371133a1cdd","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":135,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"4245d0ff-12d9-490a-bb99-b3da102ce015","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":135,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"b95bea51-3855-461e-b219-4147278ffef7","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":135,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"277e581b-ca06-4897-b012-5808890bcbfe","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":135,"box":{"x":68,"y":105,"width":421,"height":11}},{"id":"1ff6e29a-9e7a-4366-8c50-8c54c1d534af","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":135,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"e0812e21-8d85-4d44-8ffd-a42c0d032e39","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":135,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"a0967dad-eb7c-492b-add2-98d77908e61d","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":135,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"ce82f4a1-e883-47d7-bcf1-5bd117adbb31","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":135,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"fcb11906-e236-407e-819b-8d5ff48a63b2","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":135,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"ea2a5422-fec3-4e27-a5e4-8bc5bf47a962","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":135,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"592c13c3-7874-4699-9610-0f17fef14485","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":135,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"3f00c99d-3140-46f3-abe3-308fd830843b","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":135,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"f44011e8-a620-4a5f-a353-3060a7b2d078","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":135,"box":{"x":69,"y":256,"width":840,"height":11}},{"id":"e6513cf8-d2c5-4610-8dfd-153c05f02d9a","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":135,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"1222d0aa-5820-456e-b0a4-28f6bff9fb43","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":135,"box":{"x":70,"y":286,"width":828,"height":12}},{"id":"5d18e170-b12d-4b17-941a-b58d53887a8a","block_type":"box","text":"case.","page_number":135,"box":{"x":69,"y":304,"width":37,"height":7}},{"id":"cb7b9785-fa7e-48fa-82e8-3c5510066a0b","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":135,"box":{"x":101,"y":324,"width":791,"height":12}},{"id":"5419ac45-d4a9-42ea-bee0-0df7c90760d3","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":135,"box":{"x":70,"y":340,"width":824,"height":11}},{"id":"d9ba7663-274a-4e46-89d8-31149193451c","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":135,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"cd72d6d9-e88d-4aa6-993a-85521a690909","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":135,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"bce37a4a-5e22-4dce-8aa8-07fb1252ba12","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":135,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"6bbf5bcb-57bb-41de-a165-5c27db5b6ff9","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":135,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"75823ea3-a62d-45b0-9ca2-46f942cbddf0","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":135,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"1ddd6c0f-25e9-42d0-ac09-927fc915e505","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":135,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"108cf649-1f18-4914-b714-fc91a56287fe","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":135,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"2eea9b79-9f83-47ec-b102-9d291cd997f2","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":135,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"846c96ce-da16-4bc5-bbbc-236bc581de8a","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":135,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"81360a3c-cddd-4df3-81e1-f630dae829e2","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":135,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"47295e63-e692-427a-8b11-46bfe5ba9c91","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":135,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"9298ac0c-99c9-4763-b455-68927ef06179","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":135,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"a187ec73-de67-4b8e-9e94-8b5775893908","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":135,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"669b4590-8827-4a0b-aee8-f113f3aa146d","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":135,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"128ebff2-c46f-4db3-9b00-42627bcc8f53","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":135,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"e5bb87ec-384c-4a41-a919-a985c1941297","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":135,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"6e6c9aa7-ea80-4f7a-ac7d-42e18e0ec86e","block_type":"box","text":"managing a Fund.","page_number":135,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"6dd968ba-e416-48fc-870c-9e7cb9e2822d","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":135,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"771da4bc-2d0c-4978-95e7-6755c8887845","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":135,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"1de7fb7b-fb14-42b7-905c-f8b57d738eb3","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":135,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"b85cd057-6940-4e53-9eb8-e9d05d0bae4c","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":135,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"6b2d7305-e439-4d83-b168-ea22ec7112b9","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":135,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"2c0f0c73-6b97-4135-876c-9f26be856c4b","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":135,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"3da9ea0b-7c23-4045-a7c2-21a8abfc554e","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":135,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"872d7ed9-0e73-4694-88b9-4a951a373554","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":135,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"ede946f0-03ac-4552-a77b-8295378c4e58","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":135,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"26635b30-ea3b-4aa2-b23a-c1e6ef78d063","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":135,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"172bb4e3-46f7-4bee-ab09-1a7d0b39b5d9","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":135,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"7d68638d-2f14-408c-a3b8-0c0f29d9ee2c","block_type":"box","text":"as the counterpar ty, principal or issuer. 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In addition, the purchase, holding and sale of such investments by a","page_number":136,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"24b8758d-4363-448d-8c8e-7ef2867434f7","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":136,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"30fef360-8019-4d6d-b7d9-4d565d34a407","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":136,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"6ae0fd08-2fd5-4eb3-8130-560fb3a2be83","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":136,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"95e87a19-f8f5-4a88-9ea7-e65907911059","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":136,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"61eaf417-7fb1-4c16-a9a0-d87e721a3804","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":136,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"db09ec73-7038-451f-ba58-f5e6496798a9","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":136,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"32902fad-6bbe-4338-ab03-b0090dc28f59","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":136,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"fb4866a2-53d8-4806-8acb-5f1d4833dd2c","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":136,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"e5dd438b-fadf-434f-af75-1ffabb8a5774","block_type":"box","text":"under management for BlackRock.","page_number":136,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"49e0b7ae-6e8d-45d5-b6b2-3d06eed459b2","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":136,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"c0e14569-0e9e-4d70-a66f-b88f67d76299","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":136,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"49661fdf-2e8a-41b7-aedd-09916a310e4d","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":136,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"9b5cde95-e82a-49db-a527-030b95cab15a","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":136,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"b78ba213-8780-4915-953f-6066ec5fa098","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":136,"box":{"x":70,"y":272,"width":781,"height":11}},{"id":"04aa9091-50ed-4282-b29d-6e09b15c2e76","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":136,"box":{"x":101,"y":294,"width":779,"height":11}},{"id":"d1067fda-431a-4a5f-a842-96dbe511efc9","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":136,"box":{"x":69,"y":309,"width":795,"height":11}},{"id":"cbfb96b4-6680-4652-b1ab-9ab22bdc932f","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":136,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"675d622c-7278-49e9-93e0-2c7b6f5780ba","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":136,"box":{"x":68,"y":339,"width":802,"height":12}},{"id":"a3c7f6cf-7279-4bc9-8722-01563e2b0344","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":136,"box":{"x":69,"y":355,"width":792,"height":11}},{"id":"cb81f19c-0b88-44ec-97fd-63a40dd68081","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":136,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"e3f700a3-f4c2-4533-8765-6540a256b42c","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":136,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"f1c6ba99-a707-4f5e-b8f1-33336640ce89","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":136,"box":{"x":68,"y":400,"width":726,"height":11}},{"id":"66ea910a-1d32-491d-b483-1139ed21694a","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":136,"box":{"x":102,"y":423,"width":796,"height":11}},{"id":"7ef47e7e-3403-46d2-8f7f-6d7cf3bf416d","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":136,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"00905d38-435a-490d-9853-351f61c87619","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":136,"box":{"x":69,"y":453,"width":823,"height":11}},{"id":"a66f9bbb-c7b3-4294-9b9c-d2f70ef45e20","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":136,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"ab000731-ac7e-4e5f-8aea-0477dbdfee8b","block_type":"box","text":"any such fees or other amounts.","page_number":136,"box":{"x":69,"y":483,"width":230,"height":11}},{"id":"4b666071-64db-4f11-bdca-4ad48a414caf","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":136,"box":{"x":101,"y":506,"width":805,"height":11}},{"id":"7bdafbcb-bc23-4f5b-abf9-361cef58e6d0","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":136,"box":{"x":70,"y":521,"width":768,"height":11}},{"id":"bdc71584-2865-4c81-9ae0-fa9aa9ed899e","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":136,"box":{"x":101,"y":544,"width":766,"height":10}},{"id":"195d28fb-977f-4175-b30a-fb0ff7174653","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":136,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"b702d6f1-14a8-459f-8f87-4ebc866bfa3b","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":136,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"b2aed14c-fffc-429f-b4a6-7bfc857aaa9c","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":136,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"71fd338c-dd98-4bc5-a357-b9432367abff","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. 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As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":136,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"a8e468bd-2c00-4fb7-93f6-e9ae086a1906","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":136,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"bbbe7cb4-6e61-41dd-b657-ec8e72bc0961","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":136,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"5da4fc08-8669-47b4-add9-e12528552f5c","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":136,"box":{"x":68,"y":785,"width":820,"height":12}},{"id":"bd5ac288-0874-4833-864e-f135a59d5562","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":136,"box":{"x":70,"y":801,"width":806,"height":11}},{"id":"d158b4d5-e898-4ca5-9905-0664a9bd008b","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":136,"box":{"x":70,"y":816,"width":816,"height":11}},{"id":"5c847177-4a3a-4e86-a85d-d9bebcae17af","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":136,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"0bd17ee5-cd11-411f-83d0-fc46a735ee32","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":136,"box":{"x":70,"y":846,"width":727,"height":11}},{"id":"1a8cd1cc-fdd1-4a7f-97b5-f1bb8a3f8936","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":136,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"243c540b-5192-4e8b-b58f-855ed5ce7ebd","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":136,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"8f111acf-d8e4-4ea7-8c28-fe0670c1a162","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":136,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"70c69632-0ad6-4a95-8e9d-c1fdd6876910","block_type":"box","text":"II-92","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"389fd135-ad9b-49a6-9f22-e7d6c162fce8","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b7db469-4ab0-4bb5-be16-2aa23d382249","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":137,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"e3fb4053-8f9a-403d-9b6e-dbd371ed32a9","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":137,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"f8da25f0-9930-4967-a98c-0ffc9175cbd9","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":137,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"3df84a60-8085-4a33-bcd9-3ec7216f2203","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":137,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"e42ed9da-cbee-449a-870d-43a8d0cb512e","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":137,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"fcf55272-fb3e-476f-a9b1-7a281e7cee55","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":137,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"18127097-afc2-4205-981d-66609a5fc9a3","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":137,"box":{"x":70,"y":143,"width":783,"height":11}},{"id":"d4128dc9-33de-41d5-a7e1-aefca1ec394c","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":137,"box":{"x":70,"y":158,"width":790,"height":11}},{"id":"b5d8c90b-e3e0-4174-82b9-7ce593908633","block_type":"box","text":"regulation.","page_number":137,"box":{"x":69,"y":173,"width":73,"height":11}},{"id":"5bad0e2c-ca75-483e-8c67-8875956fa458","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":137,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"e29d67b3-05e3-474b-8612-2585cd67e71c","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":137,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"6c4b2a29-bb90-4b6a-b40a-41db076fae1c","block_type":"box","text":"various program limits (","page_number":137,"box":{"x":68,"y":226,"width":168,"height":11}},{"id":"d029f610-e1f3-41fe-ba88-3d2d7348acf9","block_type":"box","text":"i.e.","page_number":137,"box":{"x":238,"y":226,"width":20,"height":9}},{"id":"b7dac8b9-c2a5-4107-a6af-2f2e94cc386d","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":137,"box":{"x":265,"y":226,"width":621,"height":11}},{"id":"3f4bc667-8b0d-4125-b85f-02f265b1825d","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":137,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"e82942c0-bcc1-40da-9930-60f0250b6426","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":137,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"95f3d18d-ffeb-4700-82a3-8eb32b1d2cb9","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":137,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"0d7a1e2f-08a8-439f-8ba6-8ce75f1ed7e6","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":137,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"cdb426ae-c85b-4adf-868c-19be4f35b70c","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":137,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"9c083357-fed9-4e46-9442-00565a6df5f9","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":137,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"82ca7baf-248d-44e4-b05c-5abfab1e88ed","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":137,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"0cca1ad0-8f3f-4ca6-bd15-61cc62382c35","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":137,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"a68a426d-f5b8-4e78-83ff-00eaaa1ff87f","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":137,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"058194f0-d1e3-477b-933f-1aef01e8a67e","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":137,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"6e1c5a16-b970-47a7-96b2-aad439d54258","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":137,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"a8de6d93-2751-4ae5-9b0e-d9678a4b632f","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":137,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"ba9a2b6b-8f7f-4031-b4b8-ace242bcab7f","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":137,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"66a76965-e5fd-49fd-b38e-c1e6cf6fbb08","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":137,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"6167a5c2-2d25-4287-9b7a-18dbd57ffbf5","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":137,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"1c3d9752-b3e4-4ed9-840f-fcbc6802de3f","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":137,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"f43f6182-382a-4a57-acf3-b345820c1a2b","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":137,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"ac9a3d5b-48f5-4931-afc8-b9403efd40bd","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":137,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"dd7ca852-8ace-4af7-804c-e0f086965cac","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":137,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"d1bd4322-62cb-41ff-bd90-5a9d0316ec27","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":137,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"0f23a6c5-2846-4e34-b175-9f7b4e84ee06","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":137,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"f9c23efd-e1a4-487f-959f-8736e5d3a3b4","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":137,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"902cd13a-bdd9-4f6f-ab02-11d1fc64efe1","block_type":"box","text":"than through client commissions.","page_number":137,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"127522a5-79c8-4615-81c1-8ddeee86a324","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":137,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"87a60350-8a79-4a9b-a153-950d9850d5e0","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":137,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"a648c901-f31a-41e8-aa90-ef7707c2ca0c","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":137,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"c7defc0e-1bcf-47d9-9358-1a43e4c92542","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":137,"box":{"x":70,"y":664,"width":780,"height":12}},{"id":"d5f1cc86-5001-489b-9ddf-a9d52f0e2e27","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":137,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"511ddda5-40ea-48ad-9690-88609bc3217c","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":137,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"8e56caa6-0160-4f0b-a85d-94e1cde5b1d2","block_type":"box","text":"research-oriented software and other services and products.","page_number":137,"box":{"x":69,"y":710,"width":430,"height":11}},{"id":"9069b95b-11b1-4135-b761-04014fae39b0","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":137,"box":{"x":102,"y":732,"width":785,"height":12}},{"id":"1e97aed5-ede8-4b7e-86e2-88452018f42d","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":137,"box":{"x":70,"y":748,"width":768,"height":11}},{"id":"708f5434-88b7-4661-96cb-070b24f53a5c","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":137,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"9112ddb4-1b0a-47c7-b2f9-d586ee37b761","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":137,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"03a37ead-5bbe-45d6-ba89-44e8d63a43bf","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":137,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"0c9f3677-2943-41ab-be8b-19ca9327b621","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":137,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"e9818409-4718-47cd-a7d4-5958331dd717","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":137,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"e203085e-e77f-4cb2-8173-fb807d3a2944","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":137,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"22f0608c-7925-45dc-9cb0-212c7692f485","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":137,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"dd8ac6ba-231c-4671-a355-7bf54a8b9f54","block_type":"box","text":"and services itself.","page_number":137,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"46f2678e-261b-4b77-bf22-09bbb63eb676","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":137,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"e88392eb-470c-4df6-b70b-f07149bc7ff2","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":137,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"b0881d18-7853-4783-91a3-c001cb138c03","block_type":"box","text":"II-93","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6bdacd1c-9478-4d47-8441-2210e9393747","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8da410aa-4ec7-4f8e-b29f-adbfa41f8051","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":138,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"1eda4584-579e-445e-807c-2542dc46f8b6","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":138,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"96813cf7-d03c-4501-9352-7ef7acc6840c","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":138,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"c80f9790-f201-489b-9623-f03020d69ef5","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":138,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"707c4750-f24a-4e32-84fd-8ff140ad9630","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":138,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"2d6919a6-2af9-475b-a4c7-be4a7ca8a272","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":138,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"9737903d-b26b-4f49-a2ac-24a06631c8a3","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":138,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"fc9ea4cf-6e8e-4599-b416-824732eb6b1c","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":138,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"fb201edf-2cdd-475d-a847-36b102f19657","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":138,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"ef3721d5-f6a8-44f3-890f-678a03a436ef","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":138,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"d0cc79ad-c666-4d55-af04-6aee7bff06d9","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":138,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"b32e1a4a-2ea9-451d-9b44-901d944b6cd5","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":138,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"029b29a1-f30a-4008-a768-4b9cdbcf01d0","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":138,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"eae46dce-6aa5-4fd0-9b18-72117caa62b2","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":138,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"df9767e3-a0dd-4b26-9305-d3edb3316ac2","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":138,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"75c8c753-2832-41bd-9b33-a4204c658af2","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":138,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"c7ace697-f39b-4e71-a457-f076c22b9a18","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":138,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"094f61c4-0814-48a6-8129-e3e6bd884ff0","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":138,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"5be915a7-ccc1-4f73-8aae-acbdad892e22","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":138,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"8f2194da-da40-4532-9421-f67d04edac29","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":138,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"f1254b59-5a2e-4c74-962f-ef8fcc99b0fa","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":138,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"155a84e1-75eb-49bd-b78b-1079476c6701","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":138,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"19650ffe-740c-4d44-b2d0-d522555570de","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":138,"box":{"x":68,"y":400,"width":837,"height":11}},{"id":"c25dc4de-723a-4521-9881-63fd014258b1","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":138,"box":{"x":69,"y":415,"width":795,"height":11}},{"id":"99113147-34ae-4235-98ee-ce7f435e4501","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":138,"box":{"x":70,"y":430,"width":490,"height":11}},{"id":"8ee6f5b3-b04a-4c82-92e7-5cfc3aa8adf6","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":138,"box":{"x":102,"y":453,"width":757,"height":11}},{"id":"8e4cba8f-61b2-4e53-a229-5a65802a8bf7","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":138,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"6726dd5d-4f93-449d-a3c8-04c7dbb34508","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":138,"box":{"x":70,"y":483,"width":837,"height":11}},{"id":"b965ed18-1e91-4570-9fdb-ee66e2854f5e","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":138,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"1c9c993c-79d1-46e1-9193-1038bfbe481c","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":138,"box":{"x":69,"y":513,"width":796,"height":12}},{"id":"126a9845-399e-4b20-bd7d-f8a3e56b4973","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":138,"box":{"x":69,"y":528,"width":830,"height":12}},{"id":"37e7be06-f01d-4421-8cb8-64fe7a1ba68e","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":138,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"e3552b32-b3b2-4558-949e-6df5e03c62ea","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":138,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"e0079f51-7b8b-4285-9b7d-2b4d13497a69","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":138,"box":{"x":69,"y":574,"width":355,"height":11}},{"id":"b2ae3f6b-6c51-4e49-bbb9-5f8dfb93d531","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":138,"box":{"x":102,"y":596,"width":742,"height":12}},{"id":"8af9aeb1-1ec7-42ec-bc7a-eb081047e9c6","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. 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BlackRock and its sales personnel may","page_number":138,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"f90d43de-4e4a-4e34-b1c4-f961d050dbbf","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":138,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"01c178de-0e7e-4a8f-9b66-717d2165c130","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":138,"box":{"x":70,"y":801,"width":745,"height":11}},{"id":"5176c04d-45e8-4910-a28f-3a5cfaaa8bbb","block_type":"box","text":"management. 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While BlackRock will generally","page_number":139,"box":{"x":69,"y":45,"width":825,"height":11}},{"id":"1d9f8c96-2a70-4a87-81f2-6b7b65655d55","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":139,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"2e4dffc1-b753-495c-adcf-35c9bdb5ddfe","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":139,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"321f66f4-034d-4897-b0ae-b2f7b10f6dca","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":139,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"c84a1785-5e2f-4862-8c3e-b1a66c00c8e7","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":139,"box":{"x":101,"y":113,"width":784,"height":11}},{"id":"19cdb08d-5f90-4556-963a-56377a5806ce","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":139,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"21aaac61-b544-4ed9-ba5a-02dbc0d39716","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":139,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"222f2488-084c-4339-8c14-80dcbf29d3b7","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":139,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"4ec1a870-fad7-4ead-965d-4bfb07d5ca3b","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":139,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"d9b62f71-de69-4933-9929-d8aa054b81e8","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":139,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"c3bccb3f-a139-4c3b-99c1-a67f4ca48873","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":139,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"dea74d49-29fc-4e1f-96f4-f70a9a940575","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":139,"box":{"x":68,"y":218,"width":832,"height":12}},{"id":"2160f10f-3b1a-4f31-8976-0c0a07d29766","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. 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The fair value of one or more assets or","page_number":139,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"0b401cb9-0e23-4a4e-8959-c46486b456fb","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":139,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"69b133f6-6ffd-4854-8b1e-4036eca63f80","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. 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In connection with any","page_number":139,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"c89feb78-df4e-43ac-852b-2a5d52ada18d","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":139,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"b24ecb92-d5df-4a48-a2d0-52e1354bff30","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":139,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"7e1b078e-bf3d-4d73-aced-e445eb57f451","block_type":"box","text":"some additional expenses.","page_number":139,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"1eb3d353-1dce-4c0a-abd1-017e639f4939","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":139,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"2f9f26ad-35cf-431c-9244-ded920b03bae","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":139,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"f4370429-221a-4de9-99b3-227a70fbb4e7","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":139,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"140e4a5e-b0b8-43ea-9e61-75006685ea43","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":139,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"f8905bfc-9dda-41d1-92e2-23818a3ffb62","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":139,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"fcd6f97c-0d68-43cb-959a-f1925fbd5ddc","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":139,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"5cbf6a65-01c8-4f2b-9a60-a2ff27776681","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":139,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"d6659ab8-d41f-4d16-85f4-72cb33b85259","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":139,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"d5ef3d7e-1d14-4157-8e4c-ec3189a365a2","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":139,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"2cee254c-396c-4193-913a-892a69be0348","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":139,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"13693ca7-4cee-4c61-ad62-dd4217fc25d0","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":139,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"02983c8d-80a1-4049-b018-d2e6a0865ef1","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":139,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"be054bfd-3c06-4936-abc8-3f57f60a8d34","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":139,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"bd97980a-f7fb-440d-8ed4-56d5d5d6b2b9","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":139,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"e55aeaea-3e95-4b94-b9e7-59fe5d573f48","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":139,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"6f85ccb7-1cc2-4adc-a178-5505004b4012","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":139,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"9136787e-5e85-4882-bd65-30e0c8d36330","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":139,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"70da77b8-4bc3-4018-80b2-f14992f4ca32","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":139,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"c5009f8d-e0f0-4b05-b3d2-f6f68326ad24","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":139,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"5b49d15b-577f-445b-a5c8-943a12ca5b64","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":139,"box":{"x":69,"y":801,"width":755,"height":11}},{"id":"7dea56ff-696e-4c20-b8d8-648df68488be","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":139,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"91c73613-40b8-4004-987e-7494a1c31882","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":139,"box":{"x":69,"y":831,"width":806,"height":11}},{"id":"415a9add-02d7-4c72-89f3-bc658695044a","block_type":"box","text":"public information about the company (","page_number":139,"box":{"x":70,"y":846,"width":276,"height":11}},{"id":"d459be54-9bae-4ea8-a79d-a9620ccc68c1","block_type":"box","text":"e.g.","page_number":139,"box":{"x":348,"y":847,"width":25,"height":10}},{"id":"aa9eed09-413d-462c-a712-433d3a9ce5f0","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":139,"box":{"x":376,"y":846,"width":499,"height":11}},{"id":"e8aba5ca-e5e9-4cd3-aa45-70309f3d83e2","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":139,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"ca429614-72ff-445f-b2ce-e490224904e7","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":139,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"f7099550-7a98-4b39-b027-32afb202f313","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":139,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"5578365b-ac71-479d-80c9-847a3bf04155","block_type":"box","text":"the investment. 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Cer tain por tfolio management teams within BlackRock may","page_number":140,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"bdf50264-4726-4755-b974-04c8b49a412f","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":140,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"fd89d4c4-f016-40ba-8c03-70ffd5726d34","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":140,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"75a1deec-2728-413b-81b7-0daa89e1115a","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":140,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"8f51b545-5c96-448a-9192-14c4e4e5b437","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":140,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"a1a5f675-c678-4841-876d-af3a6a79f033","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":140,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"49cb3447-e2a6-4943-b465-b17c786cce46","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":140,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"5692a154-3786-45f7-8019-e8ad734150cb","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":140,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"d438f9bf-b702-4354-a876-f0b8930d266a","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":140,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"a9d3ec16-5be1-477b-bcd7-6d2507a634ea","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":140,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"03ab1cf2-d650-48ef-ab1d-44a5fad3feeb","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":140,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"bdc24e19-5c2a-49fb-a14c-3d96ca365696","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":140,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"c5e713c4-63d2-4daa-83d0-7e0d2d5edf36","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":140,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"cbd7f1f1-3be9-438a-baf6-ec6d0d95f3f2","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":140,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"879c29ec-11e3-43a0-ad69-916129fc1c67","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":140,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"752d54ec-b59e-4b34-b8ef-3efbc76d4bca","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":140,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"7f2e61c2-85be-4c73-9d26-bc485097ced6","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":140,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"8228ecf7-fe60-4642-8772-8ef031738663","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":140,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"eeb62f15-e9b9-4907-974d-4111e3626140","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":140,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"8f30dc90-bb17-42fa-ab75-72abb7db2b51","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":140,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"5bc1a5f8-ea5c-41d4-9a3e-46b32ede79d7","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":140,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"72e96dbb-3f66-4937-a85e-8b60acf3d648","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":140,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"c0fdea61-ee56-4f01-9706-d31a0bc89878","block_type":"box","text":"a barrier.","page_number":140,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"254617c9-2ace-4115-b9e2-e80e704886af","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":140,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"a3eb3122-8ff8-4d0e-b593-72da3579c082","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":140,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"0d394640-2adb-4329-b2e7-707ed2638239","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":140,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"9d901563-4c53-40ef-8eff-65ddeb82c1e4","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":140,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"8d53799f-465c-427a-8198-f691656b5076","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":140,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"10950596-a0cd-49a0-afce-f2394418f34d","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":140,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"bb0c09ba-9a97-46f2-827b-e48a49daba8e","block_type":"box","text":"that operate in cer tain industries (","page_number":140,"box":{"x":68,"y":634,"width":244,"height":11}},{"id":"b142ab80-354e-49bf-9cb5-fb9bb1a3c91f","block_type":"box","text":"e.g.","page_number":140,"box":{"x":314,"y":636,"width":25,"height":10}},{"id":"3df963b5-d246-46db-9ced-8fe162b805fc","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":140,"box":{"x":342,"y":634,"width":515,"height":12}},{"id":"3a6e2ee4-fc54-457d-806f-e712ce48b21e","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":140,"box":{"x":69,"y":650,"width":523,"height":11}},{"id":"cd4af4df-36cb-4412-a18c-58bb795cd095","block_type":"box","text":"e.g.","page_number":140,"box":{"x":594,"y":651,"width":25,"height":10}},{"id":"cc290d4c-c576-4ce7-804b-12a2d5f73eac","block_type":"box","text":", with mechanisms such as poison pills","page_number":140,"box":{"x":621,"y":650,"width":280,"height":10}},{"id":"9eb96610-0678-4623-8a82-6df4009f6411","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":140,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"cf40698f-f579-4a0a-b946-66ac6a905f5e","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":140,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"53844a08-2b2f-4313-b315-b6f3c92304d8","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":140,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"1bfaa983-57b6-41b3-8a71-f58905e0d856","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":140,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"80c8eb23-5365-4c97-9915-cc5348044051","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":140,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"36a57945-2aaa-408b-9cf6-585336dba6df","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":140,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"7d5839e6-f753-4b13-b843-4def3dbb6f62","block_type":"box","text":"seek to make indirect investments (","page_number":140,"box":{"x":69,"y":755,"width":255,"height":11}},{"id":"41edfb5a-4f11-41b4-afe6-44b9c07c8e95","block_type":"box","text":"e.g.","page_number":140,"box":{"x":326,"y":757,"width":24,"height":9}},{"id":"2ef3580d-eea6-4d1e-aac1-fb34dfca424f","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":140,"box":{"x":353,"y":755,"width":514,"height":11}},{"id":"5159e4d4-8c6b-4711-a95d-511d75a60082","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":140,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"eeaa3a76-d09a-441e-8eee-1194567421a7","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":140,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"3679fa04-176c-41d9-9253-01cf8dfce51d","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":140,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"78bb7522-1712-4fbf-bd68-92cfd06e611c","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":140,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"6bf0b0ec-f14c-4ab4-9d13-c4988550adc0","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":140,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"426f45a2-daf3-4636-bd33-a5fc8a9fb563","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":140,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"573b7aa9-a95c-41d6-bca4-10cd3a9badca","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":140,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"45e21569-9bd3-4c2b-9e65-fe2f7bfc7a28","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":140,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"04affe84-bac2-476e-bf01-04e776d0b72f","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":140,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"ffb416e5-fda5-43f7-be5a-2f6f7f39420d","block_type":"box","text":"II-96","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4adee678-6191-4f09-a771-5808a80fc4b3","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"23047486-51f9-4a35-9bbf-3b9fd88c5d3f","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":141,"box":{"x":70,"y":45,"width":818,"height":11}},{"id":"3e6875b3-d1d8-4ba3-ac23-a0abf361adc3","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":141,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"7be8b476-7285-4656-8d58-fd9098cb6a1c","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":141,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"403e3468-4ff2-4395-bc0b-be067e94753c","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":141,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"20429664-937a-41f9-a7be-70b65dd72a15","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":141,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"2bc9adfb-7e84-4dd4-8df1-bac65994101e","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":141,"box":{"x":69,"y":120,"width":807,"height":11}},{"id":"68b3057c-abce-49d0-8485-02f625e57e72","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":141,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"39ed1d82-6317-4cb0-b90a-c601c5d3b4a6","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":141,"box":{"x":69,"y":150,"width":765,"height":12}},{"id":"90985360-fbc2-4c1b-965b-e3f69f6eb51b","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":141,"box":{"x":69,"y":166,"width":781,"height":11}},{"id":"87665983-2a60-4424-abde-983be04c3382","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":141,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"01c7f6e3-7dce-4221-a938-974b7baf37ba","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":141,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"fb1048a1-b1fa-4a8b-8ccc-d3a92cc1933c","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":141,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"48074673-32b6-43d2-bf82-466563bf6823","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":141,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"6717a70c-a2ed-427f-9e0e-0ba572ea83a1","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":141,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"7d69eb01-4f88-4d40-a9e0-5b20b45de24e","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":141,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"1c47c28c-82b2-495c-9ccb-cfa6e010d51a","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":141,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"07f96914-5915-4d56-ba57-3e1ea5d5e875","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":141,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"4e524956-f004-443a-bfbf-285ae4aed7c0","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":141,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"44295922-7fc4-430c-a097-7144c77e4875","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":141,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"da280b9b-8863-4cfc-a804-20b7f5c6132c","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":141,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"c852014e-32dc-4457-bb48-f81c1e719e02","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":141,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"312dfc6f-f504-4a24-9594-479bacbffd54","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":141,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"3e867ed2-0b74-4a84-8605-5cbf9a546206","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":141,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"8053e7ff-3367-4a0f-ad66-d3fb496249d6","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":141,"box":{"x":68,"y":400,"width":803,"height":11}},{"id":"6326d903-770c-454d-b36a-1b8e485c8b73","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":141,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"83ea65e3-8d86-4921-9f57-af76633583e4","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":141,"box":{"x":69,"y":430,"width":826,"height":11}},{"id":"b2b597ba-bbd3-4691-9a9b-45152f4aefd5","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":141,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"315c6541-f021-4427-a2ce-df6312635a21","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":141,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"a06cc85c-6166-40c6-be48-3f89b238b4bf","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":141,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"797523df-a226-4182-a436-a6ba1b484b31","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":141,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"e369158b-1b9c-4ecb-a620-139f9cecf6a4","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":141,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"96083d3b-fb0a-4b3a-8afc-656c81c50437","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":141,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"205ae54a-e668-4dfc-b55d-d023ac3ed76c","block_type":"box","text":"strategy with respect to such security or asset.","page_number":141,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"42ff9102-e5e9-42a9-a731-e6d4a5ef9bc7","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":141,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"9692fbaf-5b1e-40b6-bb7a-28c03aade16d","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":141,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"603b6b3d-b6fa-4cc3-b535-6aee08e32ccf","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":141,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"944c22fe-6942-4975-858e-4204a3c32dfc","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":141,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"1a418e61-55cb-4b80-97ed-059675d106df","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":141,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"93367d41-1520-4e2b-9bc4-20a5458be00e","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":141,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"3e273d3d-8cf6-45e2-a909-9fe517eded05","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":141,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"f43a7f2d-0d97-4ac9-acd1-256d340bf48b","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":141,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"ef213ef2-b753-4e4a-96da-33fbda445645","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":141,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"63bdb265-dfdf-4d93-bdf2-40d2f26b3178","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":141,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"605e2820-79d4-41f8-b9e9-6ccde486169c","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":141,"box":{"x":102,"y":733,"width":686,"height":11}},{"id":"2b34d1ca-b1ff-4fba-a7bf-df153f472a3f","block_type":"box","text":"e.g.","page_number":141,"box":{"x":790,"y":734,"width":25,"height":10}},{"id":"9b53c863-264b-4ff6-9fd8-28210fa651f5","block_type":"box","text":", custodians,","page_number":141,"box":{"x":817,"y":733,"width":90,"height":10}},{"id":"2dfbaede-4116-44c2-a6cd-c42c3e9b9205","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":141,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"fafde1f7-d6c2-4f22-bbc9-adfeffc39eb5","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":141,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"dc4476d5-2fee-45d8-97e7-51f5deaac1ec","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":141,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"20d1a0c3-5f76-4c90-bd13-7bca2e42b271","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":141,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"302049cb-df07-4085-be79-dcacbcde2b1c","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":141,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"27b4847d-0f48-4045-a1da-04ec2f7d9bc8","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":141,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"7e82297e-952f-49f6-8df3-e7c1c2385494","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":141,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"7b4c6384-a759-4ff0-8442-f9b6ad862666","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":141,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"00ef1ec9-7ed7-41c3-a7d0-d25f65ad2968","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":141,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"0ee32a27-41d4-4261-9a66-960a522aa073","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":141,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"0172a4dc-633f-42a0-9b92-1881add93760","block_type":"box","text":"II-97","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b51bab9-b2ee-42b1-99b2-a3765f1934c4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9c88952-f3b6-4b2b-a730-33b23f87ed72","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":142,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"346bcced-80a9-4cea-bafb-70e755cd6609","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":142,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"dba66fab-760d-4632-9bca-03e8fa3e22a7","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":142,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"03261551-0716-4f8f-8ce4-2907f3b19599","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":142,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"51f1cf4f-2c52-4faf-a86b-8959114a57b2","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":142,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"5bf288c9-a740-49a3-9609-42c9bc3e2198","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":142,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"421a2c96-20d1-41d5-a1d2-791e6a968241","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":142,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"f549e8d7-90ec-475b-bb16-bab386e33e38","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":142,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"19578214-a050-4c93-9f80-91dabfd6a311","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":142,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"617a6dfb-06d0-41d0-89a5-3ad51e1d1da2","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":142,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"e62b47b5-be4d-482c-9ffd-300dea553afa","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":142,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"6a2e88f9-a7be-468e-aad0-69f54fd840d5","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":142,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"ce3ff8af-90d9-40af-bced-d0150e4c68a8","block_type":"box","text":"provider.","page_number":142,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"8a8c15f6-a743-4b34-91c7-ca78b6332fc7","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":142,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"4874483e-3ae9-4138-8cfa-d0d88376b011","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":142,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"df66f47a-50f9-4ce8-901d-a2e255aa84b9","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":142,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"b0510ccd-e128-42f3-a365-e0ae67a3ee33","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":142,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"69912d3a-7123-4ad3-8328-e384fefe83f1","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":142,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"05ab1338-7d26-47db-86ae-584dc0d89097","block_type":"box","text":"PURCHASE OF SHARES","page_number":142,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"766eef81-44f4-4a27-b914-c1fd0bd3bd32","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":142,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"bb65767d-2a37-482f-8c1e-41f02d191ff6","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":142,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"cd6acce8-6dd7-4315-9078-08297d934185","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":142,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"339c242f-bc51-4f3b-9f0a-7d5efdfcfa8d","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":142,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"ab62a533-c785-4164-af4c-e5c28345a9e4","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":142,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"ca10c2b5-270a-40b5-8046-33888614e16b","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":142,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"3ababe26-84a7-4cfa-8b72-463166f5e795","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":142,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"2aa51d7d-5727-4134-aeba-24c408b83d26","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":142,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"7abffb8b-8fab-4a40-b07e-d96e4d060cdb","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":142,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"42e8669d-a944-423f-9d57-b06cf80afcf2","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":142,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"9f84368b-8666-40dc-88ba-90420ce29bf6","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":142,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"35ab3f3e-927a-4461-b5a4-d8c48847616f","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":142,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"ce01be6a-a779-4358-8fa4-ca67d4edbba9","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":142,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"98dacd24-3d33-4e18-94e8-0d8ad234d462","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":142,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"95e4c2b5-290e-487f-b641-19c7a3ce9053","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":142,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"3ebde3b3-e5d2-4283-af87-b5e8c3060658","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":142,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"bc1a1b85-31f7-4cef-886e-882b46a368ab","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":142,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"912c24ab-d97d-4bf9-95d5-ce87a3dbe172","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":142,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"c75e6bd9-7df8-4f88-b012-7d66b2482e6a","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":142,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"803f68e9-f4fd-4cb4-97e3-2a1f4a1dd3dd","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":142,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"7afed046-904b-47aa-ab98-fefec6abd9d8","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":142,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"cdd7e809-e979-4773-b8cc-9bcb1c25c179","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":142,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"0459e0f7-84ec-4f36-b3d8-613868cf9553","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":142,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"a2d5f7de-0465-4c19-9c8e-081f844d3b7f","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":142,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"b2658739-bf1d-4eff-90f3-b10a78fe75b8","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":142,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"fec808fa-c608-4407-9925-f78c20d6c2e3","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":142,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"959f0da8-8632-48fb-9830-a8a2f29db0e2","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":142,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"914231ae-f3a4-4f41-a8fb-aad39b5a0a92","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":142,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"ff9c8f89-09e5-4cb1-a859-81605d59a621","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":142,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"3047d65a-816b-4a88-abc1-146be7e6be26","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":142,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"9e962f7e-53de-4b88-951b-2e44fec9dfe0","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":142,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"adb30093-4a59-4f57-bc90-323f7ef1e920","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":142,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"19452294-77bb-48cc-9e02-0ce63aacfb06","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":142,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"a9eeaf1f-eb48-413a-9ee6-1b529d06c92b","block_type":"box","text":"investment is $25.","page_number":142,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"c408d561-565b-43e3-9a6d-17cb220ff909","block_type":"box","text":"II-98","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"adee3752-e4f8-43b1-9f40-1fcf9c2c70ef","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f0d556bc-3505-4be0-ba80-dbe74975af33","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":143,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"b0ecd91a-ea64-4e55-8de1-7f8803c169f4","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":143,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"e3f31582-d268-4436-84e6-83e2a1ad26b4","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":143,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"86b8463f-9482-4025-a5a4-52cc4f7c4cab","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":143,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"c1fe8497-6785-4e87-b260-735379225188","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":143,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"3247f529-412b-478a-a6d0-aa4d04d7a240","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":143,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"ccd1f0a2-0cef-4303-9133-5d0f8edf321a","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":143,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"fa2a9583-bc3a-4418-b16c-499e4293d32a","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":143,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"96364fe4-2958-4119-b29c-8126748063b6","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":143,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"f156702c-ec7e-4794-a3d9-cb737b1153b8","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":143,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"92440850-db7a-4e4d-adcb-6c6fd26bf88c","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":143,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"f174a7df-8f8e-4c63-bd6a-dedb6e0c2e79","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":143,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"9793a1b0-86c2-4b4f-9ca1-c323175b3f46","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":143,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"4e7ca74d-f838-4d65-9a99-33d4722d0da4","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":143,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"fbc26aee-0923-43c5-af39-aaec268d945f","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":143,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"2b9c7b1b-c80e-4776-8125-958fff46d390","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":143,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0c5fa0df-d566-4136-8282-1d1769448235","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":143,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"5a50985b-62b9-4ce9-83f9-20c2fcbb1b57","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":143,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"55458c17-88e7-4089-a808-ee6170b1ed3b","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":143,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"20280048-8f57-4c54-95c1-b25a42882663","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":143,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"d39bc32f-851b-4c71-807f-86a4571be1aa","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":143,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"39bc0095-88d7-43ec-9f84-8f801238616b","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":143,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"0436c0b4-73d3-43f3-b5a7-b30a5f37490a","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":143,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"4b273476-7049-41f9-a50d-e5900d32e057","block_type":"box","text":"adviser.","page_number":143,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"a29f4d14-f30d-47fb-9677-36021198b426","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":143,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"a52d5428-e2da-42ef-b94d-3d2e639a5b79","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":143,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"e55675ab-8456-4661-bfbc-e2bccfbaeeb5","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":143,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"71f37d5b-7a43-4f5f-91bd-379022a02f20","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":143,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"2e45fc41-6133-4d67-92db-14b9c7d3fecf","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":143,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"71cbcb30-b4e9-4fbc-a275-cdc97b3909b2","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":143,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"0dd99ed9-d7da-4c12-b571-6402fe8243a8","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":143,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"0e757b8e-35bf-4b62-b5f5-923f7a1aab26","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":143,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"63f660bf-960d-4dd9-b109-4bd6aa2693c9","block_type":"box","text":"also be restricted from making additional investments.","page_number":143,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"dc69f8f7-4107-49dd-a79f-9c94f6ab8a2b","block_type":"box","text":"In-Kind Purchases","page_number":143,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"635042b7-e769-41ad-9df9-8427a182eca9","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":143,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"dfab6ba6-c69d-461a-a814-a1cbe47928b4","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":143,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"b799d9c9-2780-4ca5-aeb9-4d518da56c49","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":143,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"eacc708d-1728-4375-970e-864a5fe0e862","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":143,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"25c2f6ec-8978-4ccb-98a0-a69ea8f0b6a5","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":143,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"52da6139-728a-41d6-973f-1f04e48203af","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":143,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"3fd22bee-cfcf-4e7f-8e4e-79c8e6ca4c1d","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":143,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"5a8411a0-f828-4ec9-a4b6-6f75fa33cddf","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":143,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"7f612500-dcfa-447c-85a2-d1bbbb1cc92a","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":143,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"d368cd21-9cb3-41fe-9c48-435538253917","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":143,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"54ed8a39-c508-4a31-a9d8-d92236a11bd0","block_type":"box","text":"has settled.","page_number":143,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"e29eb645-7f54-40dd-b7ee-05b64581f2e7","block_type":"box","text":"Institutional Shares","page_number":143,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"07bf83c7-ebb4-49aa-be8c-1b5fec7b949b","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":143,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"6cb191c3-0ae1-4d77-9a14-fbd4947beccf","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":143,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"673391e0-00b2-4dad-92c3-9a3dc13ce804","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":143,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"edd6805e-e401-4c4a-992d-f357099d44d6","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":143,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"f0dd7b1d-7efd-434b-8edd-fff913141a6f","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":143,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"c2c74308-cda0-479c-ae97-27186116234e","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":143,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"461313a7-4dea-4d97-9b31-4b93989c3d94","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":143,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"786d1b55-1bd0-4674-8984-a50db68cf0bb","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":143,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"35a5a26d-5f60-4166-92b9-143d36487ce6","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":143,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"2564dda8-1f2f-48fa-b50d-a9f55a708e41","block_type":"box","text":"II-99","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c9c1b9d7-b9a8-4f2f-968e-cca297fa80f6","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48190cec-b98b-409b-9c63-e3f7907d6a32","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":144,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"41d1de1f-42e2-4724-9715-0be4f19379f0","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":144,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"895762ce-3076-46d1-ac7b-8d4b5a6ec202","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":144,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"f8d8234c-e1a2-4374-899f-29a35ff8e789","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":144,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"427e9fb1-69cc-4124-b312-11de151f3ecc","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":144,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"2c4ca97d-6e6c-4d4e-8c44-81787ce2a2b4","block_type":"box","text":"these fees and conditions.","page_number":144,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"3c1ad137-9787-4f04-b937-2f5da0a6bbf9","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":144,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"5f65a848-9f8f-490e-b5c3-f3434407295a","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":144,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"948741fc-03d9-47cc-ae59-b49516883122","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":144,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"8120cba7-6d06-42e2-8269-5a773d306ad1","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":144,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"e72c9a6c-2d34-48f3-a126-ff8246c11706","block_type":"box","text":"incurred by the Fund.","page_number":144,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"2e858ff1-0cb7-4da1-9b9c-953b30dfd274","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":144,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"2345f0c7-555a-4ff8-b7a1-84e7fb80ea1e","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":144,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"f8e26239-75e6-4128-bcc8-310032fed0a7","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":144,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"6570d3a9-ad09-4ae7-af8b-cfc64c525aab","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":144,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"e9f7b32e-3372-4576-91e8-f726fc839383","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":144,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"7ba2723a-e9e6-46b3-bc49-10d7bf38f4af","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":144,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"76323578-0839-4212-8ac6-eba06ffcebc1","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":144,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"20fe6e88-74c8-44cb-9ba6-49f8a3a0ae27","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":144,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"53cbfa78-30c5-4974-b950-b4761fb94a91","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":144,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"b9e4c15d-06ea-4ff1-8a1a-075b98b5645e","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":144,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"a8fe833c-9cbc-410e-91ba-286c02e0b7ee","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":144,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"214d3447-0393-4210-a28a-1c856d736088","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":144,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"c460b35f-da10-4ce8-8664-3a918dd9ed05","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":144,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"56ed3014-5c5e-4bff-9c6b-ab5314bbcc71","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":144,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"ccbdcc21-6bfe-48b6-bc62-3a7e32390959","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":144,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"052c6619-3879-4774-9381-c7bce1f2df1e","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":144,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"f4310144-518a-40a3-b6c8-119be2838361","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":144,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"ddf6af06-5244-4dc0-a2c9-08b3ddae4fd9","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":144,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"f31caa86-2395-425c-9a74-44d3a7b841a5","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":144,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"c68303fd-1e09-4379-bb9c-4ed25974a246","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":144,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"1df75128-6f3d-4171-9ee4-f0ff6e0001db","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":144,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"250cfff1-1e12-49ce-94cb-d1d390b6e442","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":144,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"4354c20c-1b08-41d9-972d-ec0cbdc8019b","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":144,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"13ac5b45-b90d-485c-b48a-ac992f1e3853","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":144,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"4ae6e773-2758-4da9-b653-96a7ac7ac81c","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":144,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"79fb3114-de59-475b-9557-a3db319976ee","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":144,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"84ab4077-cac7-47e5-bf51-09848f72fbc1","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":144,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"fec81c58-2e8c-4415-8639-b70dde57c3ae","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":144,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"a9562b91-208a-4f5d-b02b-065c0acd893f","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":144,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"37026b9f-746a-47e4-b05f-c1ae09e8e492","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":144,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"305c75fb-dd12-49c3-8071-67f615251951","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":144,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"56bb644b-3c4e-4614-b173-c70a5dc61661","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":144,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"ecfe48d4-1009-4ee9-a0e3-9ce213315ac3","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":144,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"1011794a-5d4b-4335-b541-b293a90debd5","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":144,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"d8fb3de4-96fa-4560-9658-5eb6e612b691","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":144,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"1b6e1add-bed5-4865-bba5-b772d074f25d","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":144,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"a9b79adf-5dd2-43d2-9d94-150d13a13161","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":144,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"f7a6dc50-e6f8-4250-a154-a2dfe5962d9a","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":144,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"4b465cd8-edf3-4498-a4ed-6997275761b7","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":144,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"c45f8d20-710f-4a3f-b0bd-ac754566375b","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":144,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"a8104077-f197-4b93-b11c-c9fddb16ff72","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":144,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"698c644f-5b59-47be-88f1-b945fe84d6be","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":144,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"b77a854f-2600-4459-9135-7150da2d11a3","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":144,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"8eede683-aefd-44ef-b8fb-7b5b50694f41","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":144,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"69ea9c2d-74ed-4f57-9775-375840453862","block_type":"box","text":"II-100","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ca05d5a5-c722-43a1-95dd-6351dc14b819","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d06a0e6-ca3b-403d-9333-db037f402e62","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":145,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"f47c96c2-f83a-41d6-ae35-2d4a27edfb74","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":145,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"31c3583f-3c5b-4479-ba3e-3761e3e8578d","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":145,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"3c13e0d3-84a6-4943-9799-fffb5fcca599","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":145,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"b2cad602-028d-48f2-9445-6784d001f2c7","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":145,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"3f1e8313-6244-4f21-885e-5fe1cdc5281a","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":145,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"8c7361c8-4184-4539-a4da-01555e3ce8ec","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":145,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"98850751-86e5-4fe5-94ad-a7f81b55e195","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":145,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"7fe93521-3fad-4aa0-b46b-b30258a1bd70","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":145,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"a1506575-6ec2-4694-9e6c-ee5dbfaf5c04","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":145,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"446d8c5e-889f-4e8e-8bd9-2dd36be13db9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":145,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"e8d21cfd-57c3-455b-b43d-2fb3e8d086cc","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":145,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"0064c7fe-e794-48e3-9c40-99d7d2d8a238","block_type":"box","text":"periods indicated.","page_number":145,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"296cf669-b9e5-437e-8182-27270edb440e","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":145,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"f6715ccd-6e31-4f03-b943-c0c809e26830","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":145,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"e2a02121-ed0a-4a08-ab83-38c307d2a51b","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":145,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"bf10beb3-fc3d-4f18-a6f9-49dbcc2edda6","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":145,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"c4b9a428-8d28-4699-ae18-4861c1c17fa5","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":145,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"44e9d538-5d74-4b36-b3f1-878e46e589b5","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":145,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"249d8278-1971-4f86-a326-b23e73b3f999","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":145,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"3dfad4b7-c3af-492e-b4ab-539b2018631b","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":145,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"72982dab-9f69-420a-b7bc-53f5633c7c6f","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":145,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"c865e303-f3b9-48dd-a0cb-5843e6814f68","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":145,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"9596ac0c-9f14-45f4-b712-15e66e1943c5","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":145,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"2f46b651-1c2c-4d5f-8556-903f8a295bc8","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":145,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"1836be94-7e80-4462-b7f9-0e120acdd803","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":145,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"4fdf3bed-c011-4e9b-bec5-a1c9825ea29d","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":145,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"34c12b42-aba9-421c-bc83-cc1ad71a04f8","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":145,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"cc9d2e97-670b-467e-b8da-c2697ba5a128","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":145,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"84e10ef1-5326-49e6-b0a6-beef875ba043","block_type":"box","text":"Reduced Initial Sales Charges","page_number":145,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"0830b76c-c6b2-49eb-92ce-a946fa7c836d","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":145,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"f8cc6ba9-dbe4-4fef-a574-3f2746bb1ae1","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":145,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"2f151b18-21cd-4bd6-8e95-aae0517e91c0","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":145,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"d2d11599-c499-4bd3-88da-2474ba1f8392","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":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"33ad3871-1aec-46a3-b1bb-457432450c45","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":145,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"7ceca4a8-4ba1-4e16-9410-5987d8e88ec7","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":145,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"5008937d-0a9b-421c-b999-bc7ea3b1f138","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":145,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"9f93cfd9-d8e9-4773-be86-06ec4aa7a611","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"03119290-dd21-4f7a-bd83-065dc063dd82","block_type":"box","text":"Reinvested Dividends.","page_number":145,"box":{"x":102,"y":703,"width":156,"height":8}},{"id":"f6f0f17e-2044-4e9d-883e-37a7737cea52","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":145,"box":{"x":265,"y":702,"width":566,"height":12}},{"id":"9b1a58fb-3638-4cfa-a6aa-a883c0642117","block_type":"box","text":"reinvestment of dividends.","page_number":145,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"db16bdc8-5826-4b7f-ac18-9a1353399e90","block_type":"box","text":"Right of Accumulation.","page_number":145,"box":{"x":102,"y":740,"width":158,"height":11}},{"id":"728c1288-51b5-459e-89ca-81e77a659132","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":145,"box":{"x":267,"y":740,"width":574,"height":11}},{"id":"c0a60f67-eed1-45df-a532-ecf5a871e35a","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":145,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"adf9c20c-53e3-4fd8-8451-e7476b933842","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":145,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"d68bf41f-d612-4b69-8161-6f1e9751d20e","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":145,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"30e2d5c9-5739-47f6-86d5-7fcf44593336","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":145,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"f692e822-8e2a-4284-ae52-198f92151105","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":145,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"d296cc87-462c-479f-9238-8b873e513e45","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":145,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"9072a5e9-6a5b-41f9-a857-30fbf2af5602","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":145,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"9b30826f-d479-448e-b2e3-a977940d91fa","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":145,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"a3108921-76f4-47a3-baea-2484188c37c1","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":145,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"386953c9-c539-4014-9447-bc38c2319f2f","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":145,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"1a83b928-1ea5-4786-a768-c4237f62a538","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":145,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"ffca3331-2719-4508-8411-037297d78829","block_type":"box","text":"II-101","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b244cadc-170b-454f-90ab-f2b2057e88b5","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7b49520-e20c-42e7-9804-757b6547e2bd","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":146,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"79b9ead3-ee7c-4e3b-96a7-8f62e8aae34b","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":146,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"fecdd4d8-99d9-4f2c-8cb7-f81b529716ae","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":146,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"947f7ef6-58d8-4718-b169-668e71c81618","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":146,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"a7cacd19-e965-42ba-8cb1-d415702e0a22","block_type":"box","text":"Letter of Intent.","page_number":146,"box":{"x":102,"y":113,"width":109,"height":9}},{"id":"b6b23d0d-3e87-4f78-bb6b-f4dac2b0494d","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":146,"box":{"x":217,"y":113,"width":681,"height":11}},{"id":"66ec2692-8b62-4dc2-92df-c249c16793e7","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":146,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"d3f4773e-8b90-4fa1-9628-f3aa6534d605","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":146,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"a1122ec2-f96b-4ff6-8c44-08f8c6d07900","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":146,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"1bdbefed-7d42-4801-9c67-290a57ffb277","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":146,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"05294881-6adb-4407-9bb9-f20aea83c602","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":146,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"986d1c44-7c42-4705-9aae-82b072d3941b","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":146,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"368db3db-4423-4b80-8d78-1fb1dd45609b","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":146,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"6013aa47-c042-4750-850b-c53de89b0280","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":146,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"5603262f-cecc-4623-89cf-727f443b13fb","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":146,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"b7afb96c-7792-48ce-b5a7-f3f643bdbd42","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":146,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"3f76eca7-34dd-42e5-8c7b-6e6e40887f3b","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":146,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"3b027059-90ed-4b2f-b0b1-b2bce8b921b2","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":146,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"81d63fa1-a53f-4618-8932-cb67396cb330","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":146,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"481af768-d09b-4ba4-89c5-173f0fda8bf3","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":146,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"c4c837de-0fa8-42f7-9358-af09e92e5af4","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":146,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"dcc70ab8-497c-4db2-b49b-b20989fb43be","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":146,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"443b012f-1408-49c5-9e46-196e11bad3ad","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":146,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"52e11373-72ac-48b5-affa-3982f3d98f56","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":146,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"d1d212f7-f47d-4ab4-b155-17ecbe30f626","block_type":"box","text":"Placement Fees.","page_number":146,"box":{"x":102,"y":408,"width":116,"height":8}},{"id":"8713fd5a-68c3-48ae-9113-678f41dad7b7","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":146,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"bda19f29-7295-4cb3-8d06-e5df4d08fa8a","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":146,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"49f4d2f0-f4e0-4af3-ac3f-9b32321a2bbe","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":146,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"e76bf136-2f75-4073-bd08-27874cb47b33","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"fd213c5c-b6ce-4310-99d0-07136665709c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":146,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"eaea7734-7b65-4ae6-aa28-62a8f4d8499e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"15ff14c2-22f1-43e1-b7f2-65a1c24ae2ab","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"9c08caa6-7a2c-493e-b796-e8ea2810d61f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"c78b6260-8766-4c15-bdac-b2fe5ab57088","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"104d0b4c-36db-45f3-94fe-d8a8bf547e9e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":146,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"ad03a417-fcff-41be-9786-d1f41577cbab","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":146,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"c6b318c8-3c3a-4361-8b81-769c6636bbac","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":146,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"1e13fad0-26a5-4ec9-800e-046b3b2bcc2a","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":146,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"27dff794-6c14-4d76-97cf-2702a0c3e68c","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"696878f7-06e6-4f6a-9db0-5e5ad5baec2a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":146,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"451bb52e-7dfb-4151-8366-df4c4c720bad","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"82912635-d284-439b-a385-f45b999cce6f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"c169ac28-8e9b-4a61-8233-6ef502b1c637","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"5b2e3783-216a-429a-9959-b4ab98e53d84","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"f2ffdc23-fb65-43f4-8f35-93eeb9992779","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":146,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"b34dac80-0de5-4ec4-83b4-97cc7ab9052f","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":146,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"2be7b8dc-c836-45ec-85f7-424ddc1ce042","block_type":"box","text":"SM","page_number":146,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"52d8f02e-5d5c-4fc2-bbec-b698ca2513ac","block_type":"box","text":",","page_number":146,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"7e1edba2-5af7-449c-af3b-bfa8b649a592","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":146,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"21293007-4bb6-4679-9dd2-6e5d570dbfa5","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":146,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"499bafe3-b8e6-45ad-9484-148ba4f8e6d4","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":146,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"dfe8b5fd-1bef-4112-b068-953cd7c54f09","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"686051f4-acc0-4356-8d02-859cfbcacac1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":146,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"71aa1547-025e-4de0-82ae-d7083ec1df3b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"9a0ea7dd-f1c3-44d6-b892-4e595a2bde5f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"c64dea9c-7dbf-439d-96d4-480ef574d7e7","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"d73ab0c2-877c-4553-a3bc-79dff930a0c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"eddd4b60-001a-4b1f-bf62-99a3a30168ec","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":146,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"da1ec33b-5fdf-49fa-9806-9992c70be9ec","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":146,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"b296c678-44db-4284-be9b-309a957c2139","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"44945f2a-d814-48e3-ac88-0a8b98328e99","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":146,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"fb733430-f365-40f6-8a0c-56265a1fc724","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"780ec1f7-f410-4e71-97e0-3cd0c6d062f6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":146,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"2e353b22-4268-4f67-a6e0-ace0bb4ddaaf","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":146,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"1860e129-7bfa-4426-91c5-b7af997155ae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":146,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"b8e8ee63-d524-4a00-8322-c06e23dcf379","block_type":"box","text":"II-102","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cb6a65a5-fafc-4b5d-87f5-89c8aab54244","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9d6df369-ae04-43c0-8256-3ad419a21fab","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":147,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"d43c786f-4729-4f73-b18f-a40a298291cc","block_type":"box","text":"may be up to the following amounts:","page_number":147,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"9205187c-dc5d-4da1-8eaf-1585a3d3d0c3","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"00d82fd5-5229-46c4-be3a-9a10cee92dc9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"f011d645-995d-44c3-9ee4-71f869dd92bf","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"aacec826-75c2-4402-8e85-bc2368409ecf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"ae9eb5ca-0d38-4495-a17a-ec7a3044a807","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"076de037-31fb-42ce-bfc0-474b9f184f80","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":147,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"44a1a891-79e9-4c66-b6af-b8b2ed8152ef","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":147,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"5aea71e1-8a4f-48ff-9605-2f06fb2e9081","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"405c8325-b54d-4fcd-9935-038ad08cd7c1","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"a0b90481-178f-4636-8c6f-d8b8fd79a6fb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":147,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"34518e94-d70c-42aa-b886-5ea7419670ca","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"21907cf3-7acc-41e2-9893-2887883eaf4a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":147,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"82d19bff-b6e9-4742-8a67-c72458c9cce7","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"b5a44b4f-4ccd-4b60-a1cb-7e12cd46dede","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":147,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"809b8c04-d750-4ca5-89fd-84ffb3329f4d","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":147,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"8ce93b7d-10c3-40da-9d42-adb24f1d012b","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":147,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"f3d9a423-eff6-4caa-95ae-cd4176ad4dbb","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"c64920c6-175d-46bf-a982-6c4717cc52af","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"09f69b56-98c3-4b26-abc7-880ef976f0d4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":147,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"269c941c-5121-4e85-8510-40baa7f72378","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"e838bca6-afaf-4bdf-bf7b-5fa6eb93030f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"7b42eb9f-67ca-4a55-8dd3-bf7f4fe06c82","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"86e72eab-935c-4691-a2fe-3ec4a6bedd17","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"e0e9ca5a-0d87-4f9f-9a46-cd616e1d6547","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":147,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"a8241eb5-9049-4835-bcdf-3a7a16692535","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":147,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"be5c4826-f97e-48c9-ae3d-4dbdef1f672e","block_type":"box","text":"$250,000 and above . . . .","page_number":147,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"75ebf6c4-2319-4b42-a3e4-372ebde4ad2f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"4c68972f-fe04-4cad-9f74-b2c4068bead2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":147,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"887fcab7-f585-4581-a8e4-96369af6a1d1","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":147,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"63e4f8d0-0cb8-45f9-9e1a-a2e5c19d535c","block_type":"box","text":"the following amounts:","page_number":147,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"6eeda474-3da3-4521-84f9-ef0eec1ad1ed","block_type":"box","text":"$100,000 and above . . . .","page_number":147,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"922d97b9-acaa-4abe-991b-3efb0be53cc5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"a9d07954-2e17-4e94-a054-014c2d6025c7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":147,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"ffa2783d-303b-400a-ad85-c3da674dc732","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":147,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"14fcb5e1-10dc-4871-927a-424bea49de7b","block_type":"box","text":"$250,000 and above . . . .","page_number":147,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"1cc23fe0-5873-47aa-a970-452ef7eba968","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"0f7e74eb-282e-477b-ad2e-1f37245b7e67","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":147,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"33c1d10d-28f6-4d8d-b494-eaa5d636c496","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":147,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"62429c49-95a6-4610-994a-ddbbb9ff2021","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":147,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"3f0529ad-358d-47af-bd7d-f1178b3f55d6","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":147,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"2ebe9e1e-14e1-49c6-877b-eef61b53eb2e","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":147,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"4ffe9637-5d86-49f3-b2b3-09a88367e0f4","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"16fd12d5-715d-42c9-bcef-36d284548f1d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":147,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"ab873b0b-9f56-4516-a64c-c88c84e53e44","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"94c23fc2-9b17-4e1c-86a5-dc97a8583c72","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"77a9a802-a058-4a68-a1fd-cbd41750603b","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"0aa74fc1-4733-47c5-a777-b6e798de5756","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"f272aad8-56a0-4853-b8f7-b566aa74cd5f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":147,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"21fc0155-f938-4cb7-975a-46afcab85b11","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":147,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"097e6ddd-7245-4428-b95f-2ed454d57638","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":147,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"e6bda475-3812-4c7a-b39f-4592bf8e3230","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":147,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"6f0f902d-3df1-4881-8092-8d944edd2bf5","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"c13c5d95-4484-4dc1-97c8-872fea931407","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":147,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"78e662e9-a72d-4c36-812b-801b35d1ff93","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"36331524-2e92-47a4-8054-e8dbef65cc04","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":147,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"6f6eca15-86c0-4839-9b66-f3c3d5fb9f9a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":147,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"83f0db8d-5b3f-4695-8db4-021b815a1854","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":147,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"675364fd-ba33-4836-a778-60e4a2f80647","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":147,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"34e389e4-71f3-472a-bee0-b85d65903016","block_type":"box","text":"®","page_number":147,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"b8aa5afd-0e76-462f-859e-9c6f0657aa87","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":147,"box":{"x":513,"y":836,"width":264,"height":10}},{"id":"43c5e2ec-263f-4185-ae0c-6815c2292add","block_type":"box","text":"®","page_number":147,"box":{"x":778,"y":836,"width":6,"height":5}},{"id":"469533e1-04bb-439c-908f-8c74823429c5","block_type":"box","text":"Index 2035","page_number":147,"box":{"x":791,"y":836,"width":79,"height":9}},{"id":"319032bf-abf8-4471-a734-87d44615bc25","block_type":"box","text":"Fund, BlackRock LifePath","page_number":147,"box":{"x":70,"y":851,"width":177,"height":10}},{"id":"30f00786-477e-43fe-b174-b6531aa7a158","block_type":"box","text":"®","page_number":147,"box":{"x":249,"y":851,"width":6,"height":5}},{"id":"dc9ec9e8-3fad-49b9-9c7a-aefb5ca3fcfa","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":147,"box":{"x":261,"y":851,"width":265,"height":10}},{"id":"bdb0dffa-e24c-4c07-8be2-11c8e4e44a61","block_type":"box","text":"®","page_number":147,"box":{"x":527,"y":851,"width":6,"height":5}},{"id":"0b0ce282-66ac-448d-ab31-b2b5ccd352af","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":147,"box":{"x":539,"y":851,"width":265,"height":10}},{"id":"62e783ae-c5fb-4bb8-90e0-64410785ea9d","block_type":"box","text":"®","page_number":147,"box":{"x":805,"y":851,"width":6,"height":5}},{"id":"744cf305-1c36-44d7-9c40-c3b66001caff","block_type":"box","text":"Index 2050","page_number":147,"box":{"x":817,"y":851,"width":80,"height":9}},{"id":"1ac69a2a-6d80-499d-a7a1-4bd63637ffc7","block_type":"box","text":"Fund, BlackRock LifePath","page_number":147,"box":{"x":70,"y":866,"width":177,"height":11}},{"id":"3c0c4eca-6552-4823-961d-81559e443cff","block_type":"box","text":"®","page_number":147,"box":{"x":248,"y":866,"width":6,"height":5}},{"id":"27148e60-0117-4142-9c62-8ab2149aa44e","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":147,"box":{"x":261,"y":866,"width":263,"height":11}},{"id":"ff57e813-b77b-4236-82ff-cde89dd76c1a","block_type":"box","text":"®","page_number":147,"box":{"x":526,"y":866,"width":6,"height":5}},{"id":"2244434e-73f6-47d0-b24a-70fb7a0182a0","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":147,"box":{"x":538,"y":866,"width":264,"height":11}},{"id":"188d5765-14b7-4835-9d4a-40f1059ed6d7","block_type":"box","text":"®","page_number":147,"box":{"x":803,"y":866,"width":6,"height":5}},{"id":"b4c12600-a0a3-4224-8223-24122df5ad96","block_type":"box","text":"Index 2065","page_number":147,"box":{"x":815,"y":866,"width":80,"height":9}},{"id":"8a46c31f-29eb-4b39-8dd9-99dd9894c604","block_type":"box","text":"II-103","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"35c5921c-1abd-432e-b6ee-eb20bed91ec4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"be1f4a95-ac65-4c75-aeca-1178c1d765da","block_type":"box","text":"Fund, BlackRock LifePath","page_number":148,"box":{"x":70,"y":45,"width":177,"height":10}},{"id":"1db46955-e2a0-44aa-a0e9-aeba4517d4ee","block_type":"box","text":"®","page_number":148,"box":{"x":248,"y":45,"width":6,"height":4}},{"id":"e252d673-594f-4490-8740-9e8fcc66ce9d","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":148,"box":{"x":261,"y":45,"width":290,"height":9}},{"id":"b55cad25-e6a3-4074-b916-fb179dc99a19","block_type":"box","text":"®","page_number":148,"box":{"x":552,"y":45,"width":6,"height":4}},{"id":"e77df9d1-b15d-4cd1-af72-3322ddab8260","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":148,"box":{"x":564,"y":45,"width":324,"height":10}},{"id":"ae7fed6c-b8b7-4604-8a09-00aa25c2e1b3","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":148,"box":{"x":68,"y":60,"width":401,"height":11}},{"id":"308a058c-4680-41de-a6c9-4b9c6f6f397b","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":148,"box":{"x":167,"y":87,"width":206,"height":11}},{"id":"345cba6c-66dc-447e-92f8-aca1a06fea1e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":148,"box":{"x":380,"y":88,"width":443,"height":8}},{"id":"cf6950d9-3292-48d7-86cc-73ce7b72c864","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":148,"box":{"x":101,"y":111,"width":657,"height":11}},{"id":"6ef4e8d2-bef5-45fe-83c4-be03b34e65ee","block_type":"box","text":"SM","page_number":148,"box":{"x":760,"y":112,"width":10,"height":4}},{"id":"6081b164-4991-4c6d-82bd-622764692079","block_type":"box","text":", the placement","page_number":148,"box":{"x":773,"y":112,"width":110,"height":10}},{"id":"cf2de403-7343-4326-8936-a7e0f6e9841d","block_type":"box","text":"fees may be up to the following amounts:","page_number":148,"box":{"x":68,"y":126,"width":294,"height":12}},{"id":"36338e5d-93f1-460f-8ece-eae2412cdc26","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":148,"box":{"x":167,"y":154,"width":206,"height":11}},{"id":"bada092f-3fab-4d9c-972e-33b32ac42ac5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":380,"y":154,"width":443,"height":9}},{"id":"eb5ab9be-bec7-4597-95c5-bfe1bc65b98e","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":148,"box":{"x":101,"y":178,"width":787,"height":11}},{"id":"56652e15-3083-408d-b880-85f703dd481b","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":148,"box":{"x":70,"y":193,"width":808,"height":11}},{"id":"7caa754d-f4d5-4429-8170-f711bbb25678","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":148,"box":{"x":70,"y":208,"width":393,"height":12}},{"id":"ae1768f8-ad4e-48c3-a7ae-fdeb0e0a45ef","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":148,"box":{"x":102,"y":231,"width":740,"height":11}},{"id":"6e1150e3-3d38-4f17-9ab2-0b5609a222ff","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":148,"box":{"x":69,"y":246,"width":823,"height":11}},{"id":"aa489976-cd25-4b2f-ab98-999f9580466b","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":148,"box":{"x":68,"y":261,"width":780,"height":11}},{"id":"6ef42787-59df-4911-98fe-24e19ba5ac52","block_type":"box","text":"$1 million).","page_number":148,"box":{"x":69,"y":276,"width":79,"height":11}},{"id":"fc1d6b1d-d054-41b4-a4de-7ec95d7a0049","block_type":"box","text":"Other.","page_number":148,"box":{"x":102,"y":299,"width":41,"height":9}},{"id":"432d2059-75db-4118-9fc4-cefdee1e11a2","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":148,"box":{"x":149,"y":299,"width":698,"height":11}},{"id":"879d0a62-273d-45e2-aeca-0bae20e77b90","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":148,"box":{"x":69,"y":314,"width":839,"height":11}},{"id":"a12bddf4-0aeb-4387-b35e-e267c0d425d6","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":148,"box":{"x":69,"y":329,"width":790,"height":12}},{"id":"4bc4ec6a-cc92-4aa7-a67c-04b3ac38ce31","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":148,"box":{"x":69,"y":344,"width":825,"height":11}},{"id":"2c5c7920-2f35-4bcb-96ed-8c5e482e5d4e","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":148,"box":{"x":68,"y":360,"width":773,"height":11}},{"id":"2994bccb-6580-41ee-837d-de4289520dbb","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":148,"box":{"x":70,"y":375,"width":838,"height":11}},{"id":"b0ebca22-cb5f-482b-9817-ee0b37c2e215","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":148,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"b93bd853-a311-4995-b670-e1c0cd4ebb0c","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":148,"box":{"x":69,"y":405,"width":836,"height":11}},{"id":"b9b54a27-5331-4de3-afb5-497133701026","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":148,"box":{"x":69,"y":420,"width":793,"height":11}},{"id":"ec4c09e2-4596-405a-a5a4-16d84f2ed923","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":148,"box":{"x":69,"y":435,"width":811,"height":11}},{"id":"02ed1d2d-0402-4e6a-89c8-b42528a9986e","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":148,"box":{"x":68,"y":450,"width":827,"height":12}},{"id":"dca9c4f0-1a84-42c4-a113-499979d85ef9","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":148,"box":{"x":70,"y":465,"width":782,"height":12}},{"id":"811eadc1-5a6a-4508-bf15-b0f25d20f3f1","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":148,"box":{"x":69,"y":481,"width":830,"height":11}},{"id":"bec95d64-1dc6-433a-b435-b1f6d8514126","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":148,"box":{"x":69,"y":496,"width":815,"height":11}},{"id":"edd3ea0e-66cc-4220-9174-501278b7fcd9","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":148,"box":{"x":70,"y":511,"width":799,"height":11}},{"id":"0743312c-b907-49e9-96b9-9c194d22a19d","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":148,"box":{"x":69,"y":526,"width":752,"height":11}},{"id":"c38e25d0-2173-406a-ae8c-dfbb2b59c0ed","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":148,"box":{"x":70,"y":541,"width":836,"height":11}},{"id":"42969473-65eb-466a-b237-96207a4e36dd","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":148,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"cdd940c2-9af2-4665-82b9-c14471f912f5","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":148,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"96077784-2ced-4c61-8ec2-bf078eb98383","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":148,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"779d6fd6-5829-4f1c-913f-d4907b86d5eb","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":148,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"fb2ca551-206d-48ff-b6fe-d0c34eecf873","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":148,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"b83cd142-5536-4457-bc9c-bb4fc070cfcf","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":148,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"d1e1b5a9-ed03-40bf-9ead-ac6af425a900","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":148,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"93ab599a-4799-478c-9359-eb6fa9a6e75a","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":148,"box":{"x":70,"y":662,"width":808,"height":11}},{"id":"6a4feb08-0693-4a8b-a57e-f12940e69a7e","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":148,"box":{"x":69,"y":677,"width":837,"height":11}},{"id":"6c4c3b7c-8725-4412-bb3d-ceef7e62f082","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":148,"box":{"x":70,"y":692,"width":820,"height":11}},{"id":"2d3ae00f-f1fc-414c-9efd-dc9c25c9df55","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":148,"box":{"x":69,"y":707,"width":813,"height":12}},{"id":"07142462-6cc1-483c-b806-41b64fd6b1ce","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":148,"box":{"x":70,"y":723,"width":831,"height":11}},{"id":"2791bca4-5a85-487b-a08e-0b9f867ca77c","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":148,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"e725e2a5-a124-47bd-80ca-0e89da86544c","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":148,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"ee0553e0-72b6-4747-ba2a-09858a7f8241","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":148,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"0e8e8bfa-edaa-47cd-8b1d-200f4d2b9d82","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":148,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"7bb84dcc-5a6e-48b8-8a7f-7aace03575d6","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":148,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"dff20186-c6ad-4683-9ebe-1e6712384a01","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":148,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"69e9bc26-60ad-4ce2-8d32-ece55f56661e","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":148,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"b4df8c0f-88d1-446a-8b7c-ae1fc6807c7c","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":148,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"9b8d174c-9ad2-4a76-8649-f7c04d484fb5","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":148,"box":{"x":68,"y":866,"width":835,"height":11}},{"id":"d9adab3b-c583-4913-afa5-c7e56197db94","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":148,"box":{"x":69,"y":881,"width":813,"height":11}},{"id":"0993745a-0e06-4d6b-af6a-7100e4dbf050","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":148,"box":{"x":70,"y":896,"width":792,"height":11}},{"id":"f8ed5690-e243-42b0-b407-77ab456edd16","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":148,"box":{"x":70,"y":911,"width":813,"height":12}},{"id":"5ce9e5f1-74ae-40e9-9202-b5057c7cde41","block_type":"box","text":"II-104","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a9322c79-73fe-403d-b4cc-51c5b73bd274","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a619c50-359c-45fb-bcc9-9d8523043e0c","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":149,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"78e2f11f-e13d-4a63-aad1-40792adc8f0a","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":149,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"e44afe9d-9f10-4318-bd5c-d5f127a1f54e","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":149,"box":{"x":69,"y":75,"width":736,"height":11}},{"id":"7ab184fa-2860-46ed-917c-b81aa14bd154","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":149,"box":{"x":101,"y":98,"width":763,"height":11}},{"id":"234565b1-0a96-42b1-9dc4-130adfd3678a","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":149,"box":{"x":70,"y":113,"width":782,"height":11}},{"id":"8241c863-82fc-4343-8270-cb0566705558","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":149,"box":{"x":70,"y":128,"width":832,"height":11}},{"id":"3b319c37-ae30-495f-a777-e4399133ce4d","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":149,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"39d72070-97e5-49a8-898f-d5c651c7647f","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":149,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"5409f682-b925-408e-9dd4-94fc45c49e5d","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":149,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"9ba253ac-4b2a-4a10-99bd-47dd29ac9b0e","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":149,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"af281e0e-aa62-49e3-a3d0-65087fb87278","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":149,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"117475a1-73fc-43c1-bae0-e97005139fc7","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":149,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"e6382d6a-d1b3-453e-beda-01e9581c3f64","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":149,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"484cd118-a0cf-4416-9aba-b6f135e97034","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":149,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"1263a370-8245-42ae-aa20-f19e018b6112","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":149,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"10772eda-0fa1-4c5a-8d4e-bd703a6e2aeb","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":149,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"b72e1592-6ed2-4249-b9e1-ca04cb3512e3","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":149,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"f8a095a0-b279-433f-81dd-3c2333371315","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":149,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"1b63c59b-6b45-4a97-a16d-29d07d92ee92","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":149,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"8838d84d-57a8-4cbc-ba40-273c6f57350a","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":149,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"42716b68-b222-4b92-88be-6bf178475fc9","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":149,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"95ee96d5-cc2e-4bf2-8e66-710b967e9342","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":149,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"f7aa7821-3fec-497f-920d-4d4e941289be","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":149,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"2e095fab-9900-4d38-82b6-9d96c2755d08","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":149,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"f2768302-318e-4220-b6a0-bda258370b82","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":149,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"0d2544dc-07e0-48b1-9e7a-01b64d8fa782","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":149,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"c522882e-661d-4721-9c41-6293866131ad","block_type":"box","text":"the absolute discretion of a Fund.","page_number":149,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"bf7e10a6-a7e6-4bf2-9b51-4a88a630ee9e","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":149,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"88fbc20f-ed90-4dfe-97d4-4b223b91f3db","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":149,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"e5127247-df4c-481f-9d47-60065eee4b16","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":149,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"1e5f09de-1455-457d-8601-ad3964013e59","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":149,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"86e09798-1ba3-4b8b-a7e9-cfc36a38e478","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":149,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"da4f2cdb-3840-4c7f-9949-d6e98f70fcce","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":149,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"b29a78a4-7a49-41c1-9195-9549486cea6c","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":149,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"fae4d200-4ed0-43c7-ba58-3fc2741ca856","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":149,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"7f14fa43-772f-4092-a8bf-86a960b60a06","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":149,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"c66bd1ce-64ef-4e38-ad64-52bcdee837ab","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":149,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"17971ead-c782-435e-914c-edc963f4ecc4","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":149,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"fbf80181-a2c7-462f-8a61-9e3c7385d325","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":149,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"19732faa-f88b-485d-a2d3-1e780aa7b2c4","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":149,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"f86c09ad-cfed-4a24-807d-94f3781a3b8d","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":149,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"2e137f8f-a421-413a-abdc-6598f237287c","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":149,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"0acfb632-861a-4536-abe0-94d8ac4b2f53","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":149,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"3ed031be-e354-44e4-80cb-8d2a449b07fa","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":149,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"8385d68d-e98f-4be0-ade7-995c9aacab2b","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":149,"box":{"x":101,"y":748,"width":326,"height":11}},{"id":"06dceab1-67c0-4de4-b56f-9967a90c4ab6","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":149,"box":{"x":434,"y":748,"width":413,"height":11}},{"id":"eb752ec2-6654-4f0f-bab8-103262a47c3a","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":149,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"f3bd1313-2f15-4afe-98dc-89ab8f74c8fd","block_type":"box","text":"public or private investment company.","page_number":149,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"aa95faeb-6007-48c6-9f90-172af14b1305","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":149,"box":{"x":102,"y":801,"width":372,"height":11}},{"id":"fcd11051-834a-4681-ad46-269499bb3f21","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":149,"box":{"x":481,"y":801,"width":421,"height":11}},{"id":"d30c2cc6-eb49-4b48-8081-e53f642023ab","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":149,"box":{"x":70,"y":816,"width":825,"height":11}},{"id":"b61e036d-728f-42df-90db-13e2b3395bd4","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":149,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"8d2a8430-2564-4837-8d74-b415d15735b7","block_type":"box","text":"II-105","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e0c9b7c5-ba88-42a4-8336-74ad0aaea670","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"892e78bf-c46e-4071-9ff1-436f5348cfe4","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":150,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"43c1c619-7336-47e9-8e34-c37f88390d3f","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":150,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"dd1c9e8f-6305-4632-885c-7c8077b35568","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":150,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"61072ce3-09e7-4654-b273-7b9898be86f3","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":150,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"4a2fafd6-2182-4b0e-94fb-d1f239a70802","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":150,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"cb1fcc9c-b0ac-440e-b022-7b963d76c428","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":150,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"2d9a98b1-d6ec-46ae-9319-73fab2eecf8e","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":150,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"d7e6fea0-ccae-495a-bfc1-55a0b56217de","block_type":"box","text":"intermediary associated with the account.","page_number":150,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"a0b051a8-3841-4dba-98ce-942ec7be832e","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":150,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"1fdf3264-dbc3-4439-880b-d3a1b1e903c3","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":150,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"8861b1b5-b0bc-4da3-a10b-b343da6c883f","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":150,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"765134e4-510b-4eaa-b324-32e99d2f4976","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":150,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"fdc4feff-bdd8-436a-b6e8-2ccb4879b9f5","block_type":"box","text":"CDSC shares.","page_number":150,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"1f9101bf-5ce1-4813-92d6-4081a03c9f66","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":150,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"798ffee8-2869-418f-8c34-9de0cd0605ed","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":150,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"706b93de-599b-4886-a07d-f800db83ad34","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":150,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"6e01b54e-75b7-43a9-870f-e0fedd679e14","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":150,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"6cd92bc7-cb44-439b-9568-d48d7a55311e","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":150,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"f26a8ea0-5bb0-49e6-b61a-2fba59fddf68","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":150,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"f9d9721f-b3ed-4250-853f-d4988a534774","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":150,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"10394349-6edc-406c-b8b1-fab4ab64e3db","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":150,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"a044a723-4e44-4726-a61b-a53f724a54d6","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":150,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"0c79c1f6-f9a8-4108-ab02-055f84df8aca","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":150,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"3e055a59-3dd8-45ac-8edd-f891160598f8","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":150,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"0f276771-c7dc-4e07-9c3d-67c75e361194","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":150,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"d5c87a49-ce43-44ff-851f-76be72968f5d","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":150,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"80e73bae-343b-4612-b5b2-e250cb04e644","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":150,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"43f65e22-62ae-4fcf-96d8-f1bf6f16929b","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":150,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"5a232e5a-40be-40b7-95d8-8675798133c3","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":150,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"c6356860-20a2-447c-8340-67031fca63c4","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":150,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"14164f13-aedd-426e-a508-99cc501fdffe","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":150,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"22154de2-bcae-49b7-a58b-ee2ba012f5a2","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":150,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"836988fe-20c2-4a80-8c58-61c12a1655d6","block_type":"box","text":"Investor A Shares.","page_number":150,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"b04a520e-958a-4cc8-a0d9-6b2086ff2cfa","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":150,"box":{"x":102,"y":604,"width":378,"height":9}},{"id":"f2e201c8-0aa4-4a04-abb6-5860a50460ce","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":150,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"068ac17c-941b-45ce-9548-77d720ec197c","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":150,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"72fa5e1e-01e2-4d0e-84f8-c0af768668de","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":150,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"6e5cef98-6df3-44ff-bce9-90ed3fdaf24c","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":150,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"31bad726-e895-458a-a703-8f59855c5495","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":150,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"ea6bacf0-4cab-457c-a8f0-ae89f026f493","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":150,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"4707db8e-86c0-48ff-b6b9-863551e8b89d","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":150,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"5ccb16b8-38e9-47e3-9cbe-2f391e622c2e","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":150,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"1cd57988-9f8a-4c66-829d-9c699db6ed69","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":150,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"bf571362-821d-44cd-8ad5-2da6a4fc76fc","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":150,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"35dfce65-d729-4cc2-8bf8-7a991fe46a0e","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":150,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"78921e32-da37-4edc-82e8-cde5d5276ec2","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":150,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"a7f5215e-f732-46f4-985f-ccb9c0c45f7b","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":150,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"4d19415e-8b9a-4edf-84ae-7f983844cd9f","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":150,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"effd253d-c981-48fb-8a62-5a768ff58cbf","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":150,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"184bb5df-f6e8-42da-bf2b-09c43a9523bd","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":150,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"a1fb053e-cb5b-4a7e-b764-3807e75db3d1","block_type":"box","text":"“Investor C Conversions”).","page_number":150,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"30869d3b-623a-4a16-930f-400e461c16d4","block_type":"box","text":"II-106","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6725f3df-48ac-4c57-99fa-8d7a45e60cf9","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78d61d48-9b9f-4366-9c60-4dd7e542f05d","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":151,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"e6218ecb-3521-4e76-8494-f2ad2c577084","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":151,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"e0a08ff9-049d-4116-ad20-753abe3db63a","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":151,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"ddcf508e-aa63-4efa-8172-5ddc5d099315","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":151,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"67a043ec-1a6e-49ec-b026-9617edc298ac","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":151,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"14917d5d-c141-4f43-8732-8571375b4e3d","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":151,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"2e78b51b-cf24-46a3-8fe5-7fe63c3e5831","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":151,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"60d7137a-15ec-407d-b072-ccf8d4ad6e1c","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":151,"box":{"x":102,"y":158,"width":396,"height":11}},{"id":"6ba75145-9371-4f90-aab4-547f16c725c8","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":151,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"749c0129-e430-4b0a-82b2-da60780b0e71","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":151,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"ae0d911c-85f4-4938-bbcf-4d718660df33","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":151,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"31c7f530-d247-4eb5-be0d-754e15f551ea","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":151,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"15d90793-29c8-410d-8ce7-3cd63364e16b","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":151,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"aa6550c8-b2c9-4002-ae40-0f48cb6159b8","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":151,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"64836069-b183-439c-8c3a-0d7279e1a95c","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":151,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"96b807d3-81a4-4464-93a6-884619ef27b8","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":151,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"4eaf016b-a01f-4b3e-99f7-a58767ffa85f","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":151,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"5f512183-aa1e-4268-b5bb-d980986b2705","block_type":"box","text":"redemption.","page_number":151,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"c4a686a0-b689-4e63-b207-9cebdf6881b5","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":151,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"6bac816e-2125-4c1d-9217-3c1a485c4fc3","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":151,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"d74580ea-65f2-491a-8446-d250c383a463","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":151,"box":{"x":102,"y":377,"width":572,"height":12}},{"id":"551096b3-00bb-40c8-8040-8d96f3490252","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":151,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"dd05c5d2-d6dc-4925-aff8-978ef4a55990","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":151,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"59147152-aff6-426a-af67-f5bf02691dfc","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":151,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"0e72f453-b0ae-45a4-92ec-a8074903b772","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":151,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"19dec500-1969-47f3-96f8-212c6d2e57cd","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":151,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"1e9e4472-5901-4e5d-9a8e-187c55a93769","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":151,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"3441834e-a551-4af4-aee9-2b01e187ce52","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":151,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"15f94013-a392-4191-84a1-14b0d605956c","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":151,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"88ed47de-5e51-4fe8-9474-4c9d19fae2d1","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":151,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"394ec5d6-1e02-4c84-b0cf-d94603a38527","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":151,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"de4eed28-9821-4183-a51c-9e6c6c45e8a4","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":151,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"b1139c91-87b1-4411-adc8-ffab9f6fa1f7","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":151,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"13d058f4-088d-4306-a53d-946ee89ff7f4","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":151,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"ad5d6e47-c28c-4b6e-b691-8cbbacaff6ca","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":151,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"d229e8b7-8990-4f4d-a009-5158bd93c52f","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":151,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"895b9ccd-6749-4ae1-9d23-c05b23d32b4f","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":151,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"1dfb9319-3aa8-497b-a622-10202c012280","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":151,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"4415ad70-d02a-4bf2-b003-58b61229544e","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":151,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"26bdbf73-4e73-4655-9fab-b69955bf78ca","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":151,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"69063e3b-0f00-4d2f-b42a-f6da2edc8506","block_type":"box","text":"Class R Shares","page_number":151,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"cf276d50-46ec-4679-8af2-6f37391a85c9","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":151,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"c408e799-7252-487b-b6cd-3b6f85f8b24a","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":151,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"1d70ced8-991f-4a59-a385-88be71e2259b","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":151,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"93c49690-f5e8-4338-946b-df534cc45a39","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":151,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"b82a1f22-fe95-406d-ac2c-edc3ad315078","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":151,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"c13142d3-65bd-4047-aac3-727c2a5acfa8","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":151,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"db207fe5-9523-4fa2-8674-8c2ae5d37c0b","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":151,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"5ff71e6a-ff8c-4dbe-be04-846454b98890","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":151,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"9cdabbca-414d-4c19-8a35-416ca0f55e48","block_type":"box","text":"II-107","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7cfa74a5-3a6c-48e2-ad83-6ed6bc78a2f7","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d9180b5-f9fa-4b9d-a3aa-5cde3adc5b66","block_type":"box","text":"Class K Shares","page_number":152,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"ac5bd922-763f-4211-b616-9b0dc8bc4cdf","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":152,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"05ebc68e-1be2-464f-878b-f372b101e313","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":152,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"60180e37-7259-4ab3-9321-36844b84df36","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":152,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"62da30c7-0168-466d-858a-d292b0716257","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":152,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"8f029ced-6337-4c11-aabf-750c4fe76551","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":152,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"1ec32c3c-9046-49d0-86a2-c530c1195252","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":152,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"5024e06c-1d81-48b1-9878-9c813582463a","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":152,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"d60ed46e-acfd-4505-9f65-c8928e44fde3","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":152,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"db13849a-9868-4a9a-9423-d4c0366cc4b8","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":152,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"5b4bfe77-a2d4-4a39-876e-8c537ca20a42","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":152,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"e3dbfa36-a4e5-4734-9706-d789e9127613","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":152,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"ca666053-1f68-4577-9659-20d434272ea2","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":152,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"372faef5-a992-4eb7-93a9-59a34fc82d13","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":152,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"9dcaacbb-f624-4adc-8412-a498142f4182","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":152,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"ca1c10ff-d08a-4caa-8b22-a05c4dc4820b","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":152,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"7e564c14-5faf-472a-9905-f9ee808b46a3","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":152,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"b75f465a-3e7a-4e8d-af6e-2170d04fb193","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":152,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"dd4822a4-6426-4901-967e-3ec21210907f","block_type":"box","text":"distribution and marketing agreement.","page_number":152,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"5f3d251a-2a8e-495b-8f59-f864c8894a99","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":152,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"d073a21f-d750-4f20-ab29-c89a3ea0777d","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":152,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"da25c768-0abd-401a-b4df-d4112ec4ff5e","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":152,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"470aae0f-b750-4147-aa92-b1fa0d2ea70e","block_type":"box","text":"Class G Shares","page_number":152,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"db33f455-8baf-4a36-af3a-7871bf78505b","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":152,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"dfb49e63-4d5e-4499-8161-5b71df0f5a65","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":152,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"e4891693-6b09-4fb9-bef5-17692f0871c9","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":152,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"c1a8b980-2629-429a-9632-6fff4e119542","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":152,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"914b89be-bc4e-4908-a123-ffd2178914c0","block_type":"box","text":"eligibility requirements.","page_number":152,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"8a8644c4-63d4-4842-9d87-919ae798e65b","block_type":"box","text":"Service Shares","page_number":152,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"4990f346-1929-492d-bcd5-365ab391d4c2","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":152,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"14c3e6c9-0174-4cea-bc2a-bab420d6410f","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":152,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"400e2969-0d4d-40b5-9422-e43ffb4acd2e","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":152,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"00972bc5-33c4-495a-91f4-71e95b767eeb","block_type":"box","text":"®","page_number":152,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"72630145-4507-4571-b0a1-9a9486fc6ee6","block_type":"box","text":"Fund in 1996; and","page_number":152,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"5ffcb6eb-4b7e-4ea5-a119-cc01fa4bb844","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":152,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"013d6e23-a183-4656-9812-a9b1cdb3f170","block_type":"box","text":"SM","page_number":152,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"ceff9c43-1031-4ee1-a750-334f65f53dad","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":152,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"3943d759-c349-49e9-bf2c-e94727163386","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":152,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"39e70f86-4f46-42ea-9694-48e39ad0011f","block_type":"box","text":"BlackRock Shares","page_number":152,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"6ed0efe1-3da1-49d3-855d-5f6a5d95be7a","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":152,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"338e57f7-919c-470c-bc5a-274ec36c703e","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":152,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"71053765-d911-421b-9017-924af527a8e5","block_type":"box","text":"fee-based programs.","page_number":152,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"8533b460-cfb7-4c7d-a66d-9358f3d9ca29","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":152,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"6704b847-2681-430e-b0a7-188afa61fc95","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":152,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"178cf6b3-f8ba-4826-ad5d-f21ba8e9db65","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":152,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"66ddca26-8bad-43c6-a0e0-552b50d5c35a","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":152,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"1523ec86-ddfd-448a-806e-feae5f2f500a","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":152,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"8f720685-bbe1-458b-aef8-1bffb02cd218","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":152,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"08718ad1-8a91-47df-b768-7f181706d6f5","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":152,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"5c1bbeec-1b1b-469a-9705-3467ef876d3b","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":152,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"0a903382-fd09-4f8b-b294-aaa6a50a29f0","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":152,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"584246b0-192c-4fd4-8ee6-89f05ee75894","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":152,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"b6244e7b-9214-499c-9506-cf14eb98eaf1","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":152,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"366d5c93-5e9a-457c-885d-279dd7b231c0","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":152,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"a700816b-bbaf-45fc-956b-306a0881db8f","block_type":"box","text":"II-108","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"94a13d13-c816-4f8c-95ba-a98c11377390","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1afe2af7-5ac2-40b9-b50f-cdb0d15b7897","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":153,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"79aa548e-f635-4e4e-854d-371a1a8173d2","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":153,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"158ce37f-bfda-4d6b-b4a3-22e7510039d0","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":153,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"bc19ba17-0c8b-4a25-8e87-ac85bad2e97f","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":153,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"407b1d7f-8f36-4d15-b096-0868e292fe26","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":153,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"38a392e1-7579-424d-8278-033e64491fcb","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":153,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"1b2b6bbc-c379-40d6-a6f5-07f892bda1ce","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":153,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"1a8f3a83-5f79-48ce-b4bb-6b7d7dbd1295","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":153,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"e8211365-7347-4844-8045-14b56b5fb537","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":153,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"45bca336-953e-4ac4-8b30-6200a122c51f","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":153,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"e81090f3-80b9-42f7-afa8-75b11e3bc619","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":153,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"56b06955-67e6-4eb5-b2e4-c287aced7724","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":153,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"43e1d83b-ce90-4638-850a-0fa85625104a","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":153,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"e2a842f2-9f8e-4d5f-84b1-720526288c16","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":153,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"daaa3685-5c66-47bc-885e-4d69082d53f4","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":153,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"6e74f62b-8f18-4188-b5b3-d633b315f65f","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":153,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"b2ac0de6-11ae-4d37-910b-8e1228688db0","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":153,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"30f3b068-d0bf-4413-a460-30f4fc371356","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":153,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"7069e9f6-2475-4ab2-8967-79a283a51eee","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":153,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"92619165-f3d6-4e16-924d-9764f3a4beb4","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":153,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"ac38c66d-330d-4b81-842d-a72762f2967f","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":153,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"8f710fb3-da6a-4d7d-9917-217ead303f4c","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":153,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"c5fd6ee1-6765-46ca-9819-2d57e665438b","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":153,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"1b1adfab-568f-4c11-b021-6347dfa7f347","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":153,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"76a5c183-02e1-4884-a6cd-61bce3bccbb2","block_type":"box","text":"compensation for selling different classes of shares.","page_number":153,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"f215b711-8d8f-409b-ab68-0992c5db04e8","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":153,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"d62defd9-6bf4-41c3-b109-2f7939444ca0","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":153,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"da6f8910-56a0-40d8-afd0-d864e437b33b","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":153,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"3e7ae3e4-317e-40f7-bd9c-ab6e39367a24","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":153,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"b6b1ae99-8c3f-49f4-8f7c-836b4c254cf6","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":153,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"f53a534d-0c98-4cdc-88bf-924bb5a5e8ca","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":153,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"39743f84-7bcb-4ff1-928f-438f74ee4220","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":153,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"475fbaae-548e-4612-ab36-06b341e7b21c","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":153,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"a7fb9aac-47f9-4144-a861-4771cf8342ed","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":153,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"7087207d-681a-48cf-b377-76f9287177e2","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":153,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"fa65142e-b043-4781-8df6-b3c6614b8046","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":153,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"736bf2bc-7675-4fd6-8f9f-ed77eecc869a","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":153,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"d042bf24-d69b-4aac-b92b-accacfd169ed","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":153,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"8c8ca3a4-90af-4aa9-be22-e70df05f8b09","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":153,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"a359df53-ccc1-4299-8286-71a572a62786","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":153,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"8f671e7e-81a5-4fb4-b8bb-11c969f207e3","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":153,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"ec4ae248-f9b1-4a7f-9804-bd20e9a127eb","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":153,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"2e512555-118a-49e5-a483-d74805c7c419","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":153,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"a4ed8dcf-0b3d-4e7a-862f-504579d93f5e","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":153,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"28f979ff-abdf-4019-b596-34f24ad0bf3d","block_type":"box","text":"easily accessible place.","page_number":153,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"896546f1-9e0f-480f-aa6f-b0e0ba15e2ea","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":153,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"107c94a3-9e35-4487-9f39-d64575d72f57","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":153,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"96a45111-d88e-4781-8a7f-8d236f29ce06","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":153,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"745786eb-946e-40cb-87c8-2dafde5ce6c5","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":153,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"fee95168-3658-4fde-a62f-74ba96e62cdd","block_type":"box","text":"fiscal year.","page_number":153,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"6f089fc7-dee6-492a-8da0-19aebd3c0209","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":153,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"5e04e0fb-b8cf-417c-8f9b-2c444b84029e","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":153,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"263b850d-498f-4d69-906a-48a091426b73","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":153,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"7775e9c6-6bbc-451c-bd41-d06439227eae","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":153,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"b8a154f2-3148-40e6-af74-b884fcb1a047","block_type":"box","text":"II-109","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"da186852-eb92-4d85-8040-d580e84bc169","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"58699de7-00f6-4a75-bb12-51ea255cb7c4","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":154,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"3bb1e171-be45-45ac-ae86-52f86131db34","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":154,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"76f1478f-4b69-4e2d-965f-e1f2c942aeb9","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":154,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"0e0ba75a-0e39-46c6-9b2a-647918b8427f","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":154,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"327d14ef-d666-4495-9384-4f4ed5197471","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":154,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"b8716b0d-977d-41fa-9704-5b29ce604fb5","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":154,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"a38313b6-9c74-450d-be18-b318c7959d47","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":154,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"f57196ee-04e8-4a3a-8ed3-d785f69180a8","block_type":"box","text":"and Class R Shares of your Fund.","page_number":154,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"64c84a2c-7c4a-4ada-a5fb-a72a5cb0f6a7","block_type":"box","text":"Other Payments by the Fund","page_number":154,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"f984d28a-6ede-4ee7-a8b9-41fbefc4ae36","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":154,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"704c881e-7a50-4c25-abe7-5d292014d241","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":154,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"884a7fa1-66ad-4e62-800e-f170681e9adf","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":154,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"9576c371-dd1a-45d8-9889-57c0f099d045","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":154,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"0d0f21db-6b8b-43e1-8423-90c482a00e19","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":154,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"6781edba-122f-4603-9217-04626e7be333","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":154,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"64e04ec6-6781-42ce-b2a5-6ee91d44e1d2","block_type":"box","text":"of these payments may be substantial.","page_number":154,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"3d9ef0ca-174f-4322-b261-e7580ae79e7a","block_type":"box","text":"Additional Payments by BlackRock","page_number":154,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"8ab254bc-d6f6-436f-a7e9-ad6ef27afe25","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":154,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"e3d8fccb-7054-4e46-902d-f0b738b89ece","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":154,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"4f06495b-61ae-4a17-a6ee-247e797769a5","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":154,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"39c1fcb2-fa82-4436-a00b-e1f6a9024899","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":154,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"430c8516-52dc-47ef-9b1d-4e488113db35","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":154,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"9c74b286-9bcd-4a53-9ab4-510d69bf1cc6","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":154,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"b1c6a941-d1b7-4273-ad36-969d083ea6ec","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":154,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"3d71ad2c-d623-4672-9cd1-994d1b2ab40d","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":154,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"efe5a2bd-ec50-46fa-a768-180a344b571e","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":154,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"c8291d86-4cea-48d6-90f0-52a846ba2fe5","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":154,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"7f92889a-da67-44a2-a420-b227c68945f0","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":154,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"32917fb3-4a88-4cb2-b4e8-29ee775f27b5","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":154,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"7d6f86bb-c17e-41d9-bf8e-046eecfc73c7","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":154,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"4b273816-c058-4507-bdb6-39cc8fcf5787","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":154,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"f8788c9e-8a86-4078-920d-efe061eb9de2","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":154,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"5f44b560-c137-42f5-8d1f-c270fd163004","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":154,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"a21c1465-f431-43d6-8166-b4e1cf251d7e","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":154,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"2e4114d0-ca34-4839-bdf1-f625989f3032","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":154,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"3a7495ef-ae76-433e-a8ad-534d39223ba8","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":154,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"eaf1f445-d10a-498b-9ab7-c25f3f98fc37","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":154,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"79826dbb-44c0-478c-be69-520ae67322b9","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":154,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"c09369a2-8a16-4984-bf40-cb8a64f13665","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":154,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"91ea5d7b-3775-49fe-80ea-6b6afc97b820","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":154,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"447e310d-85f1-490e-96f0-82ecf0d65a30","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":154,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"a27efa13-ac85-47d9-99ab-b7c26a0f5f4d","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":154,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"237b332c-776b-4a90-9441-2a4c1e899c87","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":154,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"78da65a8-975a-42eb-ada8-e02b84c9a197","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":154,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"b497044c-7592-43bd-9403-4290336dbc8a","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":154,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"0e0fbf19-32ab-4092-bfe5-bc24b83fdc88","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":154,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"6f5cbb54-e1a6-4b23-8b01-a4571e6a6c01","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":154,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"ed6cd8bd-b2e9-447d-b694-c19c8a1529c0","block_type":"box","text":"Funds.","page_number":154,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"9b7d9dbd-1054-409e-aae8-cce98ddd2848","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":154,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"fc9cefd4-8fe8-4a2a-8c03-80ca0cb7c6b4","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. 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Conflicts","page_number":158,"box":{"x":102,"y":872,"width":78,"height":9}},{"id":"4241739b-8c47-4bce-b135-7c79803c02f8","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":158,"box":{"x":101,"y":895,"width":710,"height":11}},{"id":"fbc63c44-71c3-41ed-a14b-b4c0be63aa93","block_type":"box","text":"arrangements may be an impor tant factor in the Service Organization’s willingness to suppor t the sale of a Fund","page_number":158,"box":{"x":69,"y":910,"width":803,"height":11}},{"id":"096b0b4a-efc2-4c5e-9d0c-b9c5aed95cb4","block_type":"box","text":"II-114","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"986a3342-a59b-4d0b-9444-9ee30015142c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbf92103-a438-4914-a304-b29a9d4aad8e","block_type":"box","text":"and/or par ticular share class through its distribution system or to per form services with respect to such Fund.","page_number":159,"box":{"x":69,"y":45,"width":788,"height":11}},{"id":"6325e40f-d723-4aa8-aa1c-d6a0afdfaf21","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":159,"box":{"x":68,"y":60,"width":819,"height":11}},{"id":"200719c5-4bbb-4cb8-a985-f2feb5616bc0","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":159,"box":{"x":68,"y":75,"width":473,"height":11}},{"id":"1d5ddcbe-1af8-4b5a-9b24-20c8915a90db","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":159,"box":{"x":102,"y":98,"width":793,"height":11}},{"id":"79e31281-3373-4e81-89f8-0bb7c6361c74","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":159,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"37bf08a1-85ef-4d7a-b8da-f1df52ba10d4","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":159,"box":{"x":68,"y":128,"width":833,"height":11}},{"id":"ff3f989a-ac43-4998-a878-f18bb66d4efe","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":159,"box":{"x":70,"y":143,"width":830,"height":11}},{"id":"60dc348f-aba1-451b-be10-ea773cc18c5e","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":159,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"d71a2905-945c-47e5-85dc-d37f1d26989c","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":159,"box":{"x":69,"y":181,"width":794,"height":11}},{"id":"e1581060-0dfa-4e0c-bc59-283510bc8901","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":159,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"7bde2b9f-5586-4d64-8b66-87c4a4f28487","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":159,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"4cb6ef15-2a67-4047-adb4-a642624ff924","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":159,"box":{"x":69,"y":226,"width":723,"height":11}},{"id":"8024b599-4126-4a43-bbf7-32e4b5ff2328","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":159,"box":{"x":102,"y":249,"width":759,"height":11}},{"id":"eea9e1dd-998f-486f-afb2-143d1b545917","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":159,"box":{"x":69,"y":264,"width":760,"height":11}},{"id":"9a45c169-aa4f-4d19-aa5c-a696b96e5553","block_type":"box","text":"appropriate.","page_number":159,"box":{"x":69,"y":279,"width":84,"height":11}},{"id":"25147b2c-dd9f-42ee-91a8-9540de34f3fd","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":159,"box":{"x":160,"y":279,"width":738,"height":11}},{"id":"258dd062-adad-428a-bf05-22d5d6bcbab0","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":159,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"8eef48b3-2599-4e13-bc86-ff609f28ed8d","block_type":"box","text":"described above.","page_number":159,"box":{"x":69,"y":309,"width":122,"height":9}},{"id":"0c44143c-39ec-4978-b567-4734c315554c","block_type":"box","text":"REDEMPTION OF SHARES","page_number":159,"box":{"x":385,"y":339,"width":208,"height":9}},{"id":"e4a5a709-12ea-4a84-a3d7-6d8f33a3fe5e","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":159,"box":{"x":102,"y":361,"width":798,"height":12}},{"id":"ce48781a-2dd0-4850-9e88-88be023eadcc","block_type":"box","text":"the right to redeem some or all of its shares in-kind under unusual circumstances (valued in the same way as they","page_number":159,"box":{"x":68,"y":377,"width":817,"height":11}},{"id":"cf943a14-5caa-4357-988e-fd5fd74c3c6f","block_type":"box","text":"would be valued for purposes of computing a Fund’s NAV), in order to protect the interests of remaining shareholders,","page_number":159,"box":{"x":68,"y":392,"width":840,"height":11}},{"id":"07025f1e-693d-4645-b050-6656f8790ed8","block_type":"box","text":"or to accommodate a request by a par ticular shareholder that does not adversely affect the interest of the remaining","page_number":159,"box":{"x":69,"y":407,"width":834,"height":11}},{"id":"03256439-bfa3-4921-be8f-3c7b3de3c67f","block_type":"box","text":"shareholders, by delivery of securities and other assets selected from the Fund’s por tfolio holdings at its discretion.","page_number":159,"box":{"x":69,"y":422,"width":829,"height":11}},{"id":"302d9ed8-fe6a-47f9-97a9-d69b2676d56c","block_type":"box","text":"In-kind payment means payment will be made in por tfolio securities and other assets rather than cash. If this occurs,","page_number":159,"box":{"x":70,"y":437,"width":834,"height":11}},{"id":"173bb9d2-5ede-49c6-b00c-b06693610be4","block_type":"box","text":"the redeeming shareholder might incur brokerage or other transaction costs to conver t the securities and other","page_number":159,"box":{"x":68,"y":452,"width":793,"height":11}},{"id":"72635cfd-9bf6-41c9-9174-dfa8c85c3b2a","block_type":"box","text":"assets to cash. In an in-kind redemption, a pro rata por tion of a Fund’s por tfolio holdings will generally be distributed","page_number":159,"box":{"x":69,"y":467,"width":834,"height":12}},{"id":"0b31dda1-3ec4-4da2-8c4f-58961a5a62f0","block_type":"box","text":"to the redeeming shareholder, but an Index Fund may, under cer tain circumstances, deviate from pro rata redemption","page_number":159,"box":{"x":68,"y":482,"width":838,"height":12}},{"id":"c434f6b2-c6c2-46d3-a272-2f6606668fac","block_type":"box","text":"if the securities and other assets to be distributed are deemed to be a fair representation of por tfolio holdings and","page_number":159,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"3aed9aa7-0966-4e33-aab2-6b08428732de","block_type":"box","text":"the interests of the remaining shareholders in the Index Fund are not diluted. Each Fund has elected, however, to be","page_number":159,"box":{"x":68,"y":513,"width":831,"height":11}},{"id":"7cc3810b-6a8b-4d18-a194-8f4f83fd349d","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so that the Fund is obligated to redeem its shares solely","page_number":159,"box":{"x":68,"y":528,"width":828,"height":11}},{"id":"1d262a2f-822b-46f9-93b3-6f05dc3c4d63","block_type":"box","text":"in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The","page_number":159,"box":{"x":70,"y":542,"width":826,"height":12}},{"id":"7fb7ca98-8318-406c-8f1e-a0073a19bf2c","block_type":"box","text":"redemption price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":159,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"2c2867bf-c7df-454a-9058-d0edae51702e","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":159,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"20992e06-b436-475e-8b3a-6e8478cf1a41","block_type":"box","text":"depending in par t on the market value of the securities held by the Fund at such time. Except for any CDSC that may","page_number":159,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"6bd2c596-f76e-4cb6-ac9e-617225e93949","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":159,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"c2fe87c5-8658-488a-94c9-9e6fb50f11e3","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":159,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"12868d66-e613-4f7c-bd58-5b31a2974851","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":159,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"19d7135c-0c6e-433a-b95b-775ad764b51d","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":159,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"6f7e42de-1da0-44f9-8299-6e822303ebe5","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":159,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"48fab500-7f27-4f76-838b-d302e44065fc","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":159,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"7968466d-7302-4cfa-a1de-9f285d2ab227","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":159,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"55f0015b-ec51-4fa7-9088-4ab30b1a856a","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":159,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"880b72c7-999f-4481-9581-9cd7dc653222","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":159,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"75513564-c7f5-497e-b1a3-0237576f3203","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":159,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"5ff026bb-5864-407a-a361-01e7e408c6ad","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":159,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"ed73b422-868b-42f1-8cca-b6d4d353c04c","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":159,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"952fbd8c-639c-49f9-a60d-cfe9fff56253","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":159,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"de81571c-b9cd-4b3c-a529-be710ece8148","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":159,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"05130a66-fe7d-4e38-91c3-0703c6a9d6b7","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":159,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"dc4c8ba9-32e0-46b1-b05e-a831055d44ba","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":159,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"8f654dac-8aef-49c3-b9bd-f2b8515fa20e","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":159,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"69faa509-4222-4eca-b729-2fdd5087b5be","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":159,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"980ca3ec-c54a-4f18-8ae0-bff9f29f57c0","block_type":"box","text":"II-115","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6565bcd0-cea9-4ea2-adc4-8f3d3143bf38","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ad1fa49-1780-4d31-bfdc-1a54148a192c","block_type":"box","text":"Redemption","page_number":160,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"b2d10e18-b072-4f0c-9f6e-8dc4b48dc0ac","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":160,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"c3495cc8-2abc-4c63-adb6-cdaf4b16693f","block_type":"box","text":"Redeem by Telephone:","page_number":160,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"3c2ed1ea-172c-427a-b10b-9e471356dc2e","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":160,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"ffdc044c-f242-4df1-a779-d24e296732f5","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":160,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"2eef3ed8-3c68-4d16-9b5c-6bef9f241f68","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":160,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"e35ff1fc-698a-41fa-90db-9da686e55f68","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":160,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"c8f21c96-68b5-41f3-b85e-4c7d9db404b2","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":160,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"981e619a-208b-4888-93dc-be211c8f820d","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":160,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"1c2773f8-f5d8-4cf1-83a5-204d4b71aa84","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":160,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"7783b1b5-7f45-4f10-b0bd-af6175ffffc8","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":160,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"89ded038-32aa-462e-977b-b359139bd424","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":160,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"fc8ad6a8-b235-4c65-8248-d09f3cb628f8","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":160,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"26fb107d-9d41-4d42-9dad-1bbc221c5c4b","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":160,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"6d6c9912-294e-4562-a637-0a1d020ff789","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":160,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"2e6fd56e-ae0c-42f6-80d1-49995ccc3489","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":160,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"35e0e7f6-f048-4410-be63-ee1abb158d8e","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":160,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"3e2fa99b-4454-427a-81c9-3c23ae5f1ed1","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":160,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"0c643111-a8bd-48bf-8dc6-4bc004598f03","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":160,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"f8ae356d-f5fb-40c1-bcbe-73cfe63b9c5d","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":160,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"03d1ef3c-7067-461a-94e4-c6b7bc34400c","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":160,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"5ea40691-7bfc-405c-b172-223fd7b6fda5","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":160,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"2497649f-eb92-4c40-b0f0-eb080d176941","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":160,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"3d064d81-799c-4216-82fa-61f62f410e31","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":160,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"f40b0583-2f9e-41e1-8b8f-b3723fc57620","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":160,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"0ed1ec7b-bcaf-4432-ad5f-6e8d152be746","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":160,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"03a79168-5b99-41d1-a3fe-1ddf0aed1cb3","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":160,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"f1bc93ae-90a1-45a9-b7b1-d5ca6663e5ed","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":160,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"746665ab-fa4d-440a-9dc2-fab46cd3292c","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":160,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"b1ca64bf-2bee-4682-a6fc-a7d0d1762391","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":160,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"24195731-e94b-4b8c-8f7a-30742007d2c0","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":160,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"542a74e3-73dc-4ae5-9876-5c77dddcfc53","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":160,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"63285224-28f0-4de1-877b-62f43c22dafc","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":160,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"a0e3c04b-20dd-4fed-aabd-0256c9df2d14","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":160,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"befba0a9-bc5c-4578-a379-e12e6bdbc09a","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":160,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"b6db684c-e3cc-4a8b-8f54-94e19bb972fa","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":160,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"d4d0d13b-62fd-4513-8dac-ee97aa465c5f","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":160,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"9d2d39d7-06bb-4fe2-a457-4cb437ede554","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":160,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"8a0b60f0-241f-4096-af4d-5357dacb5a4f","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":160,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"574f5013-7dd6-499c-b186-77b617534069","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":160,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"948b2ba1-4efb-4bd1-8a20-f669f2ceb60d","block_type":"box","text":"Redeem by VRU:","page_number":160,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"983ba02c-c9b8-4059-a2c0-84f28669d8a7","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":160,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"3324cdd8-eef9-46a9-97fe-80ed8e4fce3a","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":160,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"ed661b0b-c459-4bcf-aac3-c30bd7b0413b","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":160,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"1bef257d-e862-448c-9ba0-1bcf3d84687d","block_type":"box","text":"Redeem by Internet:","page_number":160,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"a3cb3a52-9c6d-4575-877b-8490d9377390","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":160,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"6df4f760-75d6-4920-bf33-18ce48ec5601","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":160,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"ff256169-19e1-4547-8910-1f38558b4775","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":160,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"7468f671-094d-4e3b-8622-fbb72c1b1f82","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":160,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"a0549c6d-30a1-45d4-8e56-228f6e38fceb","block_type":"box","text":"institutional investors.","page_number":160,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"18d7ed77-3bae-4977-abe4-d1959bf3545a","block_type":"box","text":"Redeem in Writing:","page_number":160,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"e95b5d8a-027a-4981-b97d-cd3a4474315b","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":160,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"7321c115-0bef-48ed-b4c1-8bfbcdba0fa2","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":160,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"3dd508b5-30cd-4c20-bc51-8360b1b67f30","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":160,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"c154dbe3-ca6d-4c93-8762-14deee57662f","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":160,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"c262e6f8-5bf2-40c0-827e-e27f7e9b1036","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":160,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"41e19ac1-9114-4505-b52b-d78216b3fec1","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":160,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"d0e951ea-8c40-46ad-8b82-c9a1e379186d","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":160,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"3fc61036-b959-410c-9f73-77a97eaa3dec","block_type":"box","text":"II-116","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"12482147-f130-47c5-804e-e3ce3382250d","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a22a8c5e-c2e0-494c-8fc3-9870f45dc896","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":161,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"73801061-6d94-4ab3-b630-0fb961fb6793","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":161,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"581cdd16-6d6b-4777-91da-9e6aff151ee3","block_type":"box","text":"or wire to the bank account of record.","page_number":161,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"9a86420a-5fef-4328-ac0f-e893ff98194b","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":161,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"c0192931-8baa-43be-b2a4-d2b71d98f6b7","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":161,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"fd92a5c4-d4c6-4e2f-a963-73259edd5987","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":161,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"6aef1ffc-ec87-4666-858a-874978d5bd9b","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":161,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"490636a0-ba3c-4c03-9cae-50e761a17aa5","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":161,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"9875d1c7-6374-4e65-8cde-604dc2f37910","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":161,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"813d8426-526f-462b-bf07-6820f9a1f2ca","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":161,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"8146fa6c-192e-4ff7-84ab-dccdc7196d70","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":161,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"4b350db3-f4ac-410f-813c-ef44f7b1242b","block_type":"box","text":"redeemed by the Fund.","page_number":161,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"fd9a4f23-be66-4154-ad53-1d9561a91624","block_type":"box","text":"Note on Low Balance Accounts.","page_number":161,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"49bbc3d1-7710-4e89-b46f-a91603dc933f","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":161,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"b3c9dec3-8cef-4121-874e-92cfe7cb9bee","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":161,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"f8201150-1d85-47fa-af4a-99c6e14f1a56","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":161,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"5a5612f0-df88-4777-b51f-4b9efd408992","block_type":"box","text":"for any reason, including market fluctuation.","page_number":161,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"409c4168-3045-4245-a25e-75344406b6b2","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":161,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"012c2e41-e3c9-4b20-96bd-22001225c388","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":161,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"9bd12563-d814-4a87-b5fc-60f492019105","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":161,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"386624a7-6d44-4843-9bd7-588af96a7796","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":161,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"ad7f71b9-9d59-483e-ac92-8a1df541147d","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":161,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"2de1334a-4b86-471d-a809-fcb4cf42e98d","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":161,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"10378098-9ad8-4f59-b352-a12c021fe796","block_type":"box","text":"Repurchase","page_number":161,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"2105966a-1aef-43ce-aced-5f46e28412ea","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":161,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"696073ec-ae62-4d6f-9063-a60155e54b8c","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":161,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"2881937e-49fa-40de-a43e-4a9c8ab69485","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":161,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"6ddbcfbc-d66f-49f1-b65e-7609aab4bac1","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":161,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"f5e61e50-f97e-4699-ba97-d2beb7af4b4f","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":161,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"349995a6-13fd-45f0-8363-bcd3bb4b6c7a","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":161,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"24ee873e-5e92-40e7-b6a8-1890a171423c","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":161,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"dda2c22d-9ed9-428f-9cf5-b2cf57b549ff","block_type":"box","text":"next business day.","page_number":161,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"9410b9e8-4899-41bf-82f5-8c6bd57cdcc7","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":161,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"61f67de4-ca99-4a08-a4b7-149310886d04","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":161,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"c14fcc90-5e35-4eeb-bcdb-a96de2cdc0d5","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":161,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"0b863b4d-457c-4a5b-a3a2-2a8336b7526f","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":161,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"689af4ba-d635-441f-964c-ee72f97de086","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":161,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"810a4523-91d1-4634-a3cf-f76c746384e4","block_type":"box","text":"redeem shares as set out above.","page_number":161,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"f19054e8-f52d-406e-8e9e-b18e804d9cd0","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":161,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"7ccb679e-84c4-4a7a-829c-b3ce86e364eb","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":161,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"361a555c-b85a-4097-b385-f100518a70c4","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":161,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"4bc1e255-9daa-4c09-8fc9-7d1c5b9fa86d","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":161,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"a3d99ee7-8df7-4b40-bdc2-f9aec73ed405","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":161,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"b8e77740-ebe6-4ba9-948a-441c884f7283","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":161,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"ec51ac8f-edcd-47a8-a8b7-24b1792ffb9f","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":161,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"1724ba77-2b7b-49e0-84a0-34912a30bf02","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":161,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"b7d32394-64f4-4ada-be3c-feda22540626","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":161,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"a853cbea-07d0-4569-b924-31f326234885","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":161,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"0e229a0a-a95c-4202-8a34-26bc2b3e6fc5","block_type":"box","text":"II-117","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d5c766b-d7f4-4316-aa8e-c2774efdb60c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"adb60498-3411-466b-98b4-3ad3e55dd9d4","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":162,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"e7af84a7-2c74-47ff-acd7-afc8a66e7402","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":162,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"a14f689e-9342-4c62-b673-9a438f4b1e30","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":162,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"f005af25-b35a-4628-bb14-e0bdb705d275","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":162,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"884b32ba-793d-427f-aea5-f6a17f327a66","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":162,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"122c42e2-11e9-4f31-990d-9012649ac2ba","block_type":"box","text":"Investment Account","page_number":162,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"4d1ae9d0-e3bb-45ce-8c00-7f85a3d29f02","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":162,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"d7220534-22e5-47e9-9074-937d25e71df0","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":162,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"f245bc5a-bc0a-4a83-bc82-83ca913d5572","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":162,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"049336a3-b06b-43e9-b02b-5c50b8f3567d","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":162,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"cc6f4bd9-bdcd-410a-88c3-5226f0335aa7","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":162,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"35a746bf-343c-439c-aa62-cb3beeb79688","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":162,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"da6ac26f-5422-4f5b-9afb-d5d2dbdd76e6","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":162,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"142afd08-874d-4168-ac05-3bdd2592d612","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":162,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"71d87b60-02b7-4ee5-ad2a-7b8b3c038a34","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":162,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"95ccd150-de39-4ad9-be67-4ec70e200c6d","block_type":"box","text":"automatically at the Transfer Agent.","page_number":162,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"ddbe8fb9-c460-4aa5-a8c4-7ba397ca819c","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":162,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"6414b3bf-abac-4a2d-878f-9d385f656768","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":162,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"973acb06-bf45-43a6-a9dd-36e8cc1bd9b9","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":162,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"a7690d0a-1ec9-40ce-a7b8-0e231477c440","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":162,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"220afcc9-97b2-4e1f-9374-d0cff7d47e03","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":162,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"552adf18-1272-4d52-ac39-67ac4073deb9","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":162,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"ae03f179-fb24-485f-967a-f570b8e1b689","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":162,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"48dbe11d-eaec-4206-8619-1aae7e26668d","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":162,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"119fa632-36ba-4f1b-a236-327e93ff4c1e","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":162,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"2ef7009d-9109-4bdc-b9f0-9abb0d7580fb","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":162,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"69ff33ce-2dcc-4a4b-87a3-b7b594457422","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":162,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"937dcac1-70d2-435f-b137-a783aad596f0","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":162,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"55c43f0b-56bd-445d-af7a-e0c629543f9c","block_type":"box","text":"issued.","page_number":162,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"cb1cf521-7dcd-4dac-9df2-153e588d5b41","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":162,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"24f41668-b967-44ff-99e8-13fd157b63c3","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":162,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"771313b0-f94f-4ec6-a243-61fc6316b114","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":162,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"178dd1f2-89dc-4e1e-b80f-ffdd4774a123","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":162,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"e14b6d72-cc3f-4954-854e-67b7a8f4599a","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":162,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"415ebc52-3997-4b6b-8517-9fc4cf5a5489","block_type":"box","text":"Exchange Privilege","page_number":162,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"074e223e-c0dd-462b-a26e-7a7b3c25811d","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":162,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"8cd8fa3c-e5a7-4da1-803e-21d6b5fdc287","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":162,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"46ab06a6-7e7b-418f-8b77-75ab94f4aef3","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":162,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"005a1c9f-89f2-4650-93a0-1ca84cb01f8f","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":162,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"7a074389-4146-4859-8fbd-b36b55c6fb7f","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":162,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"58c7c501-7e9f-41bc-b0d4-bea4bacb3954","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":162,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"ec854fef-d252-412b-a0b0-8b64dc76a9e2","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":162,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"9c7f1411-f8ec-4824-a6cf-2b42f37af005","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":162,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"e700b7fd-3761-4296-aa07-6136c9c57268","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":162,"box":{"x":102,"y":771,"width":648,"height":11}},{"id":"95e9397d-8a94-4079-8f37-443f57f4990b","block_type":"box","text":"Institutional Shares","page_number":162,"box":{"x":757,"y":771,"width":137,"height":9}},{"id":"3505de40-21c5-48ba-b26e-64f1b47ade74","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":162,"box":{"x":69,"y":786,"width":817,"height":11}},{"id":"85bdfd38-5042-4eb5-8bfd-cc5754ff6b7f","block_type":"box","text":"Investor A Shares of other Funds to the extent such shares are offered by your financial intermediary. Investor P","page_number":162,"box":{"x":70,"y":801,"width":798,"height":11}},{"id":"79d1e22d-b295-4f0c-a16e-1b4733e7fd1f","block_type":"box","text":"Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are offered by your financial","page_number":162,"box":{"x":69,"y":816,"width":838,"height":12}},{"id":"36cd9802-5557-480d-8cf1-4fb7537bc371","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":162,"box":{"x":70,"y":831,"width":834,"height":12}},{"id":"30617fc4-721e-4504-b69e-71bb37f7e2c2","block_type":"box","text":"for Class G Shares of other Funds.","page_number":162,"box":{"x":68,"y":846,"width":246,"height":10}},{"id":"d0429bec-491e-4b96-9b0a-be061641abe9","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":162,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"51fdb4ce-51c4-43fc-83d6-cf136dd3aa66","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":162,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"4a7e41f5-2af6-4a8d-ad71-44315701bbba","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":162,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"f2a14980-2d2e-4cfb-97ee-e4e0633f9408","block_type":"box","text":"II-118","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0962d7eb-6db6-41da-a9a7-c0c52d987618","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b96f1c48-9d65-489c-a1ad-8a50ce383fc1","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":163,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"55e3d43c-a406-492c-a295-8fea0b30d291","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":163,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"83b8169d-873e-4abf-8d9d-4450a65cbaab","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":163,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"019decc8-a2aa-4bda-a8bf-31dfb0324244","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":163,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"5fdeae24-e817-44e2-921f-32a51c8831bb","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":163,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"2f91fbe1-a6a8-4a11-8019-135396b81dd9","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":163,"box":{"x":102,"y":128,"width":229,"height":11}},{"id":"ee8ade51-4fb1-41f4-95d1-34ae68e1f4ca","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":163,"box":{"x":338,"y":128,"width":570,"height":11}},{"id":"c7dab95b-5543-45c3-b951-d8ec57629228","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":163,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"d5bd8140-2150-4009-9eb6-92b3a7786f99","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":163,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"795ab9a9-9927-4b83-8ffd-ae07edc0d001","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":163,"box":{"x":68,"y":173,"width":811,"height":11}},{"id":"a0c959fe-1147-4721-98b5-aabc00fdd31d","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":163,"box":{"x":69,"y":188,"width":827,"height":11}},{"id":"c9778b7e-b737-466d-9d9a-333f0c056a7d","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":163,"box":{"x":68,"y":203,"width":781,"height":12}},{"id":"99bb7fe9-c653-4d3e-97b8-7ffe713330f8","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":163,"box":{"x":68,"y":218,"width":654,"height":12}},{"id":"6d0a1311-3982-47d1-b6b6-4c0d10861561","block_type":"box","text":"Exchanges of Service Shares.","page_number":163,"box":{"x":102,"y":241,"width":211,"height":11}},{"id":"e68d888e-866f-471e-874e-0a0bee1ee5f6","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":163,"box":{"x":319,"y":241,"width":588,"height":11}},{"id":"450117c7-5174-4e8e-a280-6c6d162e5a27","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":163,"box":{"x":69,"y":257,"width":342,"height":11}},{"id":"7ff77e2e-e66b-472c-971c-fbb1d778b2f5","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":163,"box":{"x":102,"y":279,"width":335,"height":11}},{"id":"da5d79ff-32d5-4622-abbc-c5835a1065ca","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":163,"box":{"x":443,"y":279,"width":455,"height":11}},{"id":"47f06d24-5924-4175-a570-deb1da8a15fc","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":163,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"35434632-a7e8-4d3f-8020-ae5dd4315896","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":163,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"ce476cba-6c7c-4134-aafc-854ef0a53527","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":163,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"22487e2c-9d9c-4923-801b-ef875dbf9dc1","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":163,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"13120bbe-3837-47d6-b9c8-b46dd0786f2c","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":163,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"955a5798-48b0-4f98-89a8-73aeb3bb4807","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":163,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"de2e6dff-7b2f-487d-94bc-8345c078d4d2","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":163,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"551ee01b-dad9-4f5a-b072-3ac9c5aa2044","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":163,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"66f0bbc4-94e0-456e-bb46-e695f7bdaadf","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":163,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"746cdc13-a66f-49f4-aa85-d1a404d4bfd3","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":163,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"d8379e73-cfc0-4cfd-bf46-acaa175e06d3","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":163,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"b84ed66c-e904-4776-abc4-a128a2017a6a","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":163,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"a6414cbd-15a7-4735-bbc9-e6ff9714587f","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":163,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"94b4ced9-89ef-4794-bc08-536bd7181fa8","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":163,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"a0f0476d-e08b-4517-8cbd-f32c793490f8","block_type":"box","text":"exchange.","page_number":163,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"01e88e55-ae5b-4902-befe-60030b666590","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":163,"box":{"x":102,"y":529,"width":337,"height":11}},{"id":"5dde5090-2ab4-4cb4-a22b-b42764ca923c","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":163,"box":{"x":445,"y":528,"width":448,"height":12}},{"id":"c26c11f2-bd93-4fa4-b662-b80e9fd77ddb","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":163,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"122a32ef-af97-4910-8d8f-ffebf53e79f3","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":163,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"1cc14c22-eb57-42ab-935b-8490950d5068","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":163,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"c6cca4dd-4c10-4dc4-a605-899c69447942","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":163,"box":{"x":102,"y":596,"width":245,"height":12}},{"id":"93bd0531-869b-4132-915f-8cc4666dd405","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":163,"box":{"x":353,"y":596,"width":543,"height":12}},{"id":"202eeadb-6298-4f68-9979-c1e911826056","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":163,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"3ce71b46-e0ad-469a-94e0-ccdf3ef51781","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":163,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"87fe1afd-893e-4b8e-a469-af85bd895a9b","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":163,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"59b18f6f-2e4f-45e8-9f11-5ae473694d33","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":163,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"92fc61e0-c066-43d1-8e59-dc193c103ce0","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":163,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"08fdf230-34df-4a9f-9a14-71ba96498fce","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":163,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"153f4eca-fa41-4299-acf7-3798bbb1904f","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":163,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"87efe6f1-7525-4fc4-a8e2-1df5634cc16e","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":163,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"edaad55a-f8f4-4565-849a-02e768053aa8","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":163,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"3b8f682c-8476-4b30-a0b1-0dc98cb355f6","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":163,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"269dec1c-1a93-4707-b6ac-b10e87df5ba8","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":163,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"72af96d4-22f2-43bf-b6e8-7097c6d54660","block_type":"box","text":"Transfer Agent in writing.","page_number":163,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"e55cf985-df9d-4473-99f5-2e0006d9d8d2","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":163,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"58eb2d7b-23cb-4bae-94b8-290a64c082b6","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":163,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"d3e07141-2db4-4357-899c-3a160e171f68","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":163,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"74251488-2574-4a7e-a84a-d6cc64fa4d5f","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":163,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"74741718-6975-42e1-af74-58cc387fad46","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":163,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"678492f8-513a-4d80-a05f-58537ebf3d1f","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":163,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"562879ae-68fb-4a36-8676-362a2e3dafb5","block_type":"box","text":"II-119","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3caa667e-6ef0-4cb9-8d13-2be8f3b71776","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84af3368-a84e-45d5-a70e-03df4a0bd3ad","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":164,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"df6af93e-0871-44ec-8810-529f7eb3ed28","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":164,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"d035fe22-3d25-43e8-8c03-54a2811a3f60","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":164,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"59427b31-1828-43aa-8d92-52c85f4c8057","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":164,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"076c9d00-eee4-42ba-9af7-58d966cc247d","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":164,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"b40104ea-670f-4126-b520-b345d88ca6c9","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":164,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"115efc97-890f-441c-9857-db16fa235e78","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":164,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"fed03ee8-8182-4b6e-9146-868c698d356c","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":164,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"9b9116e9-c040-4895-9cad-b1db3edbe872","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":164,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"3080964f-5614-43b6-ba54-9b450d41af1f","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":164,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"ac04e591-be3d-4964-a903-573660e09db1","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":164,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"f36a7042-3b4a-443c-a639-e5807aa9df7e","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":164,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"6609a6f9-2cbb-4837-9972-2634c53ac4a3","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":164,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"13d85243-e8e7-412b-8ca4-e67e241a1b84","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":164,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"09e5c49e-65bb-4ec5-9f08-f40121ad563b","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":164,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"0cf49d2b-0b57-4be9-83e1-dca71b72940c","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":164,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"cb86902c-4671-4000-a89b-77effa0885b6","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":164,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"c6a5b3a6-7984-4b3a-897c-38bdc6de16a8","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":164,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"e590afeb-1015-4c8c-9b6f-23589506202c","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":164,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"7b482d93-d951-4f63-aa81-d9c5de271064","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":164,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"806d38db-590b-4a66-8209-157921ff903f","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":164,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"695b9aca-e837-4509-a8ac-b7eae0cae724","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":164,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"7c137ef3-f8c3-43dc-a89c-aecbbbcd59a4","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":164,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"4c94efbc-9f12-4a46-991d-ddaf977b2643","block_type":"box","text":"may be distributed by the Distributor.","page_number":164,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"c44872c3-0cd6-40b7-8074-0d4a6a20fc6d","block_type":"box","text":"Participation in Fee-Based Programs","page_number":164,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"c5d6ccfe-b735-48e5-8830-19ce6a4db55f","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":164,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"6d243c1b-3de8-49e8-9c37-01ac7244c4c3","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":164,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"33f156ec-f875-44d8-a05d-6616fc53650f","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":164,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"dd661f07-1e15-48ae-bc68-09b1f3c1fa55","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":164,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"26618459-e865-4783-aff1-6cab77401c79","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":164,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"f728542d-01ce-47c9-b0d6-b863b155d3ed","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":164,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"ff60218f-0c5b-4d74-abca-d3e2af64fe2d","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":164,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"f8b5ed36-c64c-40a5-9aa9-6a693d469fcc","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":164,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"032cc09a-26d7-4401-b378-c75a731752dc","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":164,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"a3549fd4-2d08-4ba8-a8e6-8305aea15ca3","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":164,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"34fcae95-8685-4a82-9bad-5d1d10d479a2","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":164,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"c4fa7d58-0d26-4ea1-a7e4-9f9c4cfccd43","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":164,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"99e85128-0260-4e2b-8198-87a154f9ecaf","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":164,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"7795c5b6-9a55-4c97-872a-82509724012a","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":164,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"3c06e677-8540-4852-94d1-51add37a8def","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":164,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"6a578b4c-da37-46ea-82d3-02ddb7684e3c","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":164,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"dc90dd88-c398-4d39-a53b-d083d9d4c17a","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":164,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"8d1bce1a-5546-4867-869b-67824ab5a6ee","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":164,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"0d5495c5-581a-4ec9-8d47-d88ffc1ad8de","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":164,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"a48d9541-0bdb-4dd0-bd3d-bccfa6994d6f","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":164,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"e8d0f570-09e0-4ca6-9179-f82121891e86","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":164,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"61b5fba3-e9ba-4129-992b-f23beb154ebb","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":164,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"a3f55ad0-d0b9-4b3e-81a6-3fa15f87cc91","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":164,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"b332e0df-3348-4d47-8a1e-9b72063bc62d","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":164,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"5b65e0e3-7074-464b-a20c-556c632d2459","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":164,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"94eaeaa3-42c1-49ec-ba9f-52919efab0f5","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":164,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"0c9c20a8-4fbf-4b6e-8757-f3ee113974d8","block_type":"box","text":"information.","page_number":164,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"328caad4-a0be-417b-adf8-8f884c9cde20","block_type":"box","text":"II-120","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f4f9b952-ae6a-4f8a-8695-7e8013ea3ccf","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93395740-e80b-4c1e-b46b-38268b0fe2a2","block_type":"box","text":"Retirement and Education Savings Plans","page_number":165,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"7189ada5-6cff-433c-b4be-c28769550ca3","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":165,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"f4e3e798-02b1-4a99-be4c-8ecff5850213","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":165,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"5074244e-6e4a-4f31-8996-f90e937241a5","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":165,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"bdbe83fc-3bb0-4915-a166-c6c3639f5087","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":165,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"3e56f0e3-f3c1-48e4-ac73-e705a9c31703","block_type":"box","text":"your financial intermediary.","page_number":165,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"9fea0d13-84f8-48ce-bc6a-43c94162bcf9","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":165,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"3634a9eb-fce7-4b98-b2af-7a6082c93641","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":165,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"ceadd76b-6a61-4b68-9ab4-e2d614290925","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":165,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"cf44646e-0f99-4f43-9d28-723e9be8b42d","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":165,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"c901e4cf-a105-444f-a3d2-de944e2c1845","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":165,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"1390938a-3224-4567-a09c-ed18db9414d0","block_type":"box","text":"Automatic Investment Plans","page_number":165,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"0cdcb216-6b7c-41e1-a345-ad374d4ba5c6","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":165,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"b744acd2-f706-45ea-9b8a-0f53ebea961d","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":165,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"856d9a0e-efcb-4d6c-bea9-53033d80f727","block_type":"box","text":"®","page_number":165,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"03791312-f2fe-40e6-ae8f-380e61f960ad","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":165,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"c2e4484e-21a4-4918-a83e-0d32aad3e286","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":165,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"fbba1e8d-18bf-443a-988e-c449a8055734","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":165,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"4256783a-d406-46f6-8ed2-5e9a6456d140","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":165,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"f362b4c1-79fa-4ac8-a05d-bb1cbad2bc51","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":165,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"3db5329e-bc65-4a1a-8870-69629d7fca33","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":165,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"a5f29f72-01c8-48a9-9b58-bcb629e86182","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":165,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"8f6efae4-620e-42f6-b9a7-aba263a97a06","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":165,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"daa23c6d-2496-42da-814b-3dca44366f0a","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":165,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"970de819-868a-48df-a71c-8d9e21ca160d","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":165,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"339f3e69-3078-492f-835c-ea6f1fc4f868","block_type":"box","text":"Systematic Withdrawal Plans","page_number":165,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"b511a760-1ace-489d-8048-6f329d23ed4a","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":165,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"fb9c8a0e-5db2-40ca-bbea-02d71bc640b1","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":165,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"cd494647-815f-4244-9d40-b687d2222685","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":165,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"5145feb0-21b9-4627-a90d-195367f78bb1","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":165,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"77a8781f-cffc-4d49-b73a-bd51c6b1713d","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":165,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"5229dd14-e029-4c5d-b2b0-b8f2a8a37359","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":165,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"4348828d-eb37-46a5-9f33-7760d460495c","block_type":"box","text":"www.blackrock.com.","page_number":165,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"7d46da20-3194-4523-9df4-2de5c2f10f1a","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":165,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"70470669-3a7f-4662-845c-02412f347410","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":165,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"4bfb8991-62af-4a7c-854a-5ff05a64e0f4","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":165,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"8c9faae3-67e6-4d91-9497-ca087b4a10c9","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":165,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"87e38d05-2a16-4d13-897b-fb49ccd19714","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":165,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"0be107dc-ee2d-46f1-9dc3-d627469e012c","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":165,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"6e0d97f4-e008-45bf-ac70-dbac2bce346d","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":165,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"7dac5904-bb70-4d69-a495-4563f68023ab","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":165,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"c3963c59-10e5-435b-bf3f-2845eb6be243","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":165,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"42d82e8e-51df-4dc3-82f5-20a1f0607664","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":165,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"96d9fda4-51be-4fd4-aa31-208ce7edbc3b","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":165,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"cfdafcc8-d625-494b-a769-2f31ff0104f6","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":165,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"68b84abb-39bd-40bd-95ec-3412cbe5377e","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":165,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"0803b9a7-a10f-4e33-b339-4a3b95a15e71","block_type":"box","text":"Dividend Allocation Plan","page_number":165,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"a262b669-3c5a-41d5-93fb-1145193b5d75","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":165,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"214e1117-c204-41f1-93d8-ce27ba5c5944","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":165,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"5d214e44-e16f-4212-a913-b581adbc3b5c","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":165,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"136d27b6-955a-4556-be0b-36411fb612a9","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":165,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"400c25c5-726d-47b5-b432-937fc88269fb","block_type":"box","text":"II-121","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ca42902f-da7a-4135-8e7c-b8f92914f2eb","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42b982ef-8a03-4354-bb6d-fea6698a18b4","block_type":"box","text":"PRICING OF SHARES","page_number":166,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"8f56c529-3798-4ecd-a313-b310ff5999e1","block_type":"box","text":"Determination of Net Asset Value","page_number":166,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"2f9f9c0a-e815-4bcc-bc5d-cb603f28a03c","block_type":"box","text":"Valuation of Shares.","page_number":166,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"47e00d9a-8b66-4413-811a-72f1ba4f1d1c","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":166,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"1a22cb13-465c-4d5a-a5f3-247d94839004","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":166,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"b3879662-2550-4cfc-a5f9-b46fe6c780c0","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":166,"box":{"x":68,"y":128,"width":343,"height":12}},{"id":"0358fbf5-35d7-41d3-9e89-2a59a89eaf9c","block_type":"box","text":"Equity Investments.","page_number":166,"box":{"x":102,"y":151,"width":143,"height":11}},{"id":"e233b334-b75c-4601-a62d-34d0da98c18f","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":166,"box":{"x":252,"y":151,"width":439,"height":11}},{"id":"3739ea3a-d9c7-4603-a56e-db4247b0b01f","block_type":"box","text":"e.g.","page_number":166,"box":{"x":693,"y":153,"width":25,"height":9}},{"id":"7b119504-ec91-44e8-a651-4eb77332f7f8","block_type":"box","text":", NYSE), on separate","page_number":166,"box":{"x":720,"y":151,"width":147,"height":11}},{"id":"14328291-b0b7-4f5d-83a0-c6ade4839892","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":166,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"bdf3ab0b-2f44-46ce-9c01-33613b8ada59","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":166,"box":{"x":70,"y":181,"width":808,"height":12}},{"id":"03792f59-791e-4912-9b9f-e88153092479","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":166,"box":{"x":68,"y":196,"width":820,"height":12}},{"id":"2388d98b-afc9-4545-891a-fa42cfcdf811","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":166,"box":{"x":70,"y":212,"width":805,"height":11}},{"id":"fe0c6c52-54d9-4df9-a3b9-ba9f5fcf682c","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":166,"box":{"x":69,"y":227,"width":793,"height":11}},{"id":"33a1abd6-bf2d-4eba-9355-97b321763b95","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":166,"box":{"x":70,"y":242,"width":836,"height":11}},{"id":"a85ea87d-e3f5-49b7-8ff5-63538684e4c4","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":166,"box":{"x":68,"y":257,"width":815,"height":11}},{"id":"581db289-9133-4432-ae65-e4bb7669c51d","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":166,"box":{"x":70,"y":272,"width":837,"height":11}},{"id":"b589ddf4-e79e-4f4b-96c0-2a1987d67bd6","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":166,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"5c91fbb5-6a25-4525-9292-35ce248abbdc","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":166,"box":{"x":68,"y":302,"width":828,"height":11}},{"id":"f3491e10-1103-4033-a809-81861ac7824c","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":166,"box":{"x":68,"y":318,"width":819,"height":11}},{"id":"cf3182a9-8131-44d0-a8df-a59d9a2087a8","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":166,"box":{"x":70,"y":332,"width":798,"height":12}},{"id":"00e70475-fec2-4d1c-b5f9-7362cc85a46a","block_type":"box","text":"defined below).","page_number":166,"box":{"x":69,"y":348,"width":106,"height":11}},{"id":"ad81f077-c24f-4bec-8ab3-4dd90fd1aaf5","block_type":"box","text":"Fixed-Income Investments.","page_number":166,"box":{"x":102,"y":370,"width":194,"height":9}},{"id":"0292ab30-df37-4100-b63a-3d72da266c4c","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":166,"box":{"x":304,"y":371,"width":592,"height":11}},{"id":"e0a43865-b70d-446f-af90-cd1633f46741","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":166,"box":{"x":70,"y":386,"width":825,"height":11}},{"id":"44f7c44e-af2f-40bc-83a0-f074dcdeac4c","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":166,"box":{"x":69,"y":401,"width":823,"height":11}},{"id":"9319a355-949c-42af-9798-bf760dda4e19","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":166,"box":{"x":69,"y":416,"width":443,"height":11}},{"id":"8936eab6-a421-4539-9b73-33af492da65c","block_type":"box","text":"e.g.","page_number":166,"box":{"x":514,"y":417,"width":24,"height":10}},{"id":"4e4bbf5c-ef18-4764-a0ee-0ed4ea665f74","block_type":"box","text":", recent representative bids and offers), credit","page_number":166,"box":{"x":541,"y":416,"width":328,"height":11}},{"id":"b450b2f9-bfd7-45db-972f-24c0960f40ea","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":166,"box":{"x":69,"y":431,"width":834,"height":11}},{"id":"d8ad6061-5a53-436c-a665-9ce53e1c758d","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":166,"box":{"x":69,"y":446,"width":769,"height":11}},{"id":"446fda60-fe1e-4802-85d1-4eb6a3288269","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":166,"box":{"x":70,"y":461,"width":797,"height":11}},{"id":"21058bad-6c76-4714-894d-d1a923d6a97a","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":166,"box":{"x":69,"y":476,"width":821,"height":11}},{"id":"32298855-935c-40fb-9aab-8ee966cdaef6","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":166,"box":{"x":68,"y":491,"width":798,"height":11}},{"id":"8205ca4f-4422-47bc-9999-1fe89673f79e","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":166,"box":{"x":69,"y":507,"width":825,"height":11}},{"id":"349ece73-d4cc-4512-ae02-4a46be5c2aef","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":166,"box":{"x":69,"y":521,"width":791,"height":12}},{"id":"8f9bac50-42b8-4133-b202-ef1c0f356f1a","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":166,"box":{"x":69,"y":537,"width":814,"height":11}},{"id":"aaac0164-d81b-4369-9945-99781ef8eca4","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":166,"box":{"x":68,"y":552,"width":802,"height":11}},{"id":"3290ee81-ff5d-4cb3-9ddc-b9766b190424","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":166,"box":{"x":69,"y":567,"width":773,"height":10}},{"id":"5cda5031-dcb1-44e0-b779-f54f78740f37","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":166,"box":{"x":69,"y":582,"width":795,"height":11}},{"id":"866cbef5-cb28-4859-87fe-ebef9743248c","block_type":"box","text":"attributes of the tranche.","page_number":166,"box":{"x":69,"y":597,"width":176,"height":9}},{"id":"c8f1034f-4ff0-4f6f-954e-cd40e9c9f4c8","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":166,"box":{"x":101,"y":620,"width":344,"height":11}},{"id":"e1c75724-16e4-4296-bb49-0521f5c37e77","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":166,"box":{"x":453,"y":620,"width":416,"height":11}},{"id":"5394b1d6-7c96-414b-b797-226f9f9d7290","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":166,"box":{"x":70,"y":635,"width":829,"height":11}},{"id":"7df0bac0-0909-4746-a419-8bda6ac9c957","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":166,"box":{"x":69,"y":650,"width":824,"height":11}},{"id":"6cc55fb8-09e4-4e42-b1ab-e3b505e9093e","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":166,"box":{"x":68,"y":665,"width":838,"height":11}},{"id":"146537a7-0e52-4196-ace9-91165260689a","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":166,"box":{"x":68,"y":680,"width":820,"height":12}},{"id":"f77e1508-e00a-4b84-b691-655968d478b2","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":166,"box":{"x":68,"y":695,"width":808,"height":11}},{"id":"b7672c53-3fff-4858-8c82-ad5a1f5becd4","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":166,"box":{"x":69,"y":710,"width":824,"height":12}},{"id":"d2a1e98b-9147-48b8-af73-d34bd5b2d0b1","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":166,"box":{"x":68,"y":726,"width":789,"height":11}},{"id":"e7a11c54-2687-4827-b841-072e9858bd38","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":166,"box":{"x":69,"y":741,"width":807,"height":11}},{"id":"33e8a00c-20c7-49fe-bed8-41042e5280b3","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":166,"box":{"x":69,"y":756,"width":824,"height":11}},{"id":"b3760179-cec6-4e9e-b15b-2d349176c80d","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":166,"box":{"x":69,"y":771,"width":833,"height":11}},{"id":"02da4f81-d108-40e8-92dc-f1b4ad44d62b","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":166,"box":{"x":69,"y":786,"width":830,"height":11}},{"id":"a763513b-df96-43e2-b75b-0be0b32294d2","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":166,"box":{"x":69,"y":801,"width":301,"height":9}},{"id":"4df55dc9-2e4f-43d5-94d7-635026c7eb4d","block_type":"box","text":"Underlying Funds.","page_number":166,"box":{"x":102,"y":824,"width":128,"height":11}},{"id":"8bc5219f-d97a-4d18-92f9-07872e4d1886","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":166,"box":{"x":237,"y":824,"width":621,"height":11}},{"id":"482aa30a-8f27-4d70-8d83-f849c2be7f54","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":166,"box":{"x":69,"y":839,"width":837,"height":11}},{"id":"69fa71fb-88ec-4319-902c-b7526b046434","block_type":"box","text":"General Valuation Information.","page_number":166,"box":{"x":101,"y":862,"width":220,"height":9}},{"id":"97c6bbd6-14b7-493c-913e-b5e9b694f072","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":166,"box":{"x":328,"y":862,"width":564,"height":11}},{"id":"ccc41313-51fa-40d1-b860-fdaf30385490","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":166,"box":{"x":69,"y":877,"width":831,"height":9}},{"id":"8e928385-d551-4483-9242-67fa015c4b31","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":166,"box":{"x":68,"y":892,"width":828,"height":11}},{"id":"80af4a7e-e049-4b0c-9864-61f0bc0ea203","block_type":"box","text":"II-122","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1f4671a8-7223-4a33-a958-704800b93616","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c30f1981-f65a-4fea-92e1-a56fce40ce05","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":167,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"38707b75-0d7b-4268-96e0-83c868a9ef3b","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":167,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"9252fac9-9880-44b1-8930-b9f9c0b71c0c","block_type":"box","text":"the revision.","page_number":167,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"a056ee99-9473-4a92-b4e6-77540d6698ef","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":167,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"b4d9194a-a773-44ff-905d-accef8bf6731","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":167,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"35feb688-1553-40fc-b6eb-d48ebf532a72","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":167,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"48427777-5674-44bb-9d81-e3e28e2c79aa","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":167,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"bc5d8f51-b8f8-44bd-b088-6edd0ab39174","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":167,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"575674fc-5dfb-44a9-8915-02b291da50a1","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":167,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"c6f8657a-1e07-45a9-9e84-19e5bbe21220","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":167,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"4a7f95f4-5a6b-49a4-a965-42eb120fd4fe","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":167,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"f533a918-5601-4b64-ab4b-1fac6f710a34","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":167,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"d5653ae9-dca0-4694-ab18-c72dd2d0183c","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":167,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"653a54d4-cb9f-4d4d-98a7-536c08ed1f4c","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":167,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"825994c7-0e30-43f1-8945-864bf6c42f98","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":167,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"989f2c08-bd2f-46c5-aa4c-f839b03eff79","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":167,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"a0faf00a-2c5e-4ef3-9176-5ff419d6ca74","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":167,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"6522d45f-a722-4c65-b379-312577e38f16","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":167,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"cf48f5ce-4241-4856-8de8-41fb314b9f45","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":167,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"45c984f9-7d85-44b8-8596-bded5911af85","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":167,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"2791c18b-197b-4629-a295-f02c1c982d32","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":167,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"0e8a07ef-f801-41c5-8a8b-bea04be879ac","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":167,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"bd564aa2-3e1a-4fe4-a791-c4e026fa6cd1","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":167,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"af363340-e65d-4861-a241-45651147a1ac","block_type":"box","text":"Fair Value.","page_number":167,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"e07ee106-7248-4b90-afee-c3870d7d73c8","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":167,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"4f2c44e0-e7f3-46fd-a14c-d38e7e7778c5","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":167,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"2a57048f-326c-42ef-bb98-de14065fbd55","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":167,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"b7e91184-2da0-418f-afcb-b89814fee8e3","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":167,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"979149ec-527c-4946-98cd-532c0cb2f93a","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":167,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"4a4b380d-bd33-4cfa-b044-a52601af933b","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":167,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"1142d267-dc23-41a4-a8bc-7b202de3a20b","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":167,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"15497fcb-8da8-4ec9-8ee9-1917cc40f4ad","block_type":"box","text":"(","page_number":167,"box":{"x":69,"y":529,"width":3,"height":10}},{"id":"485355da-9bff-4968-989d-46ef290ae934","block_type":"box","text":"e.g.","page_number":167,"box":{"x":74,"y":530,"width":25,"height":10}},{"id":"a2f1538b-d9db-447d-a3ec-5567e85dced1","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":167,"box":{"x":101,"y":528,"width":806,"height":12}},{"id":"a20e33c5-4dbe-4571-8f0d-2956b1474110","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":167,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"6a129259-fae3-43e1-886c-1ab316866367","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":167,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"8aefdd1a-a886-4bf2-a082-bf84f6aa9e03","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":167,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"39616425-7d4b-47d4-a205-d5ccef769d75","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":167,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"6812d66c-b6d2-45cc-9c4c-12b8dd984766","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":167,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"6a189680-2301-406d-9f3b-27918d49e1cb","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":167,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"09fc2b61-41bf-4e2f-8d38-4c14a275d3f1","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":167,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"59f8c3e5-8430-458b-8e88-91e3038a4887","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":167,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"69b25348-7a0b-4201-86a1-a29c1b044422","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":167,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"cc63dbac-9ffb-400f-a392-da2899e36909","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":167,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"22c3ab37-8089-4507-addc-f48b0d16597c","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":167,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"42383aba-324d-4c69-8e29-1a1f47260d29","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":167,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"360f5d5f-86b6-4d1f-a01d-6357ee17d4aa","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":167,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"ac78d53b-255d-4d4d-9700-07491968e42c","block_type":"box","text":"pricing time.","page_number":167,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"3b4ff9ef-d54e-42ed-9ed5-3cf547763a22","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":167,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"dc3b2b8f-fefc-4bc5-ab6b-afd71976edd8","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":167,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"7968957c-6f76-497d-bbb8-c5ab7bcebe31","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":167,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"3c896951-d4a6-42c3-98a2-b948673f0804","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":167,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"a69d7a97-a15b-4e01-a927-f2da58d90c99","block_type":"box","text":"assets and liabilities of the Funds.","page_number":167,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"f5041f2a-d139-4f63-ae0b-a34abc776710","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":167,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"f7a8adbb-f970-45c4-bc48-3adb668049c7","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":167,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"8797c1ab-a225-48ae-92bb-2aef6996e14c","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":167,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"13c52e6d-8bba-4cb0-a3b1-f960319aa60e","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":167,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"f85d1cc8-a5b9-4bd3-9f84-d933a12e321d","block_type":"box","text":"II-123","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"755963fc-69e5-4844-b168-73be8ba98282","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9704ff25-b053-49c4-ae72-18ca7dc3b88e","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":168,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"e8698ca3-d03a-458a-9c96-d72280f9ab2d","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":168,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"c122b9e1-998c-40d3-a37a-c54bbd3dac4c","block_type":"box","text":"valuation models.","page_number":168,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"9c188578-ccff-4e78-ab48-7ab3f515d9e8","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":168,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"bb2b9bb1-9742-4c80-9d5f-59751c9f751e","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":168,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"0d76b223-648b-4746-a38c-e83a907b8e1f","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":168,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"3f60b122-c33c-47c5-9ed0-708ac4bc260e","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":168,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"299b6620-30be-48d2-8bdd-4862c0108db0","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":168,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"a01f8697-2c41-4362-8537-204493af3799","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":168,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"e06a48c1-d3c4-47f6-9524-b95fb5171880","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":168,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"7928b201-6b77-488a-9e8b-6f04863850ca","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":168,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"f9db5757-a17d-41fa-8bc7-26eed2d28da9","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":168,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"df45a033-17fc-4359-8dbe-c7eb2c86b814","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":168,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"ea0c6d3e-0fa6-4f36-8280-c262209d9ea2","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":168,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"754a22b6-bc37-429e-a91e-922a5d99f0dd","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":168,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"8994a636-02e9-4b07-94e2-70f8495e6b91","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":168,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"7603e191-f1b4-45b0-abe1-1931226e6942","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":168,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"5917e30c-adb6-4f34-9437-55f7e58de7d1","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":168,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"07890570-e041-436a-9547-9cafbe7e8e1d","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":168,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"48f57c9d-cb5f-45ab-bd92-4a748c45138f","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":168,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"f1891853-ff9c-4a52-b070-2fb8f5134274","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":168,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"31ac6626-36a1-482d-a5a8-b976e576750d","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":168,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"5b2eaba9-8359-48ab-a8ed-b91276046d56","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":168,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"b6048ac3-4819-4155-819e-147a8ddb805c","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":168,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"bef45468-5fc6-485e-9b64-d56112bf72db","block_type":"box","text":"par ty determination of fair market value.","page_number":168,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"3d402653-ed13-4a44-9626-ad9d6ac4aa85","block_type":"box","text":"Computation of Offering Price Per Share","page_number":168,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"9e8e3476-600d-43a9-b10d-6a0020be717a","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":168,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"232376e8-7960-40d9-b86e-305afb49c7c7","block_type":"box","text":"the offering price for shares of your Fund.","page_number":168,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"78b6b6a2-ebc9-48ce-9f3e-037bebb65406","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":168,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"06dc2d67-ea40-4c0a-9343-8b60813bc803","block_type":"box","text":"Transactions in Portfolio Securities","page_number":168,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"478adb89-fe07-414a-b698-b0a32b31c54b","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":168,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"aa40b10f-cbd7-42e4-8ff9-bb409312c5c7","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":168,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"a01add5f-cb90-4e51-a7c2-fd319c88b7f6","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":168,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"6d34bfe7-7b25-4611-b7d9-08c6d33e003a","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":168,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"e9645625-9a73-411b-806e-f0a4a53cebb3","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":168,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"ce959cdf-8502-4aa2-94d8-9056123eb58d","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":168,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"d50043e9-e4e5-49f2-9127-91e9fd5ab355","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":168,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"9306e0d7-0995-4f97-b421-ff02da0fd4fc","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":168,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"5b84805d-cfbf-4755-928d-76ef75c6d7aa","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":168,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"0c754241-fa3a-4219-a6e6-775d70092e3c","block_type":"box","text":"reasonable in relation to the services provided.","page_number":168,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"d23b88a6-db95-4450-a5c8-0c17a3b023c4","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":168,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"b1a17988-5d77-4961-b474-9f2f61239647","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":168,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"71372747-483d-4e8b-8f4f-af974017e765","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":168,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"85677b27-89ae-43c6-91ce-e08968b08121","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":168,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"f065f912-721b-4483-808c-e8a44c82f942","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":168,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"125da5f3-1395-4ba6-a700-960eb2803eac","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":168,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"515cc733-ff96-4868-a39f-fedf972d0df9","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":168,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"70df83e4-5e38-486d-aa44-88e68fc90184","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":168,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"bce95e3c-95e9-4d1a-9d89-c668db7399c8","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":168,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"8bac73e3-8b36-4e2d-9ab7-893523cc2d11","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":168,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"5cc55160-676b-4c33-b288-f6c31faecec7","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":168,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"12b5767b-0a74-4c23-8a37-1f2ebc0ef6bf","block_type":"box","text":"II-124","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2e85d4dd-bd23-441a-b218-6645c6d9e36a","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5fc29175-5294-4755-910b-f4398deae00f","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":169,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"434ae1a5-b6dc-4796-9c36-1a98c129d6af","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":169,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"29c50124-7f69-4f0b-89f7-b79e24140859","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":169,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"7ab7985e-0082-4925-a8ec-e08180b195aa","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":169,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"2a69dd09-2d15-4954-a2c7-389007b0f5f8","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":169,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"b0d0d84c-e6d5-40b4-9133-544729ca9daf","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":169,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"9f38a1c2-2654-47ed-9580-8a9c61b324bf","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":169,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"54829f2d-f2ff-447e-b635-b435b68897d9","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":169,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"11400d2b-797b-453d-964e-38411547ca00","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":169,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"0d73524a-d0f5-494f-a21e-ae404a6d716d","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":169,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"b7ade0f7-0ae4-443e-926b-7865ff7e446b","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":169,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"f8aa17df-1c75-443a-adf2-9a02581143e3","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":169,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"a2349f5a-1b42-4579-a68c-e101678638ee","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":169,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"bdffb9df-3618-447e-b1e2-def7949bc3ae","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":169,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"3747ccc5-88d1-462f-9ec4-91a48d6f4b49","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":169,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"eabf6792-7bc6-4078-8f99-9601b39f703a","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":169,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"a340ff26-8016-419a-a68a-1d7a215bb6ad","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":169,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"25b1ef34-35a1-4de9-aff5-d5f4e7d5dcb9","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":169,"box":{"x":69,"y":309,"width":808,"height":11}},{"id":"fe620265-1ff0-4673-92d4-c27e43ded232","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":169,"box":{"x":69,"y":325,"width":818,"height":11}},{"id":"f079ff3b-b4a1-49ee-bd7f-d02b05e89b43","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":169,"box":{"x":70,"y":339,"width":813,"height":12}},{"id":"566c6d7f-1dfc-4d99-bf45-bbdd0f5b98df","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":169,"box":{"x":70,"y":355,"width":801,"height":11}},{"id":"2cf2348d-6f98-414b-a7fc-d9d484982118","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":169,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"39909d9a-1cd8-40ea-9f7f-31d78c818454","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":169,"box":{"x":69,"y":385,"width":790,"height":11}},{"id":"cf9882c4-50c0-4d79-b742-42ca51353a5e","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":169,"box":{"x":70,"y":400,"width":361,"height":11}},{"id":"af7ebdba-d0bd-487a-aedf-6b595dcd6c9d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":169,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"e1ac9ce4-b86a-4857-97a6-2ac6e231cd94","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":169,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"3a729b18-334b-4242-a5f4-008c67a24a77","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":169,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"3dda3a61-4786-41ac-955d-cfa893baf891","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":169,"box":{"x":70,"y":468,"width":785,"height":11}},{"id":"cc1ef536-7ceb-420e-a3ec-5c75ca805575","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":169,"box":{"x":70,"y":483,"width":806,"height":11}},{"id":"8fba2780-0371-4e55-8a3c-44619767cfd2","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":169,"box":{"x":68,"y":498,"width":772,"height":11}},{"id":"e91b36bb-cd96-4ab8-9ab7-4ae5c1638b23","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":169,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"bdd05742-2b90-429f-be9d-1f7e4d5bb937","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":169,"box":{"x":68,"y":528,"width":769,"height":12}},{"id":"d0a0a192-efb7-423c-9985-391b00883211","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":169,"box":{"x":69,"y":543,"width":801,"height":12}},{"id":"cafbc311-f2d5-41b0-84bb-e5d2af2f2567","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":169,"box":{"x":69,"y":559,"width":778,"height":11}},{"id":"5993c0ea-8bb6-451d-ade0-335c2e0e3b4d","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":169,"box":{"x":69,"y":574,"width":363,"height":11}},{"id":"226816b8-bbd9-4496-b7ef-d24eb278f1e8","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":169,"box":{"x":102,"y":596,"width":749,"height":12}},{"id":"774312c2-de6c-48ed-aea7-adf091a4a202","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":169,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"4a3b9cbb-a17f-449e-91a1-4a6c60c8850e","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":169,"box":{"x":70,"y":627,"width":752,"height":11}},{"id":"5cbdfe2f-0774-469d-96d1-2dd162f57546","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":169,"box":{"x":70,"y":642,"width":823,"height":11}},{"id":"f5c9455a-708b-4b72-84e2-5781ddb37823","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":169,"box":{"x":70,"y":657,"width":822,"height":11}},{"id":"d1343fa0-975d-4d69-a9b3-14ce3b234616","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":169,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"6f68c2e6-8242-4b4f-94be-e7d4ccb981c7","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":169,"box":{"x":68,"y":687,"width":805,"height":11}},{"id":"41164cbe-2f2b-4e6e-8976-41966646c5c0","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":169,"box":{"x":69,"y":702,"width":798,"height":12}},{"id":"bc204127-1dae-4571-9ec1-db8176e85d37","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":169,"box":{"x":69,"y":717,"width":836,"height":12}},{"id":"83f546a4-3f2d-4e54-86e7-7ea2cae990fc","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":169,"box":{"x":70,"y":732,"width":832,"height":12}},{"id":"c4cd44ba-a3b4-490f-91f2-3005337122d3","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":169,"box":{"x":70,"y":748,"width":798,"height":11}},{"id":"50e437c0-13e7-454e-a6ec-9beb6e92a6eb","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":169,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"f9d6cbf3-5479-4eeb-9959-ce46f6a6a87d","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":169,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"d640a759-8321-4bf7-9d8b-728bc222721d","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":169,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"98ec76dd-93fc-4c30-87e6-4e38721082ed","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":169,"box":{"x":69,"y":808,"width":797,"height":11}},{"id":"a35ee57c-56a6-4616-8107-c13bd957e649","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":169,"box":{"x":70,"y":823,"width":815,"height":12}},{"id":"430e7161-09ec-4184-9be3-20cef34b38e6","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":169,"box":{"x":68,"y":838,"width":555,"height":11}},{"id":"cf44a5ea-900c-4fbf-8455-8a5c59b8bb3d","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":169,"box":{"x":102,"y":861,"width":802,"height":11}},{"id":"f6ad3dc6-70f6-4676-89db-d207baa86ab5","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":169,"box":{"x":68,"y":876,"width":825,"height":11}},{"id":"5f66f999-3f4d-46d0-b249-543998a47144","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":169,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"fb1ca6fc-d7a5-4933-853d-7819c7d43f32","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":169,"box":{"x":68,"y":906,"width":824,"height":12}},{"id":"93df158a-4114-449f-bb7a-b32565ae93ed","block_type":"box","text":"II-125","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"14b36a86-7d5d-4c3f-b544-bdc796e53b74","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4455297-ccdb-41cb-af67-5f00cf9fb66f","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":170,"box":{"x":70,"y":45,"width":812,"height":11}},{"id":"a47c543a-676e-434a-895f-a91c572f8335","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":170,"box":{"x":69,"y":60,"width":547,"height":11}},{"id":"edcb034f-0438-4f0c-9989-c3393d7c6af2","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":170,"box":{"x":102,"y":82,"width":804,"height":12}},{"id":"92564cb5-c445-47ab-93b7-7a32b1773a8a","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":170,"box":{"x":68,"y":98,"width":806,"height":11}},{"id":"a6b92ef8-4f7a-439e-9cc2-258419e8202b","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":170,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"938ee2fe-96b7-4886-ac50-bb46ac260b45","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":170,"box":{"x":70,"y":128,"width":777,"height":11}},{"id":"064640d0-c8b1-4a47-bd85-4bb5c38eee36","block_type":"box","text":"brokerage.","page_number":170,"box":{"x":69,"y":143,"width":74,"height":11}},{"id":"afb3dd75-9765-4c52-919a-95ee44db9c20","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":170,"box":{"x":102,"y":166,"width":781,"height":11}},{"id":"79379e5b-4b26-42ac-b750-0061a60b1067","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":170,"box":{"x":68,"y":181,"width":810,"height":11}},{"id":"d555114c-01df-4c46-ad45-8b898af550d5","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":170,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"3871d2d9-1b40-43b6-af08-433869cad808","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":170,"box":{"x":69,"y":211,"width":818,"height":11}},{"id":"e219ffcc-09fe-437f-9f28-3c054bd5ae22","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":170,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"aba02490-7f5d-4152-9112-36261de743f0","block_type":"box","text":"Section 28(e).","page_number":170,"box":{"x":69,"y":241,"width":99,"height":11}},{"id":"fc7105e7-5822-4254-9e5e-8369c0fc41b5","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":170,"box":{"x":102,"y":264,"width":755,"height":9}},{"id":"cbf89e97-1038-4265-9ac6-44a17cf5cfa3","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":170,"box":{"x":69,"y":279,"width":828,"height":11}},{"id":"022c39bf-6bbb-4ee5-9ab6-8ce552421f82","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":170,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"c6a46918-fa3c-4f31-9b3c-b3e849370726","block_type":"box","text":"execute transactions for those mutual funds.","page_number":170,"box":{"x":69,"y":309,"width":319,"height":9}},{"id":"e81dd819-ff57-4d86-87ae-0dab9a19add0","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":170,"box":{"x":102,"y":332,"width":770,"height":11}},{"id":"55a659a5-226b-42ed-b618-b71be18b0b68","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":170,"box":{"x":70,"y":347,"width":825,"height":11}},{"id":"43d1cef7-c665-41ea-a12d-54073725aea5","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":170,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"83c2ff05-8526-4931-8b64-d9e7dec364b9","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":170,"box":{"x":69,"y":377,"width":805,"height":12}},{"id":"96ef6d64-d40d-462f-8ebe-9bfa69748fcf","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":170,"box":{"x":68,"y":392,"width":773,"height":12}},{"id":"3f3cb772-5e66-4b43-8768-85bfd4f6751a","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":170,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"287b0b13-724c-4f46-ac8e-e031d25c8e80","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":170,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"b4991a79-da2e-498f-b02b-d6ced463125d","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":170,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"a111b740-22b8-474f-8f13-5704dcf40d09","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":170,"box":{"x":69,"y":453,"width":540,"height":11}},{"id":"c03eec82-9a76-4cae-a161-f76be6b8f880","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":170,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"6236221e-6ddc-4a23-bb33-f24d7a5f350c","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":170,"box":{"x":68,"y":491,"width":597,"height":11}},{"id":"b08aa066-42bb-4c7f-b02a-f5e25092842f","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":170,"box":{"x":102,"y":513,"width":802,"height":11}},{"id":"09a667ec-64e9-424f-827c-f3967700e323","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":170,"box":{"x":68,"y":529,"width":822,"height":10}},{"id":"562387ae-e9a4-4952-959f-4c549d0f5622","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":170,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"dc8c2c0c-51b7-42a7-82ca-05e7a99ef78a","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":170,"box":{"x":69,"y":559,"width":832,"height":11}},{"id":"823a36df-d0d4-42bc-b8c0-cc5270fa3410","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":170,"box":{"x":69,"y":574,"width":762,"height":11}},{"id":"3d524dd9-26f7-45d4-9d74-b1be03897b3a","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":170,"box":{"x":68,"y":589,"width":770,"height":11}},{"id":"5b333df6-6c74-4e0e-97c8-c9f1366e1169","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":170,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"52be357b-556a-4cd5-b847-4e1422b28af2","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":170,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"fc5bf022-728c-4626-9281-41f3076c0099","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":170,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"cba5354d-3605-46e1-a821-da9ea85656cd","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":170,"box":{"x":69,"y":649,"width":645,"height":12}},{"id":"8944621c-4835-4541-a094-8425d2159888","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":170,"box":{"x":102,"y":672,"width":797,"height":11}},{"id":"205857f0-f297-414d-a271-5a233ad3eaca","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":170,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"0e913308-0ab0-4185-aa84-24d0c3a5aaf9","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":170,"box":{"x":69,"y":703,"width":839,"height":11}},{"id":"bd79cb8a-8116-4a42-b489-fc437fb9b756","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":170,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"f7d347f0-b2b4-4e73-a399-1012f922ddde","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":170,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"31dde715-4cd7-410e-928a-932e39bd14ae","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":170,"box":{"x":70,"y":748,"width":730,"height":11}},{"id":"1097de9a-47a2-4234-8712-5290faa26798","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":170,"box":{"x":102,"y":770,"width":800,"height":11}},{"id":"ca2b577d-164f-4b23-a37d-58849cd3dc02","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":170,"box":{"x":69,"y":786,"width":807,"height":11}},{"id":"a50b34bb-9403-4928-a9f1-5896a8fb4f0e","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":170,"box":{"x":70,"y":801,"width":812,"height":11}},{"id":"ff890103-4cb8-4643-bd53-a924824dc444","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":170,"box":{"x":69,"y":816,"width":807,"height":11}},{"id":"539513ac-bacb-435b-9a35-873fac8b9a5c","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":170,"box":{"x":68,"y":831,"width":827,"height":11}},{"id":"016b19f7-8d8f-48f3-90fa-d2f071fc3050","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":170,"box":{"x":68,"y":846,"width":817,"height":11}},{"id":"5a4efc32-34a6-43e9-acb6-03c9c4b1bfe0","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":170,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"4b0bc75c-73aa-455c-b960-ff7811d08f72","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":170,"box":{"x":69,"y":876,"width":700,"height":11}},{"id":"4e068725-9157-4f1e-a7aa-9e935871d722","block_type":"box","text":"II-126","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d474656-8568-42e0-889c-e7e0bd178340","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7883ae91-51e8-4353-b408-67065630defb","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":171,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"f0c95701-41d0-4eb8-b4bf-8e5c50f8e710","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":171,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"9383a471-6c91-4114-a8f7-8cf7ac56c4a1","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":171,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"375ba73b-2b6b-4ed8-8379-c42de2f70d5a","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":171,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"1b764698-8939-4b4b-a68c-e8e937d011b9","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":171,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"c1aa2e45-a5c1-4679-8435-6c9fa8ea5f6c","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":171,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"630eb59f-e0e9-4105-8dbc-c7c235d0f5aa","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":171,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"08ccc4c1-7775-450f-87a3-c184787c9b18","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":171,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"def278c8-b3f5-427d-9933-4a4f2d55b3ba","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":171,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"9d0958fc-4fb7-46ac-837a-37189222bb60","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":171,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"05c9f19a-4a6b-476b-9b46-3a06e2f2c2c6","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":171,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"ab754335-1c93-4214-acb5-79a3f1f7a88a","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":171,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"2a183815-2bf5-42db-be68-4a8bace1e923","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":171,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"b8562ee2-f2a0-4485-9af0-85161f300822","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":171,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"242dda7a-b2cf-4f8e-9c44-573eedf733e5","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":171,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"e47d204d-ff41-4e7b-bb24-197c56261504","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":171,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"e03ac4ac-8263-43d7-8593-fe584cd6fcd7","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":171,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"ddc90cd9-bb4f-4e52-9370-ad9431864996","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":171,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"da8a955c-0a3b-4ee7-a5f8-9a84b71be565","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":171,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"0e297764-2a2c-491e-9d97-a91ea96c5a55","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":171,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"205daa2b-d4c9-4f07-b673-144cccf700bb","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":171,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"9b79f679-9ef5-4ab3-88b2-0983fe862946","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":171,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"313f8218-e10d-4cfe-9983-b57fdca13fed","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":171,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"c6f06e8c-9842-4992-9b5b-f085a7cf73b1","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":171,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"f2dd84d7-a031-471f-a947-9dee9d8f9a1c","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":171,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"a5e8d18a-3479-4c8a-a9bf-c84ea7d9272c","block_type":"box","text":"accounts and compliance constraints.","page_number":171,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"ad8c164b-049d-4080-b597-a982323604fd","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":171,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"de8bbc1e-9825-4f9a-ac36-286248d3801b","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":171,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"b50275e3-441f-4a4f-a6c6-0e43663412a6","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":171,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"1822552e-656d-44a0-a1ce-95334fe851f6","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":171,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"1e0f504c-5353-48e3-9e15-8055c00bb3e3","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":171,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"677c2bc5-d445-4197-83c7-d91c79bcc70e","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":171,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"927514cd-8645-45d1-af3a-0b71bf6cff08","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":171,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"6ac26378-caf9-41e0-ab01-65f1d45c1db9","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":171,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"b371647a-d983-400b-97b0-cd6da11894a2","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":171,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"ac2384d5-f141-4def-981c-c3d204e5c273","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":171,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"5a144c24-1870-49c4-bc6e-b4a96418c982","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":171,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"a67a2f41-1208-43af-a0be-99a7d9dde1e8","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":171,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"4832df79-d5c8-4cad-8d9b-6a2402eae95a","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":171,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"f8574093-a653-486d-b983-5fdb90c91aff","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":171,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"964dbb8b-17a5-4d4b-9db4-38f122951b14","block_type":"box","text":"clients may be used as well.","page_number":171,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"bc43e93e-cd53-4f5a-914b-861432c2e6c3","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":171,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"4091aeac-3c41-44ce-8e1c-a9754e687b05","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":171,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"23122535-4893-408f-a18e-11bcc2c02f36","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":171,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"b086e638-9f0f-400d-8f8a-4e4777c22e0e","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":171,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"59fe6e12-f993-4213-8361-b69d8fb80d40","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":171,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"e6a8f0b4-d6c8-40cc-b9a8-bf9fb42e8f9f","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":171,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"d3b99e6e-7fb0-48d7-9543-fff87d022dba","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":171,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"753473c4-8a19-4ae4-adc9-b3f019e4387c","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":171,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"02aef37b-da7d-46db-9bfd-7d749f3d0372","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":171,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"75f3d513-96d2-4425-8bcd-746223c44402","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":171,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"606003d0-d73b-41f5-a49b-0907409a4c77","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":171,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"7783c0e2-5005-4e68-9544-745eb5389a10","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":171,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"de05c819-4009-4978-8e08-e12fe7faf5de","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":171,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"0ead3522-a7ec-43d3-8dd7-6c0b121bbcb4","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":171,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"8cc2be47-7970-48a8-a5de-a17c3b49c25b","block_type":"box","text":"II-127","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"90a5b7cf-4fd2-44ac-9725-62ec72b3cbb7","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"397f9ac8-3272-4ce4-87ef-63ec1efa9744","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":172,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"2f7e0e80-94ec-4743-a381-c6b72af2e8fc","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":172,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"1be17ecb-f635-45a3-96af-75e2be887d62","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":172,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"4a0116c6-348d-4fac-b8b3-ac6da08f4fa7","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":172,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"6c2978fd-f2d7-49a5-a63a-e5dd6af33c70","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":172,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"8828c463-d602-4805-a058-e0a7796437ee","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":172,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"70bee2de-6db6-4ffd-b0ce-cdd4c8159580","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":172,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"f1fedcf6-321f-4301-b53e-202ab28b63f4","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":172,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"cffbbf1e-1260-459a-84ea-5c1fa9bfe874","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":172,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"5b4917f9-aec1-43eb-b458-cdb3f3bcf0ea","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":172,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"9b81e301-5365-4c7e-8d35-21c4164ffeac","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":172,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"1cc2f412-8d1b-461d-b8da-d2343adda882","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":172,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"d1ba9a28-25ce-4f97-b7a7-43e9ed8a0dc4","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":172,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"3a0db0ec-4e08-4375-9b6d-c762f60f7a24","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":172,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"eec9deda-5423-4b64-840c-d9f03e02bef6","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":172,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"cff08f82-353b-43ac-a872-1d4bd74fc63f","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":172,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"eab01708-3162-4544-b4b9-8e61da37f11d","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":172,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"2dced936-a8f1-4605-80da-0ae0bcb0a614","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":172,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"8bc29114-5c89-4ac6-9ebe-9a99527e73d7","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":172,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"4cc06dc1-3e2a-4acb-88f6-5ce3090b5773","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":172,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"a9ba5007-0414-4436-86ed-b6e23a87a441","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":172,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"759892de-e5f6-4507-9e86-4656b5f23242","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":172,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"3afbede3-5ee0-444a-854f-0b786683b5d8","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":172,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"6a387600-66c5-4536-9e86-e0b92543b440","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":172,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"8215eb57-0df0-4021-abd8-2bbb5a2d15d9","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":172,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"6c27225b-8dba-46dc-ae85-d8f46d73dc0f","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":172,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"7b6b65a4-143c-4490-8127-a666e0aa0e9b","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":172,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"14559053-457e-4046-8b16-dd3a3734e664","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":172,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"86652a76-1c75-4661-b324-bc4554203c65","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":172,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"0746f0cc-2cd5-4f50-b538-86fb3a961350","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":172,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"2f32b32a-6761-4213-9dbd-f6185b62d7c5","block_type":"box","text":"Portfolio Turnover","page_number":172,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"af29109b-b28a-412a-ade3-6afaf06d2c02","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":172,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"bca96bf1-8c21-43ec-a0ae-0ba5ce48f559","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":172,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"7ec02a56-d899-4342-89b2-7744db3eb0de","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":172,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"7d7f466c-7f41-4c61-8300-3dda05cc5de5","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":172,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"f976d0eb-3405-4191-a81f-25473d4f6f45","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":172,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"cc1d2d3e-a094-4e03-bf9e-939022135880","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":172,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"6069d4e4-8865-4535-89b4-86ffafe0bf54","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":172,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"6e896eef-38f8-49dc-b5bd-74b17d080a5d","block_type":"box","text":"Dividends","page_number":172,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"4affa26d-24f4-407d-822a-be47aa8c5ab4","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":172,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"ef880552-80be-477c-b139-7beb6fd7a8ed","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":172,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"99e7c937-3841-4268-93e5-d8a924926e44","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":172,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"4850a678-65a4-47c8-8f5c-b33485b9deb7","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":172,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"42449f80-32f0-4d71-9805-388b25fcf369","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":172,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"e608e1d0-05b3-49ab-863b-10055fb7ee8c","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":172,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"2e3786ef-38b4-48b5-a08c-fbe71515f813","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":172,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"478b4e41-244b-4b17-93a8-0356648edba9","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":172,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"9b04e881-f34a-43a7-a73a-14d77d1448f7","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":172,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"78cdc68c-f1a3-4b5e-8f70-85e9f32b6647","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":172,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"4457b407-2006-4487-8dce-87b9733dd253","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":172,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"f7343cc5-b96a-4d1f-8317-916519245f07","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":172,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"dfdf6635-3abd-4e39-8f75-0e95356dc1e2","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":172,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"f2ec2ade-a335-47e1-9549-635df28c33d9","block_type":"box","text":"II-128","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0a7b8e0c-a363-4d2a-bc2d-edfaa1a0fcba","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a93b876-a2f7-41cb-8611-c6fd8de7cd4b","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":173,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"90b05bf7-dbd4-439c-a5fd-3070e81260a6","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":173,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"8b889b68-de86-41a9-bd6c-dcc19ab4dcd0","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":173,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"da10388d-1b9e-4772-927c-0c09a4ec44cd","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":173,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"50ee2f2c-b3de-4019-888f-e0a60d69c7eb","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":173,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"12a1759a-91b8-497e-961b-72bae10acd83","block_type":"box","text":"Taxes","page_number":173,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"54ce27ca-7568-4584-9ca6-7395f94bc602","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":173,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"82ac0532-1f87-4943-8da8-3323602487fd","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":173,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"c5eb10fe-52e6-460f-b6e9-d32731118c9d","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":173,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"f5bbad70-045f-43fc-aa78-9450cf485e16","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":173,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"21f8c306-dff9-48b5-845b-bec664fec71a","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":173,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"a6c36c39-8838-46bf-899e-2c7d7d9d526c","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":173,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"9e187e42-ef3a-4794-8d7b-a61da8fce9e6","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":173,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"0344e0a2-1fd3-4801-88e9-e7acab1ecd40","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":173,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"0dd85bad-5925-4b6e-9a9d-249dd975b0b8","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":173,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"bd0db2ae-d697-4351-8561-3a7aeb30a372","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":173,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"2b721001-0e2d-4133-9d95-5dc703c15bc5","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":173,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"37bfc9ec-7da3-497e-b271-645ff4413d0a","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":173,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"184ba6d3-2865-4acf-89a6-f4122cb8749e","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":173,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"f682f73a-49d0-43cc-9122-9f539e6c39d9","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":173,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"8d56bbf8-de76-4ce8-bf42-45c2aa1376fa","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":173,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"8ecb4023-e989-41eb-86b7-05ed4b4d33a7","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":173,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"ebee16e7-c68d-4752-b028-09a9941cbb9a","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":173,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"fe80dc9c-caa8-420f-8df7-b5b807b4ee2c","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":173,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"a140cfd4-0303-411b-bb0e-65b93cbe302b","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":173,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"8b325494-0fc3-412e-9b84-f88661bb0ced","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":173,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"4080d577-e9d7-4879-9dcd-7fe3a0f37343","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":173,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"b3fe2f98-8f04-4c30-ae84-5e002ed6d0a4","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":173,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"f2d72ba0-676a-4abe-9c05-075701d7d5b8","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":173,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"81d8f0da-e27c-4bc4-897d-d854e6d7d2ec","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"fa2e1089-52c2-4b5b-8154-1c6b3f40de73","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":173,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"a2cc58b1-0b30-4dfb-8d1f-75361830ed6b","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":173,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"c3bea637-fa13-4d49-86ba-41a1ddb01805","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":173,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"f263c44e-3890-48cd-9281-5a6726fb747f","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":173,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"4bf13437-2f1d-48b1-8b6a-936ae93aa5c7","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":173,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"5428b782-53e8-4821-a2c5-c358960c4135","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":173,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"704ec90c-eddb-4375-bf7e-d473af7554e0","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":173,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"87a3c198-0e7e-4184-99e2-92ab2da6342d","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":173,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"1c6223dc-b70a-4be5-9b96-b51ee627b98c","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":173,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"5172e078-ba61-4c87-8dfd-2aed16be57b8","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":173,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"dd93f6b6-11a2-4cdc-ab87-d8091373e465","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":173,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"7518c4b7-af7b-4b00-a418-660ca67ef6a5","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":173,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"ebcd7688-3348-487c-9125-1cc855cb3847","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":173,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"b00b5479-16ee-4c3d-bdfb-4253a4cb3561","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":173,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"e219a4c1-0656-4df0-8760-ada4e702f0ac","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":173,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"fea80d2e-7d0c-43df-86d1-cf80231bbc50","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":173,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"81e5f1bf-55b2-43df-8b6c-ed987080bb5d","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":173,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"cdc3c1cb-75a3-4496-8047-be848bc34475","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":173,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"4500a0ef-7f0e-4ac8-872f-4e0497a8c07f","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":173,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"1c2855f1-3881-4ba3-aa00-be99adf1e4e1","block_type":"box","text":"limitation.","page_number":173,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"b775fcfe-32de-44fe-9326-de9adf2d99b2","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":173,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"ffd0bab8-27fc-4fb8-92d9-34d93ee34a79","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":173,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"4e70db99-b84e-4c3f-9bf0-786155d572a8","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":173,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"780e99d9-ee8a-4072-a30e-d5e9fe7ecc78","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":173,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"2682ea7b-1423-46b2-888f-67ff9d79d7b0","block_type":"box","text":"II-129","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"74820c09-bb64-45f8-90cf-25c68ca0449f","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a67be066-2b69-47ff-ac17-bae78ef1334e","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":174,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"9e58a9d3-ec13-4d1f-8a63-38de0fd334e0","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":174,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"3997c016-86da-4429-8d8f-7b598704e0c4","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":174,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"0807389c-7e67-4049-900a-663671b35853","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":174,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"183f5f80-b106-48ad-b3ef-c93df55f3552","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":174,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"17d9d536-df46-432b-9321-932f2d42046f","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":174,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"b121b393-0106-49ab-a233-bf065d6f29b7","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":174,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"a2a11d70-463c-4038-b5a3-6c0d17513e99","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":174,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"e53d1013-3cb7-4cc5-b3a5-5b68e9c00cbd","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":174,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"a2becb55-beb3-4a14-bf67-fedc43e23c4c","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":174,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"b2b1f11d-749f-4dd3-a851-715304c4fdfa","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":174,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"8756627f-e514-428f-a2c1-86a79f180850","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":174,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"f74bdc99-c01f-4dd7-9b87-e0c99456f0a1","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":174,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"ea7e57a6-96a5-4f3a-82cf-f9c070088e9b","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":174,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"d21ed00a-a09a-43a1-bc39-fdf17396da1d","block_type":"box","text":"constitute “qualified dividend income.”","page_number":174,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"30038d80-3d1d-4fbe-9ddc-8abe0517fb61","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":174,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"ceb6703d-5ff1-417b-b081-e3b6d81cdcf3","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":174,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"ab755ee6-8594-4d4e-a0a0-bf0c05894180","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":174,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"bfa2f24d-b225-4b38-80d7-ed712050a6ae","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":174,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"e98b91dd-433b-4b48-a97a-560915c03c4b","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":174,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"fcea0550-a575-45d6-9768-ec999869379a","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":174,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"ab219b6f-192f-4c0e-be39-232bcfe18315","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":174,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"0cc0d533-6088-42cb-8a8c-ba0ff64de2f0","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":174,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"4e6b73f3-fa63-4370-9766-398f30109c1f","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":174,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"59f8147c-0959-4b10-a362-901a315cfaf4","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":174,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"a50cc323-5b7f-451a-9153-2899f6ee7903","block_type":"box","text":"against their taxes.","page_number":174,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"fcb59d2b-cac1-4a29-b373-2ef4c711775b","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":174,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"ca8d126f-098b-4ca6-b97e-4328f3b3b7d4","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":174,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"ea95c860-cae5-4099-87df-9218885798b0","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":174,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"ffc45b7e-a2fb-45b2-825e-7bf21c3bce15","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":174,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"0848b17e-7611-4438-88a9-d7a08cd4a9c9","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":174,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"dbb353b7-c47f-42df-a7ce-616761ba68c9","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":174,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"9444bb20-de00-44ef-b95d-60993cd903a8","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":174,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"daaff91b-d355-4be9-82c5-d2c6e9d0e1d9","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":174,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"5a3449f1-c642-4226-91b6-98f752181a6e","block_type":"box","text":"dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"6fe129ad-2b17-4e8a-8cbf-d1b2ec6d07a4","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":174,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"27e0b472-bbf3-4061-8ec2-8c5ad9222592","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":174,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"3502b0a9-cd29-4f37-b395-7ac03e95a2c1","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":174,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"d070f882-69db-4744-9e73-d37cbb3793c2","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":174,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"ff7fded5-13d9-4e2d-85fb-0e249a0d3fef","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":174,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"30983ddb-5fa8-478e-8def-f598fb5d5070","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":174,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"21231503-19d5-45a0-87c6-617838a75cb2","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":174,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"a1529e2e-e4e7-4099-a2f9-51d880dfff90","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":174,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"5b27532a-1d1e-48b2-951b-08e355092924","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":174,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"4c6a3293-9d53-4f25-8222-b50daf7e2f97","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":174,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"8df6c3be-2f7d-429a-a4c2-00502c3575cb","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":174,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"1c26e029-d0cd-4e4d-bdcd-cf2af63ca067","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":174,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"35dedd70-b82e-44e8-9e7b-44bf807b9b3c","block_type":"box","text":"taxable year.","page_number":174,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"bda97a80-fc01-440e-b2c7-ed6dd847a77e","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":174,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"b2ca5faf-155f-4d42-93f8-f70b30c77ad2","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":174,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"9bfda834-6d60-40eb-a69d-d4dedc2960b7","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":174,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"f7acaba2-26c4-45f6-b8f0-616715b7b9e7","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":174,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"e8d53c0e-2139-40cd-9c44-959ee6a2d933","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":174,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"b2b0da88-2102-4b8e-bff1-c1a9284edfb9","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":174,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"56f0cf21-a4d5-416c-aa1e-e53c1cea602b","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":174,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"4fb22856-b675-474e-9174-ae8af902e9b7","block_type":"box","text":"II-130","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9a3d4f46-317f-413d-98e2-ff622a60abab","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a03ba081-48c8-4594-802c-29e7f7c35e36","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":175,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"e345a2e5-77b4-4541-bd13-8b41959f64cb","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":175,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"6996182b-2704-441d-9197-0ec2ae783e86","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":175,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"4cda3019-96f4-442a-b954-9367daf460ab","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":175,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"61d45c26-581b-4268-960c-2dc5c29d9bfa","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":175,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"851a209f-39e3-4b62-8a92-ce247478262f","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":175,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"8e5853ab-e6d2-4000-a1c3-f2c1823ed5ad","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":175,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"4007dae7-db99-4f6d-884f-7a3238f812a3","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":175,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"459a57e8-74ce-405b-bd5f-653a10f6f7fb","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":175,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"bd314864-4d3d-43c7-8c65-9ffb1e90f2ca","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":175,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"d9fc60b4-ba9a-429f-9c93-8e190fa2cc92","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":175,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"aa51ebc7-e351-4769-b584-2675cbea5bc2","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":175,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"2c231255-cc97-46ae-ab0f-f1435e763c38","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":175,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"9c790b37-f712-430e-a610-81a517885cbd","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":175,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"ddc29685-7e84-4c91-935d-d4fc2296e1de","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":175,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"281c8a88-78bd-41ce-b3a1-8695f19137a5","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":175,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"3360d333-7095-4911-8cf0-d7f65dc75921","block_type":"box","text":"redemption of such shares.","page_number":175,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"a30ba220-3066-4a00-ad8a-520af5acdee9","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":175,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"28ab057e-610d-4c6d-90d7-06145160c971","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":175,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"92d5fc4d-4809-4676-951b-96a7ddd77b08","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":175,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"e1c45c02-ead0-4759-8b60-f67343c5261a","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":175,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"839fc18a-f253-4524-a079-2d0188a4858d","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":175,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"adcf7deb-9aa7-4f2e-8755-9570ac43baad","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":175,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"f56cd8a3-1190-44b9-b145-2b8778870285","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":175,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"13ff46b0-8b6f-45c1-a98f-25efdc89bfa5","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":175,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"1bf068ca-8167-4ae3-b158-bea70239bad9","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":175,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"39e04dc1-a547-497e-9fa2-75ff42b236e9","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":175,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"a5c6cd1d-c961-4178-a945-72b20deebb97","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":175,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"8d8a73df-3c0e-44ad-a1f9-047ed869f693","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":175,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"32dcc834-245c-4572-83b6-67763cbeb6e6","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":175,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"9d049725-588b-47a4-982a-772b586797eb","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":175,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"509c20dc-7d3c-4d83-ba4b-c49cf4e69636","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":175,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"df0352df-7d12-4687-a9cd-9301a935b054","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":175,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"3e0f0f1f-75e6-46ab-a588-dfd558127ca6","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":175,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"e8fb7677-8486-4ce1-97d7-8e5b16270d39","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":175,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"d7e64f6e-92a6-410a-9b2b-f5c9307ff026","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":175,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"e879716a-2395-4e88-b7c7-934737bf453b","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":175,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"caa81e95-0323-4956-ae4c-1ece76bd02a5","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":175,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"087cd84b-4633-4324-ae56-b6ee9ffee5f2","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":175,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"5b39d980-7b72-49c3-932c-41bf2d7acc8a","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":175,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"9d5e5f65-ad9c-4c9e-abeb-679fca48c7ef","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":175,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"2d5c71e8-2928-4869-b091-9048c1f830d3","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":175,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"b2f4bb1f-b157-4ec8-9beb-989e0c9ef413","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":175,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"39aa79e5-7852-4b58-95da-7c32196713bf","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":175,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"dd24ada1-ace4-4a83-99cb-d1be061c791b","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":175,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"3f56d112-30ac-46b6-843a-7ace8f248a1c","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":175,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"b10516f2-7335-4209-a001-89f393108341","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":175,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"cf960258-db2b-4f60-b7bf-5e09bba623c5","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":175,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"37c06be9-9c64-4938-998e-1bdd29f8969f","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":175,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"525e6f54-a2ce-4952-919a-59cac1f8e3df","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":175,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"68282502-8fba-48f3-b243-8842b24d483b","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":175,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"21981072-efdd-4a0b-8776-557846abe661","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":175,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"81b23512-7db1-41cb-860c-137e3c38518c","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":175,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"dc795927-dd33-4e1d-9e61-25f3809e0dae","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":175,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"1579de44-b67c-4a1f-8ba8-816714ac0c15","block_type":"box","text":"II-131","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"27c84e19-ab54-47ca-a836-b6f041212c99","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f788c19-081f-41b3-9955-a137f1c8851d","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":176,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"8458c598-38d9-4d5b-8c8b-39287b0f2c53","block_type":"box","text":"in subsequent taxable years.","page_number":176,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"c7285d8c-603f-4f60-b47d-9e704e8d09b0","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":176,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"a371a9a0-5a76-45bd-a86e-e95f9722bec3","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":176,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"88a66289-26db-4f3a-b560-0b2901abff76","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":176,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"7cb5dab6-29b6-47bf-b583-4b807c1c8661","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":176,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"11b38541-a82a-4f0f-a4e0-b696a16bb76e","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":176,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"5c69a0f9-ec21-4458-af1b-94e238991060","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":176,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"fe30101f-a874-4e66-a735-a648bec97944","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"ae225e44-418e-4c06-b1ce-155845d4524a","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":176,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"11fb6599-83f4-42ab-bfbc-58d3bac5b438","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":176,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"a5e5b071-79ec-40cf-b0d3-8f5789d17cba","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":176,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"aa8c8e1e-59e0-4530-8417-f236dc5e60f3","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":176,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"ff3e6b24-1522-47c6-ab3a-a55589ab57f4","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":176,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"82ffae7a-40fa-4159-b59d-8ee404ac5a79","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"b47619cb-be01-4623-bac7-2148e66f1b83","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":176,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"286d5387-13e3-4f35-a85f-7484160954c0","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":176,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"95b0d9cf-5bc3-4761-b80d-44c5080b8fb2","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":176,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"0c6b9479-16fa-44ac-b0e8-96abb68ebed2","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":176,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"e663dd45-39a8-4e0c-8ade-b93cef7c49a4","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":176,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"58d699bf-34b0-483f-9f05-1000bd6739c2","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":176,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"1135b5e8-3a37-48f3-9d8d-0def75c99042","block_type":"box","text":"dividends under these rules.","page_number":176,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"ea204aed-2d39-41df-88fe-ac0c39307338","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":176,"box":{"x":102,"y":392,"width":747,"height":12}},{"id":"68185d03-bc9c-4ee4-8b31-e17b18ee7a60","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":176,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"6c8a7fd4-637c-46b4-8d09-23efd749e3d2","block_type":"box","text":"the date of the distributions, to the extent the distributions are attributable to gains from sales or exchanges of U.S.","page_number":176,"box":{"x":68,"y":423,"width":829,"height":11}},{"id":"bb35bb8d-b580-4c79-9675-38ee58623f44","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":176,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"8e6994b1-bd80-4d87-8318-bc0ecef3ad5d","block_type":"box","text":"although exceptions may apply if any class of stock of such a corporation is regularly traded on an established","page_number":176,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"3c1d5fe4-500e-4174-a8d1-00ca4f3bd5ed","block_type":"box","text":"securities market and the Fund has held no more than 5% of such class of stock at all times during the five-year","page_number":176,"box":{"x":69,"y":468,"width":800,"height":11}},{"id":"8b0760aa-c379-4a61-a613-5bd8b0ee7362","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":176,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"0c73f7f6-3660-429f-89f9-06701688d62d","block_type":"box","text":"effectively connected to a trade or business within the United States, which is generally subject to tax at the","page_number":176,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"0209a83b-b3e0-4404-a156-90f3b68fe4f0","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":176,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"2b1f8c21-6edb-41e1-ace1-b350792af7e4","block_type":"box","text":"than 5% of any class of stock of the Fund at all times during the previous one-year period ending on the date of the","page_number":176,"box":{"x":68,"y":528,"width":820,"height":12}},{"id":"67ead3bb-7b54-48f2-b93f-3eb32d40b346","block_type":"box","text":"distributions. Such distributions will be subject to U.S. income and withholding tax and generally will require a foreign","page_number":176,"box":{"x":69,"y":543,"width":833,"height":12}},{"id":"c0f919b6-d429-4222-8852-fd401a1bf7e8","block_type":"box","text":"shareholder to file a U.S. federal income tax return. If the foreign shareholder held no more than 5% of any class of","page_number":176,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"950284bc-72fb-41d3-97e9-43693a0f7f7f","block_type":"box","text":"stock of the Fund at all times during the previous one-year period ending on the date of the distributions, the","page_number":176,"box":{"x":69,"y":574,"width":774,"height":11}},{"id":"cd03d011-6d9d-4470-8f43-a10a39adcd52","block_type":"box","text":"distributions will be taxable as ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition,","page_number":176,"box":{"x":69,"y":589,"width":839,"height":11}},{"id":"16022139-03d5-4069-9781-65743298adef","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":176,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"92f75d8d-f3d5-4413-ae55-79f7417617d6","block_type":"box","text":"income and withholding tax and generally will require the foreign shareholder to file a U.S. federal income tax return,","page_number":176,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"9fc3ca14-3377-4651-8b23-3455a86c329b","block_type":"box","text":"although exceptions may apply if more than 50% of the value of the Fund’s shares are held by U.S. shareholders or","page_number":176,"box":{"x":69,"y":634,"width":823,"height":12}},{"id":"53217156-0a99-4e83-8dd1-aa717935fd86","block_type":"box","text":"the foreign shareholder selling or redeeming the shares has held no more than 5% of any class of stock of the Fund","page_number":176,"box":{"x":68,"y":649,"width":827,"height":12}},{"id":"431f0349-80fb-44b0-a5a7-085ce252c0d5","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":176,"box":{"x":69,"y":664,"width":596,"height":12}},{"id":"6407a6bf-7339-4dd0-a002-f75490621da9","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions and other","page_number":176,"box":{"x":102,"y":687,"width":802,"height":11}},{"id":"9c94524e-e670-4090-a29e-5cb39921566c","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":176,"box":{"x":69,"y":702,"width":827,"height":12}},{"id":"6df5fac3-5fd1-4af4-8b49-98ed6d72c02d","block_type":"box","text":"corporations”, although exceptions may apply if any class of stock of such a corporation is regularly traded on an","page_number":176,"box":{"x":69,"y":717,"width":804,"height":12}},{"id":"383d8032-c90a-45da-9f94-49f39cd9e848","block_type":"box","text":"established securities market and the Fund has held no more than 5% of such class of stock at all times during the","page_number":176,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"0fa709fc-8bae-42d3-873a-b78aee345a18","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":176,"box":{"x":68,"y":748,"width":801,"height":11}},{"id":"4482704a-28cc-4ad2-8a94-146e3845fae8","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":176,"box":{"x":69,"y":763,"width":803,"height":11}},{"id":"86d8c69d-71ae-49b1-b90c-766661597952","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":176,"box":{"x":69,"y":778,"width":785,"height":11}},{"id":"69b077f4-28f7-4100-90c0-69c1f42373c5","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":176,"box":{"x":69,"y":793,"width":676,"height":11}},{"id":"b664d0db-af48-45cb-877e-e0fc637a5aba","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":176,"box":{"x":101,"y":816,"width":798,"height":11}},{"id":"ba0d65b9-01bc-498c-a027-8a6d671be8ea","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":176,"box":{"x":69,"y":831,"width":651,"height":11}},{"id":"7fd8dfdc-42a6-4a4e-b88d-a481765df13c","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":176,"box":{"x":102,"y":853,"width":731,"height":12}},{"id":"8ffc0df5-f720-4ffd-9e2b-91b2624eeac0","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":176,"box":{"x":69,"y":869,"width":570,"height":11}},{"id":"8dc490cd-35c6-4eaf-8a86-b068de7b8e7f","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":176,"box":{"x":102,"y":891,"width":763,"height":12}},{"id":"1ebb0d6b-7222-41b1-a16f-3b415edf6e77","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":176,"box":{"x":70,"y":906,"width":820,"height":12}},{"id":"370e7eaa-29f6-4cd9-8943-5e9f47052b47","block_type":"box","text":"II-132","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5cc76f28-7559-4076-b3f1-8bc23b65601c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"81e6d13f-6d5e-417c-ac6a-dd0fd1a85e79","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":177,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"917c30aa-b367-4e65-af76-8dbaf41ece2f","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":177,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"0cf3d63a-2a62-4180-854d-c58d6323fbd9","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":177,"box":{"x":69,"y":75,"width":791,"height":11}},{"id":"6189fa49-e37e-4641-aa03-a474f1dcd3c8","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":177,"box":{"x":68,"y":90,"width":791,"height":11}},{"id":"e23842ae-fcd0-4463-b0ca-8e890cf7b0f9","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":177,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"e6e9b703-f914-498d-8713-112bb79f5c8a","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":177,"box":{"x":70,"y":120,"width":739,"height":12}},{"id":"78509520-35fe-4be7-90a4-30661710616c","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":177,"box":{"x":102,"y":143,"width":786,"height":11}},{"id":"8048d284-040a-475a-8329-ed18d7f487f7","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":177,"box":{"x":70,"y":158,"width":820,"height":11}},{"id":"1108b54c-c599-4ce6-b3d2-beb0d006f586","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":177,"box":{"x":69,"y":173,"width":837,"height":11}},{"id":"4ec777b9-7139-44b6-9a12-38939a9fb715","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":177,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"88796d1c-2952-47b8-9658-ecb656130ef8","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":177,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"c6887fa9-396c-4768-abd1-8b58666d81a7","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":177,"box":{"x":69,"y":219,"width":826,"height":11}},{"id":"9323b2e6-3d93-411f-844f-56cf3dadc3db","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":177,"box":{"x":69,"y":234,"width":802,"height":11}},{"id":"093ada33-7c43-4a1a-914d-6b5b27142694","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":177,"box":{"x":69,"y":249,"width":364,"height":11}},{"id":"e8c0e527-71e1-41fd-8f8b-835d61b58030","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":177,"box":{"x":102,"y":271,"width":774,"height":12}},{"id":"45d575ed-b5a3-4b09-be97-f2f403a2cd4e","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":177,"box":{"x":68,"y":286,"width":787,"height":12}},{"id":"0236df34-ef61-4d80-9fc8-9e9dec613763","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":177,"box":{"x":68,"y":301,"width":835,"height":12}},{"id":"956ee114-cb7a-40ad-b58e-a5684497ab64","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":177,"box":{"x":68,"y":317,"width":809,"height":11}},{"id":"1b9fcbf1-3ae0-47f7-8785-f51351209ee1","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":177,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"1281d017-eee9-4965-8f81-67e0db8b0fa5","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":177,"box":{"x":69,"y":347,"width":783,"height":11}},{"id":"5a086d83-cb37-46ea-8ab8-c6bcea7b4774","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":177,"box":{"x":69,"y":362,"width":710,"height":11}},{"id":"f68a7a04-a061-40ec-b58d-f5335747aaee","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":177,"box":{"x":102,"y":385,"width":758,"height":11}},{"id":"216265d5-1274-4a13-88a2-fdf4488634f5","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":177,"box":{"x":69,"y":400,"width":782,"height":11}},{"id":"c2e9e585-f281-4b22-99b1-8c7efcec6c2d","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":177,"box":{"x":70,"y":415,"width":783,"height":11}},{"id":"5af673e4-a8d9-4c40-b206-e73b6a58c34f","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":177,"box":{"x":69,"y":430,"width":797,"height":11}},{"id":"a7a7a1df-0fbc-4e98-af4e-a28aab9ffea3","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":177,"box":{"x":70,"y":445,"width":822,"height":12}},{"id":"6c969f6a-1aed-4aee-b9e2-f1d2971efbb8","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":177,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"101ed4e1-d8e4-4dbf-b6f0-823018efb51d","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":177,"box":{"x":70,"y":475,"width":826,"height":12}},{"id":"e9862bed-f47f-40bc-8083-a1eb15efaca4","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":177,"box":{"x":69,"y":491,"width":808,"height":11}},{"id":"ebcfad02-6ee2-4920-aacc-f7363e0ca3e5","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":177,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"b91ba4be-eda7-4d0a-b754-3872051e4f2d","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":177,"box":{"x":70,"y":521,"width":770,"height":11}},{"id":"22733378-5df8-40dd-97d9-3d6705cd06e0","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":177,"box":{"x":70,"y":536,"width":816,"height":11}},{"id":"fac19bdc-6ad6-48b2-9fad-384be6a9fd38","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":177,"box":{"x":70,"y":551,"width":796,"height":11}},{"id":"52f130c3-72d6-4f90-9e82-270bd91b6105","block_type":"box","text":"investment oppor tunities.","page_number":177,"box":{"x":70,"y":566,"width":180,"height":11}},{"id":"a8d77977-4217-453f-9da8-3b928c9a405d","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":177,"box":{"x":102,"y":589,"width":801,"height":11}},{"id":"71dd0506-ff80-4fe5-a041-7760e0655a2a","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":177,"box":{"x":70,"y":604,"width":839,"height":11}},{"id":"8a65b34c-a4e0-4fea-b1e0-86ea26342396","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":177,"box":{"x":69,"y":619,"width":840,"height":11}},{"id":"c16a192c-8cb6-4810-96cb-20e079da74cf","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":177,"box":{"x":68,"y":634,"width":837,"height":12}},{"id":"913878e5-83c7-4155-8cd4-cbc7ed71036a","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":177,"box":{"x":70,"y":649,"width":774,"height":11}},{"id":"f29fc72e-2b27-45e1-9ce5-12009a053055","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":177,"box":{"x":69,"y":664,"width":820,"height":12}},{"id":"1cd5f80f-a6cf-44d1-ab64-5530a5d9a091","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":177,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"8bae1ea5-bd6e-47bd-bec7-1302ca172269","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":177,"box":{"x":69,"y":695,"width":755,"height":11}},{"id":"30d05636-c5b2-4813-9afc-cda9b790430f","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":177,"box":{"x":69,"y":710,"width":811,"height":11}},{"id":"a4d58e0c-d648-4e3d-a987-e32b7343a6c8","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":177,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"6d5e28bc-f6cd-4dc7-be14-3c707c89b93d","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":177,"box":{"x":68,"y":740,"width":812,"height":11}},{"id":"b78c2f0f-22b7-460b-9027-da927f59e405","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":177,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"5491e32e-d18a-4276-8dfe-4075f7cf993c","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":177,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"6a4df3c2-99de-4bf4-83f0-238d122342c7","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":177,"box":{"x":70,"y":785,"width":829,"height":12}},{"id":"016c1cf0-9612-46f9-b7da-efe20af62875","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":177,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"7988eb8f-f069-4050-ac96-5f2d9723d780","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":177,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"816e3d5d-02b9-41ce-ac41-340d017ccb32","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":177,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"e52e48cc-c1c0-49b4-969d-8ab7053ba90e","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":177,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"62f46bf6-9b05-47f2-a7dd-3b15027a698a","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":177,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"ee8c8a82-ebcb-43e5-aca2-fe847eedf185","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":177,"box":{"x":70,"y":876,"width":814,"height":11}},{"id":"f153f497-dc45-412a-b7e8-8b2f5110ee4d","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":177,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"06f4768c-fbf2-4993-8474-5a08c76ba7bf","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":177,"box":{"x":68,"y":906,"width":527,"height":12}},{"id":"81c0ad1c-d726-4d9b-af73-d81ef3d2a778","block_type":"box","text":"II-133","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"62b21359-1722-4326-8c6d-95c928a0f7d6","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01f25239-1f0b-48c5-ae85-a95e8e6d5729","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":178,"box":{"x":102,"y":45,"width":768,"height":11}},{"id":"5ca37c8b-941c-42db-b15b-d346cf8a66c8","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":178,"box":{"x":69,"y":60,"width":780,"height":11}},{"id":"9692cd18-a255-4bfc-b306-1fdff0aaa947","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":178,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"27174fb7-5801-4142-bc3d-dd3c5c37c669","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":178,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"08d885b9-0cb0-4dc0-a718-30bb51bfb8e5","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":178,"box":{"x":69,"y":105,"width":831,"height":11}},{"id":"79a8a616-a54b-49fe-b02f-31fbbd24c63d","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":178,"box":{"x":69,"y":120,"width":776,"height":11}},{"id":"dd3efa99-325e-4b34-9dcf-120e525aa9d5","block_type":"box","text":"positions in its por tfolio (","page_number":178,"box":{"x":70,"y":135,"width":177,"height":11}},{"id":"7bdacec3-9c96-44c4-a845-182d275aed13","block_type":"box","text":"i.e.","page_number":178,"box":{"x":249,"y":136,"width":20,"height":8}},{"id":"41561b98-fb9b-4a8b-b1e8-d10e9d2c6d86","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":178,"box":{"x":272,"y":135,"width":636,"height":12}},{"id":"535d0621-484f-475c-8171-fd297eec0bac","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":178,"box":{"x":69,"y":150,"width":795,"height":12}},{"id":"f5913eee-dac3-4e98-9311-26b49e4c0828","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":178,"box":{"x":70,"y":166,"width":830,"height":11}},{"id":"f0be3d77-592c-4819-b0f6-ad7a25bbbc6e","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":178,"box":{"x":69,"y":181,"width":804,"height":11}},{"id":"0cae0f51-4d32-4cee-9ddb-e3b58a2d587b","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":178,"box":{"x":69,"y":196,"width":415,"height":11}},{"id":"61845ebf-c8f8-4896-8089-8a32ebaa4d81","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":178,"box":{"x":102,"y":218,"width":781,"height":12}},{"id":"89688076-e3a3-47b7-9c8c-1c8c5f0bf553","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":178,"box":{"x":69,"y":234,"width":835,"height":11}},{"id":"29cf7358-2ebb-48ff-a347-5dfd2bb43d76","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":178,"box":{"x":70,"y":249,"width":811,"height":11}},{"id":"d3f2f0b5-033a-4043-a577-53331a4452ff","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":178,"box":{"x":69,"y":264,"width":818,"height":11}},{"id":"a993e565-5257-4b9c-863f-6c056951dbda","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":178,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"752e8ec5-0851-44d1-9ff1-8137157aca00","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":178,"box":{"x":69,"y":294,"width":834,"height":11}},{"id":"e5543644-1347-400e-ab85-f547b4cd82fb","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":178,"box":{"x":69,"y":309,"width":833,"height":11}},{"id":"93feae82-44fc-4a77-a4a5-1f6dbc9107d2","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":178,"box":{"x":69,"y":324,"width":805,"height":12}},{"id":"be8bec47-3248-4d06-af08-ca0a7aefe8c6","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":178,"box":{"x":69,"y":339,"width":805,"height":12}},{"id":"975b3994-21d3-408f-ad38-a86c1dc65db2","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":178,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"fc237fa5-2dbf-46c2-8ee0-0b5b0b7fbbd5","block_type":"box","text":"capital asset.","page_number":178,"box":{"x":69,"y":370,"width":95,"height":11}},{"id":"1f7f0940-a472-4101-a8e7-2c1d7be529eb","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":178,"box":{"x":102,"y":392,"width":787,"height":12}},{"id":"a0cdf9f3-a812-4512-966e-ffd0c987aedc","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":178,"box":{"x":70,"y":407,"width":836,"height":12}},{"id":"32eb1fc6-2a54-4175-a5e8-ca2a065e0672","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":178,"box":{"x":69,"y":423,"width":812,"height":11}},{"id":"26f4af62-d2dd-4953-9633-c8c31be7366f","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":178,"box":{"x":69,"y":438,"width":805,"height":11}},{"id":"69fe04f4-b8cb-4aa6-862b-9a6de113e59f","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":178,"box":{"x":68,"y":453,"width":829,"height":11}},{"id":"ac43cb30-7c07-4f4a-89d8-b417285637cd","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":178,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"ef1a638a-2feb-4d39-80f3-2960409348d3","block_type":"box","text":"Fund were to invest otherwise.","page_number":178,"box":{"x":70,"y":483,"width":216,"height":9}},{"id":"f2e4fa9e-d458-44d0-a3eb-98cdd5b523db","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":178,"box":{"x":101,"y":506,"width":721,"height":11}},{"id":"ca1ad61d-4fe7-4301-9e56-bbc54d38ee7e","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":178,"box":{"x":70,"y":521,"width":787,"height":11}},{"id":"4f8480a3-1887-490a-9469-1deb5759e1d4","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":178,"box":{"x":70,"y":536,"width":831,"height":11}},{"id":"7b3a20a7-6c2b-4fef-9db8-7d0273409e3d","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":178,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"f6f161bb-742d-48ea-b923-75869b42ff93","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":178,"box":{"x":69,"y":566,"width":825,"height":11}},{"id":"26d132a6-71f6-48a7-b66a-1b74b1670228","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":178,"box":{"x":68,"y":581,"width":838,"height":12}},{"id":"9cf3e36b-2bae-4f3c-ba2f-8930dbbabb91","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":178,"box":{"x":68,"y":596,"width":830,"height":12}},{"id":"5b41bacc-e183-4cd7-9faa-2a8cd52d080a","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":178,"box":{"x":69,"y":612,"width":515,"height":11}},{"id":"e7aca4b4-796e-4da1-b586-97d46d1879b8","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":178,"box":{"x":102,"y":634,"width":798,"height":12}},{"id":"66a70e69-8e78-4a7f-a7fb-da2905144594","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":178,"box":{"x":68,"y":649,"width":835,"height":12}},{"id":"07d012b9-7f6d-43f5-86bc-2769e19b4ea3","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":178,"box":{"x":70,"y":664,"width":827,"height":12}},{"id":"73a647f1-3405-4a23-ac71-ae968aeea106","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":178,"box":{"x":68,"y":680,"width":830,"height":11}},{"id":"a8d56a11-6cc1-49cc-a2eb-913af7da28a4","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":178,"box":{"x":69,"y":695,"width":802,"height":11}},{"id":"a9b1398a-4b80-417b-b803-fbd44fab98cd","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":178,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"4957b8b4-0a8c-4f31-8e6c-90015960ed26","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":178,"box":{"x":70,"y":725,"width":797,"height":11}},{"id":"2c2bfccb-5cd1-4d37-9042-67fe4b1d7e96","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":178,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"f01ff255-a0c8-42be-a35b-c3b33eab83c4","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":178,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"0e22cf10-e559-4a0f-be89-5807fe8a2f57","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":178,"box":{"x":68,"y":770,"width":797,"height":11}},{"id":"d95f3d44-3836-44d9-a711-95ccc5575ee5","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":178,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"8b05d8ef-04ad-465f-8975-7ed7ce6a816d","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":178,"box":{"x":68,"y":801,"width":804,"height":11}},{"id":"07295717-d14e-4f7c-8a22-868f627d6256","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":178,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"d737d2d2-66f2-4611-973f-75f9fb80da4d","block_type":"box","text":"PFICs.","page_number":178,"box":{"x":69,"y":831,"width":42,"height":9}},{"id":"7481f7d6-4c5e-480f-be38-ba5d12df94e3","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":178,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"35c4cd8e-9aa4-4ce5-aee9-32070bd57dfd","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":178,"box":{"x":69,"y":869,"width":816,"height":11}},{"id":"e32b1ae8-7373-4f6f-b550-d33d1c310600","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":178,"box":{"x":69,"y":884,"width":816,"height":11}},{"id":"a200e30a-398b-4328-97ea-75332fc3896e","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":178,"box":{"x":68,"y":899,"width":840,"height":11}},{"id":"6fe6d956-be4a-48fc-84be-d8db403dcded","block_type":"box","text":"II-134","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"316bea39-8fd0-40d1-8d48-c6a7ec376ff8","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f04670b0-b9a7-4ae6-b211-2bc4e69b714d","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":179,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"e0986337-6dc7-416c-9ed2-091ff9771181","block_type":"box","text":"difficult or impossible to obtain.","page_number":179,"box":{"x":69,"y":60,"width":225,"height":11}},{"id":"c2219ff1-b3c0-4bea-b44f-ac15b8515e50","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":179,"box":{"x":102,"y":82,"width":796,"height":12}},{"id":"d487274a-05df-4773-a8bf-a28d8ad9de30","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":179,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"d68a0bfb-e942-4926-84e0-105cceddd61b","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":179,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"20fc93c5-8b95-4a3a-9749-06eb9a4dd1b0","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":179,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"bba7c4a1-53a2-4ee8-959e-dbd04f3b6bca","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":179,"box":{"x":68,"y":143,"width":824,"height":11}},{"id":"fb9b4037-e94a-4a57-91fb-816368eeb3bc","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":179,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"5c2b2539-4e25-473c-9235-d664a3337d5d","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":179,"box":{"x":69,"y":173,"width":511,"height":11}},{"id":"856ad332-b189-443f-944a-f30b3bf187f5","block_type":"box","text":"Municipal Funds","page_number":179,"box":{"x":102,"y":196,"width":115,"height":11}},{"id":"b5a16e50-16ea-4235-9b3d-e73a0a389100","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":179,"box":{"x":102,"y":218,"width":798,"height":12}},{"id":"2cb4691d-dfa3-4b84-b2dc-e943f33ff765","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":179,"box":{"x":69,"y":234,"width":815,"height":11}},{"id":"2341ccb8-f607-46e3-8d5b-b98421d8c8f2","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":179,"box":{"x":70,"y":249,"width":803,"height":11}},{"id":"d0ebfc67-198d-4fef-9900-b134ab3fcc4e","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":179,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"603b07ae-43ee-481e-99f5-4a2adf2fc5eb","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":179,"box":{"x":69,"y":279,"width":752,"height":11}},{"id":"fd7bbe24-f722-475b-817c-5b777072a6fd","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":179,"box":{"x":70,"y":294,"width":817,"height":11}},{"id":"033ba9e6-ce63-4628-9abb-8a4d86df9582","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":179,"box":{"x":70,"y":309,"width":780,"height":11}},{"id":"05e5486d-efa6-45ea-808a-9d45c0b16cb4","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":179,"box":{"x":70,"y":324,"width":815,"height":12}},{"id":"d069e804-358d-42f9-ac61-d574e07a2646","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":179,"box":{"x":69,"y":340,"width":839,"height":11}},{"id":"bd12bb1a-15c4-4b10-ab7f-dd05e51db42c","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":179,"box":{"x":70,"y":355,"width":835,"height":11}},{"id":"d013ac5e-c693-4299-bf09-1c73cc891b37","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":179,"box":{"x":68,"y":370,"width":730,"height":11}},{"id":"ec2d367c-6f93-4a50-8394-78298bb21abb","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":179,"box":{"x":102,"y":392,"width":763,"height":12}},{"id":"d78c21e9-9191-4ef3-ae64-1ed1425aaaf0","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":179,"box":{"x":70,"y":407,"width":809,"height":12}},{"id":"504615e6-b834-4ae2-b375-719fdfbc87ba","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":179,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"48a9409a-d99a-4258-af0d-7ecf507bbb47","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":179,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"d20a4d9d-fcf7-4dc7-a02b-70db85364486","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":179,"box":{"x":68,"y":453,"width":800,"height":11}},{"id":"62598e29-660d-47e7-acf1-30287e3f4a98","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":179,"box":{"x":69,"y":468,"width":810,"height":11}},{"id":"e1fb5623-1667-4ef9-bf0c-7d573eb3c32c","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":179,"box":{"x":70,"y":483,"width":836,"height":11}},{"id":"bf752a26-ab10-49ed-8b99-a2d90828a60d","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":179,"box":{"x":69,"y":498,"width":835,"height":11}},{"id":"2d0a4f94-1483-46d3-ae1b-f01cb54b369b","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":179,"box":{"x":69,"y":513,"width":217,"height":11}},{"id":"70885b86-49e8-4bfe-8737-eca05c9029f2","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":179,"box":{"x":102,"y":536,"width":788,"height":11}},{"id":"dff09aef-fbb7-4ac2-9a8a-411e706c642b","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":179,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"1ca05176-2939-4d17-bca9-369becf884f7","block_type":"box","text":"constitute exempt-interest dividends.","page_number":179,"box":{"x":69,"y":566,"width":261,"height":11}},{"id":"4ee00044-96e8-43b4-91f7-7a46478bad7f","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":179,"box":{"x":102,"y":589,"width":765,"height":11}},{"id":"ecd9516e-8549-47fa-b096-66fe27cadd07","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":179,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"2f86893e-1015-4d30-a655-83f84a91a78b","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":179,"box":{"x":68,"y":619,"width":813,"height":11}},{"id":"1767ebdb-7af0-44c5-b32e-ae0b26880106","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":179,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"ae1fcb19-e6a9-4e2b-9c7b-58e03ad82468","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":179,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"417b24dc-f139-43f0-b4c5-01fa7c4f1852","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":179,"box":{"x":69,"y":665,"width":388,"height":11}},{"id":"96d19168-3a12-4e50-b8d6-ecb1626fde9a","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":179,"box":{"x":101,"y":687,"width":787,"height":11}},{"id":"d13066a2-9b3a-4812-884d-231e927e4a03","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":179,"box":{"x":69,"y":702,"width":817,"height":12}},{"id":"40349e34-0dc9-42aa-8b45-da96e2b1652b","block_type":"box","text":"income dividends received by shareholders.","page_number":179,"box":{"x":70,"y":718,"width":309,"height":11}},{"id":"e136c96f-3b7f-4bf3-ab8f-e514f365d477","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":179,"box":{"x":101,"y":740,"width":766,"height":11}},{"id":"104f4c29-b261-4fe4-a2d3-de4085682f32","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":179,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"bba90486-09db-45f2-bac9-8a697c6cc206","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":179,"box":{"x":70,"y":771,"width":815,"height":11}},{"id":"cd49f54a-76d9-4818-96e3-1afef1d725b2","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":179,"box":{"x":70,"y":785,"width":815,"height":12}},{"id":"f6337b74-5035-406e-8171-cccf32f1569a","block_type":"box","text":"the accrued market discount.","page_number":179,"box":{"x":68,"y":801,"width":208,"height":9}},{"id":"4dcddff6-0c6a-4c89-9496-e03138d4ea8d","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":179,"box":{"x":101,"y":823,"width":801,"height":11}},{"id":"459a088e-6cd2-4249-8fdc-73728fd39c90","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":179,"box":{"x":68,"y":838,"width":818,"height":12}},{"id":"f33113ab-50aa-40da-b6d2-40fb5a6d273f","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":179,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"9e947f41-24d9-4833-a4d8-dc617985cffa","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":179,"box":{"x":69,"y":869,"width":351,"height":11}},{"id":"a4ada069-1eb3-4501-9288-ff35e8ac0dc9","block_type":"box","text":"e.g.","page_number":179,"box":{"x":422,"y":870,"width":24,"height":10}},{"id":"c9cf1403-64e0-449d-9b42-e6a8b07b5f07","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":179,"box":{"x":449,"y":869,"width":441,"height":11}},{"id":"e0de00d8-ff42-4cd0-a760-fb892824af2f","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":179,"box":{"x":70,"y":884,"width":827,"height":11}},{"id":"4d465931-6af8-457a-bd5e-7116d105aa3e","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":179,"box":{"x":69,"y":899,"width":786,"height":11}},{"id":"41d79055-7425-4a8a-bb1f-a681d804afa2","block_type":"box","text":"II-135","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"533efe56-ce5c-44c0-96f3-5343a0ae4a8d","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4679786d-33a7-4283-81be-a1d020f960ca","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":180,"box":{"x":70,"y":45,"width":782,"height":11}},{"id":"93d70c57-3510-48ac-87ee-8e2080650a9d","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":180,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"174bdc29-9f80-41aa-8bd0-18aaee7461c8","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":180,"box":{"x":102,"y":82,"width":802,"height":12}},{"id":"91ba5a12-a858-462f-88fb-ef6cc3e8088b","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":180,"box":{"x":68,"y":98,"width":812,"height":11}},{"id":"e33f208e-8218-48d3-a5e3-37051e55b084","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":180,"box":{"x":69,"y":113,"width":794,"height":11}},{"id":"4df84704-675c-4e58-afbe-63054cb8d110","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":180,"box":{"x":70,"y":128,"width":776,"height":11}},{"id":"e131342a-0e91-42df-b20b-9b4ef6bf40a3","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":180,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"df56aecc-4722-4746-9432-df2965c062af","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":180,"box":{"x":69,"y":158,"width":436,"height":11}},{"id":"080be719-eff9-4fda-95ed-58247bc1731c","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":180,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"c20b582e-0366-499f-ad59-67b867581e8b","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":180,"box":{"x":69,"y":196,"width":828,"height":11}},{"id":"33ade767-8bd2-4e7f-946d-21c6ee555aa8","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":180,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"3f9df981-8493-4d91-9618-c6e8545fb071","block_type":"box","text":"within each applicable state.","page_number":180,"box":{"x":68,"y":226,"width":203,"height":11}},{"id":"231f1706-6cce-4e6e-a581-08a189ff5ecb","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":180,"box":{"x":102,"y":249,"width":774,"height":11}},{"id":"cf5dc81e-a9f8-4530-b582-0e0b7caeabbd","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":180,"box":{"x":68,"y":264,"width":837,"height":11}},{"id":"55906636-c504-4c31-8b6d-4109977ffe4f","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":180,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"7d329358-e14a-489d-b116-a42052b65040","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":180,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"4b2bb64b-6b1c-41a3-9357-b7ead0b0397f","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":180,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"6881a94f-51aa-4722-9680-60b51e0dd957","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":180,"box":{"x":70,"y":324,"width":783,"height":11}},{"id":"325f7bdf-fb37-4262-a13c-a50dbe7f2e94","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":180,"box":{"x":68,"y":339,"width":822,"height":12}},{"id":"a1f727ac-0501-4baa-87f5-07d87cdc6fb7","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":180,"box":{"x":68,"y":355,"width":710,"height":11}},{"id":"e3227357-9389-4e6d-9171-f4e994964577","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":180,"box":{"x":102,"y":377,"width":796,"height":12}},{"id":"5c3f5e3d-7c78-4d3d-8f88-a0312aad1219","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":180,"box":{"x":68,"y":392,"width":828,"height":12}},{"id":"fb916bd0-5c74-4cb5-91c0-0229dedc8d70","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":180,"box":{"x":68,"y":408,"width":841,"height":11}},{"id":"31484be4-8c96-4543-8363-25529de6ccc3","block_type":"box","text":"exempt from state income tax.","page_number":180,"box":{"x":69,"y":423,"width":216,"height":11}},{"id":"bc3cab76-7eff-4084-ad7d-43701d8444d3","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":180,"box":{"x":102,"y":445,"width":771,"height":12}},{"id":"66870bcd-76fe-4d0e-a903-e15c355ea159","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":180,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"86c3a254-e2a8-47db-802d-08ac5721f4e2","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":180,"box":{"x":68,"y":475,"width":309,"height":9}},{"id":"edf57d35-aa58-4069-bd2c-e824ecae346a","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":180,"box":{"x":101,"y":498,"width":749,"height":11}},{"id":"ea233071-af40-4ad0-bf33-91cbc086f6ef","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":180,"box":{"x":69,"y":513,"width":803,"height":12}},{"id":"6c3f1814-c6b1-482b-90bc-7d47d8a49aa1","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":180,"box":{"x":69,"y":528,"width":801,"height":12}},{"id":"94764271-6727-426c-a8c5-89cbc7503d34","block_type":"box","text":"decisions may have a retroactive effect.","page_number":180,"box":{"x":69,"y":543,"width":283,"height":12}},{"id":"f3310cff-d639-49c0-8dee-391782f89b34","block_type":"box","text":"PERFORMANCE DATA","page_number":180,"box":{"x":403,"y":573,"width":173,"height":10}},{"id":"25d53fcc-316b-4d9a-87b8-2b1d5cf19207","block_type":"box","text":"From time to time a Fund may include its average annual total return and other total return data, and, if","page_number":180,"box":{"x":102,"y":596,"width":738,"height":11}},{"id":"1c6741c7-6b75-4f23-b5af-71846c9aaf5d","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":180,"box":{"x":69,"y":611,"width":779,"height":11}},{"id":"2e0d2bc1-1848-4635-9a3c-14ae12042230","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":180,"box":{"x":69,"y":626,"width":833,"height":11}},{"id":"515de594-a0d8-497c-8062-c84e2dfebc2a","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":180,"box":{"x":70,"y":641,"width":792,"height":11}},{"id":"f4102f97-dd00-4766-97ed-b1af45252836","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":180,"box":{"x":69,"y":656,"width":473,"height":11}},{"id":"74984232-c3b2-4394-b260-fa90e786c81f","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":180,"box":{"x":102,"y":679,"width":761,"height":11}},{"id":"27c49187-ac57-4b15-a57b-b993127ee453","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":180,"box":{"x":69,"y":694,"width":836,"height":11}},{"id":"2aa3eaab-9dce-4709-b043-273b1b100a51","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":180,"box":{"x":68,"y":709,"width":798,"height":11}},{"id":"fccf57ea-adc2-4b01-a9f5-85a792fc5aa4","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":180,"box":{"x":69,"y":724,"width":765,"height":12}},{"id":"ae91e93e-fda3-4d33-9601-e080512652a3","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":180,"box":{"x":69,"y":740,"width":808,"height":11}},{"id":"976ff838-6ece-4da7-96c7-e53c2157b14f","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":180,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"2652753d-18ce-400c-858d-b8271243034e","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":180,"box":{"x":69,"y":770,"width":839,"height":11}},{"id":"edf49161-0734-4e5c-a8d8-509d30fb6efe","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":180,"box":{"x":69,"y":785,"width":546,"height":11}},{"id":"d5dfbd8a-3c01-4dac-be32-9339e7f94111","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":180,"box":{"x":102,"y":807,"width":781,"height":12}},{"id":"3a039fe1-39cf-47b4-a7aa-29e010503581","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":180,"box":{"x":68,"y":823,"width":819,"height":11}},{"id":"5b2721c6-99ab-4b07-910b-79e39271e01d","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":180,"box":{"x":68,"y":838,"width":810,"height":11}},{"id":"2991485a-8cae-42a4-8b0c-8b6b9dba6973","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":180,"box":{"x":70,"y":853,"width":823,"height":11}},{"id":"d0610947-4e5a-43d9-b067-ca12095cee1b","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":180,"box":{"x":69,"y":868,"width":780,"height":11}},{"id":"b2d292f8-69be-4cf4-a73c-4a364e0454f3","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":180,"box":{"x":70,"y":883,"width":825,"height":11}},{"id":"27ffc4cd-20cf-4e6f-8a37-4e908ebedcf2","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":180,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"df2d5906-78fa-482f-bef5-81780318fc23","block_type":"box","text":"II-136","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e60b4d44-3fd7-4510-9b12-839038327bec","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1290aacd-af4f-437b-853f-ffe4bc6cdfa2","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":181,"box":{"x":69,"y":45,"width":820,"height":11}},{"id":"48dbde8d-cc90-4a05-aeef-7b4ff1931a04","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":181,"box":{"x":70,"y":60,"width":833,"height":11}},{"id":"b483f36e-8383-42ab-843b-a8adedeccb68","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":181,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"4fb03882-c427-4333-a60d-3f583b73781f","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":181,"box":{"x":68,"y":90,"width":824,"height":11}},{"id":"fe7a64e1-c2a2-4136-9c04-973ed4cb63b2","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":181,"box":{"x":69,"y":105,"width":837,"height":11}},{"id":"6c4b800d-03fc-4713-b4a4-5fc936bd1950","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":181,"box":{"x":69,"y":120,"width":814,"height":12}},{"id":"9aec542c-bf3e-4764-a6d3-d63b768ad061","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":181,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"0a45e505-1dce-4011-99ff-d677d4681917","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":181,"box":{"x":69,"y":150,"width":774,"height":11}},{"id":"11c7f2a9-4b79-48f1-9d5c-9e5e6a015b1c","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":181,"box":{"x":102,"y":173,"width":752,"height":11}},{"id":"78eee3bf-ea2a-46a9-bbf1-d1b8109dc475","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":181,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"ec4b7c20-22f4-4e2a-85eb-135e9595f7e1","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":181,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"e621542c-67c2-4f67-a348-43c81804a8a6","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":181,"box":{"x":69,"y":218,"width":756,"height":12}},{"id":"d565f595-61a1-4fff-b349-dc81e4a1ad72","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":181,"box":{"x":69,"y":234,"width":772,"height":11}},{"id":"b0236c28-4f62-493a-9fda-ff98a28d8a1e","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":181,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"c54ad95d-4e67-44bf-9097-299a4dc7dbe8","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":181,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"b52956d2-1ef5-484d-beed-7409dd0a12ac","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":181,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"95b46214-bf32-4c24-9ff7-e7769b2db7ee","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":181,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"8fe57b2b-f338-4557-a92a-2b01d04cd9fa","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":181,"box":{"x":69,"y":309,"width":768,"height":11}},{"id":"d345e3d8-130a-4bff-971b-8fa5c2c70326","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":181,"box":{"x":69,"y":324,"width":810,"height":12}},{"id":"975d61e4-1397-4fbb-b60e-520757a823e8","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":181,"box":{"x":69,"y":339,"width":802,"height":12}},{"id":"09beb9ad-2d2e-4a63-ae28-e11c432f6aa7","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":181,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"b505128b-b457-4dfd-ab76-0bb388db16a1","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":181,"box":{"x":68,"y":370,"width":823,"height":11}},{"id":"d2adb12e-ea2a-4866-83b0-d1a1bb7d1924","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":181,"box":{"x":69,"y":385,"width":743,"height":11}},{"id":"adc7a8e4-a97a-4aa5-8d27-6998ff060d28","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":181,"box":{"x":69,"y":400,"width":814,"height":11}},{"id":"f1a2d08f-afbd-4026-a8da-e4d90baf9128","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":181,"box":{"x":68,"y":415,"width":422,"height":11}},{"id":"c120a41d-2f2b-45fe-92c7-0e7013ad7fb0","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":181,"box":{"x":101,"y":438,"width":720,"height":11}},{"id":"2df4c20c-9365-44aa-a634-eace4137ceea","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":181,"box":{"x":70,"y":452,"width":813,"height":12}},{"id":"6de12a8e-f4d6-4190-ac64-2c49f796d688","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":181,"box":{"x":69,"y":468,"width":781,"height":11}},{"id":"e2de9797-95e1-4d4c-a092-bc3e3cca6c91","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":181,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"25fa7f4e-2bf5-4875-b841-8011f21eae03","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":181,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"7631bdc9-cd7f-43b7-8f9d-1b52d2f3c456","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":181,"box":{"x":68,"y":513,"width":815,"height":11}},{"id":"a35e703c-5276-4101-ac52-c1c6c10b3142","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":181,"box":{"x":70,"y":528,"width":801,"height":12}},{"id":"b0133da2-7b49-4a6c-8e25-c8de6a52a0e0","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":181,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"263ec72b-14d3-4d61-9650-89249f7d1cfb","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":181,"box":{"x":69,"y":559,"width":811,"height":11}},{"id":"0551d101-8852-44cf-9d11-76b3265947db","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":181,"box":{"x":69,"y":574,"width":686,"height":11}},{"id":"72be00d8-9c16-46dc-a5be-95bf5eb6bb1f","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":181,"box":{"x":101,"y":596,"width":796,"height":12}},{"id":"99feeeb6-f778-4d83-95e3-006a04ab4423","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":181,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"e228f93b-8b55-4591-ab8d-dd9b90ca0e4f","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":181,"box":{"x":68,"y":627,"width":817,"height":11}},{"id":"d1cac16b-2cba-462b-90ef-85d5791ade5d","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":181,"box":{"x":68,"y":642,"width":837,"height":11}},{"id":"d54ba688-c3dd-4c87-a3cf-799877e74578","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":181,"box":{"x":69,"y":657,"width":759,"height":11}},{"id":"87b9cf0f-0353-4a93-95ea-23182bb33761","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":181,"box":{"x":101,"y":680,"width":779,"height":11}},{"id":"c94720aa-6ea1-489b-a000-b8eed3b472d1","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":181,"box":{"x":70,"y":695,"width":819,"height":11}},{"id":"f821a8a3-3721-4755-a5d3-8c1b8eec8335","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":181,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"07887bad-5590-4cf8-b909-679374d51478","block_type":"box","text":"less than their original cost.","page_number":181,"box":{"x":70,"y":725,"width":196,"height":11}},{"id":"edecda15-ef8a-4f46-a94f-08efd47e1381","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":181,"box":{"x":102,"y":748,"width":782,"height":11}},{"id":"50fe25fc-2e35-401e-a099-cb1ed1ff428a","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":181,"box":{"x":68,"y":763,"width":836,"height":11}},{"id":"2e417581-be92-4206-9903-7a09599d5334","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":181,"box":{"x":69,"y":778,"width":807,"height":11}},{"id":"4b5f1347-5514-4c90-a995-fd56fc349e74","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":181,"box":{"x":68,"y":793,"width":820,"height":11}},{"id":"4a5f6e00-25c0-4b68-8695-7c5af3654dd3","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":181,"box":{"x":68,"y":808,"width":824,"height":11}},{"id":"1813b82c-d431-4342-bc0c-de9f591e2860","block_type":"box","text":"lower amount of expenses is deducted.","page_number":181,"box":{"x":70,"y":823,"width":278,"height":11}},{"id":"29bc6c8b-4d02-4220-bb45-5ef2ea746bed","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":181,"box":{"x":102,"y":846,"width":741,"height":11}},{"id":"0f2942dc-4624-45ce-82a8-e06cbcd84a77","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":181,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"2a881a72-b6fe-47c1-bcd4-254d7530b3d3","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":181,"box":{"x":70,"y":876,"width":646,"height":11}},{"id":"82616770-bc88-438d-9a36-5fb4cd287540","block_type":"box","text":"Money Magazine, U.S.","page_number":181,"box":{"x":724,"y":876,"width":156,"height":11}},{"id":"6f72490b-dde4-45b5-9185-762b1223caf9","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":181,"box":{"x":70,"y":891,"width":533,"height":12}},{"id":"c9a4d831-51c6-480e-960c-e36578ca7401","block_type":"box","text":"or other industry publications. When","page_number":181,"box":{"x":608,"y":891,"width":257,"height":11}},{"id":"6d0b8bd7-93ca-44d0-aca3-248468f8f2b2","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":181,"box":{"x":69,"y":906,"width":797,"height":12}},{"id":"f0b2500d-8122-4392-a601-a40954b57e80","block_type":"box","text":"II-137","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dc04c0ed-a2e2-44bd-9624-fd7813c7377b","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32065be5-11b7-44bc-bbea-e19b0b25d7e3","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":182,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"b0fc7ea4-03f4-4b54-adee-fbe59d55d8d0","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":182,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"ea5fefdb-1d59-43b0-a0ac-12c743e51aae","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":182,"box":{"x":70,"y":75,"width":818,"height":11}},{"id":"603003d5-1a6b-49ec-99e0-54f859985722","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":182,"box":{"x":69,"y":90,"width":793,"height":11}},{"id":"45361428-ecdf-42cf-871e-710acf507e66","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":182,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"417169f0-d581-4e77-825c-220205ed2ea6","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":182,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"fb6bdac2-470d-4ab0-9895-ef8058585b9a","block_type":"box","text":"developed by Fund management.","page_number":182,"box":{"x":69,"y":136,"width":233,"height":11}},{"id":"5bc20c37-fb1c-41b4-9b7f-754ab68f39ef","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":182,"box":{"x":101,"y":158,"width":780,"height":11}},{"id":"d2d1c97c-f175-4d6d-b26c-f6f7c505fbd4","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":182,"box":{"x":70,"y":173,"width":810,"height":11}},{"id":"6b61fc80-37e0-4ed8-bc89-243bcf27ae94","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":182,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"14df5430-2785-48b3-9b5c-ad94b7f30946","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":182,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"591a29f0-34cc-4dad-8196-8edda3b62a97","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":182,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"df6c66be-f734-458f-9919-43693c3fbbf3","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":182,"box":{"x":70,"y":234,"width":835,"height":11}},{"id":"5e1868e3-2724-44c6-bdd5-3f5b2aaa8d97","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":182,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"9b795276-c6af-4d71-a9ba-9b32629a4037","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":182,"box":{"x":68,"y":264,"width":461,"height":11}},{"id":"1ad0cc39-77d2-4ae6-995e-307fe49ecfcf","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":182,"box":{"x":308,"y":293,"width":362,"height":10}},{"id":"988bb924-c145-40c3-8a1f-7f502336f202","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":182,"box":{"x":101,"y":316,"width":802,"height":11}},{"id":"2b92c3da-f16e-4136-bad3-96c37c5d5a91","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":182,"box":{"x":70,"y":331,"width":809,"height":12}},{"id":"e5c6bdf3-748b-42ce-90d5-3fad5fce0b66","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":182,"box":{"x":69,"y":347,"width":833,"height":11}},{"id":"e75114bc-f8a7-49a0-bf82-36c472d14afd","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":182,"box":{"x":70,"y":361,"width":755,"height":12}},{"id":"d2254c73-b4da-45d2-94dd-9f75cd0dfc75","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":182,"box":{"x":101,"y":384,"width":785,"height":11}},{"id":"b0ab4f47-de99-409e-9f4d-948a9233c845","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":182,"box":{"x":68,"y":399,"width":822,"height":12}},{"id":"59eeca63-8464-48e9-924c-7c42d9b09e1d","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":182,"box":{"x":70,"y":414,"width":824,"height":12}},{"id":"bceda69f-46f1-49f4-849e-2db907821df2","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":182,"box":{"x":68,"y":430,"width":812,"height":11}},{"id":"7b482c1d-f961-4006-afa8-213a6b90f296","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":445,"width":392,"height":11}},{"id":"753aed68-9e1b-4c08-948a-bc6c6509d5b2","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":182,"box":{"x":101,"y":468,"width":749,"height":11}},{"id":"7388a5f1-1751-4cdc-86f4-92cb98515a8e","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":182,"box":{"x":70,"y":482,"width":759,"height":12}},{"id":"18f03b4b-40e7-4551-80f3-06485b037b8a","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":182,"box":{"x":70,"y":498,"width":830,"height":11}},{"id":"1fbf63da-483f-484e-8126-d00d03f9d0cd","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":182,"box":{"x":69,"y":513,"width":838,"height":11}},{"id":"f7c01666-0702-426d-a89f-d869b232d44b","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":182,"box":{"x":68,"y":528,"width":822,"height":11}},{"id":"14f65eaa-e5ab-4603-be05-57b7811fd05d","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":182,"box":{"x":69,"y":543,"width":392,"height":11}},{"id":"29afba21-3fef-4f97-b5e9-d37484590afd","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":182,"box":{"x":102,"y":566,"width":767,"height":11}},{"id":"3cbebde6-d144-4a78-84d2-dcb4223e2209","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":182,"box":{"x":68,"y":581,"width":827,"height":11}},{"id":"b7438af2-9f49-486d-be8b-10a5f93e3a52","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":182,"box":{"x":69,"y":596,"width":819,"height":11}},{"id":"81ad4090-ee59-465c-8858-0571e9478a6e","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":182,"box":{"x":69,"y":611,"width":684,"height":11}},{"id":"c7e99530-0b7a-43c0-959e-a3d515281096","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":182,"box":{"x":102,"y":634,"width":766,"height":11}},{"id":"36d6ca10-9444-416e-b1d3-4b81976d53f0","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":182,"box":{"x":69,"y":649,"width":784,"height":11}},{"id":"2faaf591-6ff6-4641-ba64-4e18d6d9b580","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":182,"box":{"x":69,"y":664,"width":805,"height":11}},{"id":"48411207-9873-4a6d-bb22-964e86a32158","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":182,"box":{"x":68,"y":679,"width":790,"height":11}},{"id":"df34bc31-6faf-44a5-8729-ec2cda82b0b2","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":182,"box":{"x":70,"y":694,"width":810,"height":11}},{"id":"cdf2089a-c100-45a5-85db-dc60bbba522d","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":182,"box":{"x":69,"y":709,"width":788,"height":11}},{"id":"29430d5f-6e95-482c-a543-e4edf7f2cb62","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":182,"box":{"x":69,"y":724,"width":327,"height":12}},{"id":"a6fd9b9a-2b51-42fa-b979-e3fc63359322","block_type":"box","text":"GENERAL INFORMATION","page_number":182,"box":{"x":391,"y":754,"width":195,"height":10}},{"id":"0449aaec-1b57-4548-8543-951c81bb8d7c","block_type":"box","text":"Description of Shares","page_number":182,"box":{"x":69,"y":784,"width":156,"height":11}},{"id":"81741599-1556-4d0c-9f12-b9c3c0fe4e7b","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":182,"box":{"x":102,"y":807,"width":800,"height":9}},{"id":"c5cc5167-f08e-42cd-a94b-6b2d8d825a60","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":182,"box":{"x":69,"y":822,"width":811,"height":11}},{"id":"e72caa44-ed08-457a-a455-64778539cba1","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":182,"box":{"x":69,"y":837,"width":825,"height":11}},{"id":"90eafe85-4a55-4ce3-ba26-79768c1bc6c9","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":182,"box":{"x":69,"y":852,"width":838,"height":11}},{"id":"8fb9cb2b-3534-4b33-ab67-6674eeb3073a","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":182,"box":{"x":69,"y":867,"width":835,"height":12}},{"id":"e68bd63c-7479-4fe8-b405-3428804a642c","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":182,"box":{"x":69,"y":882,"width":781,"height":12}},{"id":"37e0a50a-b2fc-43e0-ba38-7d1d4ff5c457","block_type":"box","text":"II-138","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"98bce478-cea6-4db2-ad4d-3f08f8c7f055","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ee327cf-d20f-4385-bf42-535fca9106e6","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":183,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"5d4c652a-6ca3-40da-bd01-4880584c849f","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":183,"box":{"x":69,"y":60,"width":760,"height":11}},{"id":"f06502b5-0170-41de-ab37-3e2d8e52d4d6","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":183,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"e3ea4d6e-df6a-4c2e-a5b2-b05a76fd74d4","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":183,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"ac9635f5-cbec-4c0c-a3d6-948f1cd75f09","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":183,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"51bdd2bf-8665-4247-a497-c4d7c60fbdd5","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":183,"box":{"x":69,"y":120,"width":797,"height":11}},{"id":"b9d21eda-ed3d-4e7b-b93f-84e77298d5b7","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":183,"box":{"x":69,"y":135,"width":658,"height":12}},{"id":"a65a5e58-20ab-4d35-9573-aa88e4f88ea0","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":183,"box":{"x":102,"y":158,"width":741,"height":11}},{"id":"87e97bfe-9091-4527-8657-a13cab5fffcb","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":183,"box":{"x":69,"y":173,"width":790,"height":11}},{"id":"4eed8b4d-87d1-4b73-9054-827cda4345c7","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":183,"box":{"x":69,"y":188,"width":546,"height":12}},{"id":"5aa2688a-dfce-4ec1-b20c-4e5c1cdab0c5","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":183,"box":{"x":102,"y":211,"width":712,"height":11}},{"id":"9d52d2b3-abf1-48e8-aee8-414b47037310","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":183,"box":{"x":69,"y":226,"width":765,"height":11}},{"id":"afee4cbc-f2c9-477d-bb10-f33111388e1c","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":183,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"fa053a23-d26e-4200-b1e1-6ce23cc0471f","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":183,"box":{"x":68,"y":256,"width":729,"height":11}},{"id":"a77375ef-c60f-4ab6-8e88-50fa7b01694c","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":183,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"eeb72e36-b3fd-4f49-bd19-6043a5f8388c","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":183,"box":{"x":68,"y":286,"width":761,"height":12}},{"id":"b207bde0-cae1-4a67-824e-98d485201741","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":183,"box":{"x":69,"y":302,"width":824,"height":11}},{"id":"a7515077-1369-45bc-a699-c261e42991c2","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":183,"box":{"x":69,"y":317,"width":839,"height":11}},{"id":"0c39bf0c-00a8-4bf0-94fd-636c7712599e","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":183,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"67743e9a-4df5-4904-b2ea-81d2acf1cffc","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":183,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"aae4ea06-ba40-4e87-b6b2-2898fb0f583e","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":183,"box":{"x":70,"y":362,"width":699,"height":11}},{"id":"e8fb2c22-cc10-4ea5-bfba-bb35021ed392","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":183,"box":{"x":102,"y":385,"width":413,"height":11}},{"id":"240330a5-5863-43ce-beac-d86d5daea54e","block_type":"box","text":"Additional Information","page_number":183,"box":{"x":68,"y":415,"width":161,"height":9}},{"id":"e9aa931d-e7dc-47a0-b165-cca59fdfabbd","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":183,"box":{"x":102,"y":438,"width":789,"height":11}},{"id":"ee6f1680-6cc2-4bf4-9eba-bc4534edcada","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":183,"box":{"x":69,"y":453,"width":799,"height":11}},{"id":"077cb55a-871b-4397-a6ea-ba4a972abe4c","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":183,"box":{"x":70,"y":468,"width":837,"height":11}},{"id":"e5eca64c-a091-42bf-94e7-fa90bede9a90","block_type":"box","text":"such name to any other company.","page_number":183,"box":{"x":69,"y":483,"width":238,"height":11}},{"id":"4a6a9061-d10d-475b-bf94-1bdce3259abc","block_type":"box","text":"II-139","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e8f88f93-5cf0-4ab6-8448-fe7e07d9ff15","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4c2762ea-6338-46c8-9bba-5c8ee482e60c","block_type":"box","text":"APPENDIX A","page_number":184,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"23b13c84-5ca2-4e9d-a5bb-1d3fbcee9383","block_type":"box","text":"Description of Bond Ratings","page_number":184,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"f4abf051-7863-4dd4-8aa7-719b1ca28190","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":184,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"04f5db81-a57c-4a1b-9fdf-00204aa06066","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":184,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"a1d881a1-9f05-467a-94fb-d3de31881689","block_type":"box","text":"time to time revise such ratings, they under take no obligation to do so, and the ratings given to securities at","page_number":184,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"4a779cc2-51f2-4127-bde5-033151ff5d0c","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a par ticular subsequent","page_number":184,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"bdff78f2-8e27-487d-99ef-ed52145e11a8","block_type":"box","text":"date.","page_number":184,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"bc96182e-6767-422b-be7a-81a5dc12ef89","block_type":"box","text":"NRSROs may rate specific investments (","page_number":184,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"5ff65a96-1885-4dec-b1f0-6609a27b040f","block_type":"box","text":"e.g.","page_number":184,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"b441ea0f-a0d4-47c6-a7b5-c48b65221d4f","block_type":"box","text":", bonds), issuers (","page_number":184,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"4ec2488e-0700-46f8-8c30-927aa7b1bdbb","block_type":"box","text":"e.g.","page_number":184,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"71488b22-f8b4-4402-b0a4-1fab627a0703","block_type":"box","text":", corporations, governments and financial","page_number":184,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"d49fe3f1-e749-47d4-ba1b-8c6da829baaf","block_type":"box","text":"institutions) and/or programs (","page_number":184,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"cc0bdff1-98c7-4846-b075-5e46dea6018c","block_type":"box","text":"e.g.","page_number":184,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"62883856-c228-460c-8845-7c2a983ce508","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":184,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"f9a722d8-a0e4-4bad-a395-bbe1e2438b04","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":184,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"4d00b0f5-76ee-4965-ba44-8d25414841e0","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":184,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"99dd166d-adf8-4b7f-9b4a-1e402efc3a5d","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":184,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"a65cd81c-5517-4e95-b0c8-fca47028e1cd","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"bb488d99-d9d1-4e0e-beac-634728dc087b","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":184,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"79e6efed-4f00-41e2-84e1-3c3a83bf16cc","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":184,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"64f1422c-894d-4e74-a801-0a265d183407","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":184,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"9bbfbab7-23f9-4be7-93a7-d347a2edd331","block_type":"box","text":"security (","page_number":184,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"c812f46a-f909-42c3-b612-504f51412dca","block_type":"box","text":"e.g.","page_number":184,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"ae7b140a-21a5-486f-8b32-c7ed7c43c38d","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":184,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"d60b12e7-7392-4186-bee2-2ac761e8d588","block_type":"box","text":"highest of the multiple ratings.","page_number":184,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"78be4ebe-eaa9-4ff0-937c-4c921aabbcd2","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":184,"box":{"x":102,"y":348,"width":751,"height":12}},{"id":"cca04ed8-4317-47a5-aa60-29d5cb676961","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":184,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"bb0d5d10-887f-4b0b-810a-f0c03bcb977d","block_type":"box","text":"determined by the underwriter and/or issuer) or a NRSRO rating for the issuer of the security. If applicable, when","page_number":184,"box":{"x":69,"y":378,"width":804,"height":12}},{"id":"d0fa336e-ccd1-4f1e-b1a4-d6ef4ad3128c","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by a NRSRO, BlackRock may attribute","page_number":184,"box":{"x":69,"y":394,"width":831,"height":11}},{"id":"3556c47e-b8b3-4c2c-bc85-a022970ddebc","block_type":"box","text":"an expected rating to the security based on: (i) the expected rating of the security set for th in the preliminary","page_number":184,"box":{"x":69,"y":409,"width":777,"height":11}},{"id":"6e9684f8-f5f6-4ced-a1ac-6ee7b96b1a0d","block_type":"box","text":"prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in the","page_number":184,"box":{"x":70,"y":424,"width":779,"height":11}},{"id":"0d966f94-2df3-4ead-be4d-f8fbe689f081","block_type":"box","text":"preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a","page_number":184,"box":{"x":70,"y":439,"width":819,"height":11}},{"id":"b258a276-5f10-4e69-be19-5c0c795dd7df","block_type":"box","text":"prior issuance having a similar structure or the same sponsor.","page_number":184,"box":{"x":70,"y":454,"width":441,"height":11}},{"id":"4ad24530-be83-4c04-92d7-92665206dabd","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":184,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"5a7349b8-ab04-40f5-a117-9d0c4b1f8add","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":184,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"e6ccfd32-4dd2-42fd-b7d2-4cbf403c25b7","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":184,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"dc7cda65-69e3-4d30-a084-4903d52f44c8","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":184,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"cfa10ccf-87bb-439b-acf0-129efb513cbe","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":184,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"d5662775-3ac9-4687-a0dd-860bf9de6fc4","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":184,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"fae79973-5497-4fd4-9dd8-2a62f4ac1c3a","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":184,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"ebe4e269-9d44-408a-82d8-512c47c40d64","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":184,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"68149a3d-8ec0-493f-bc9c-068b10108fab","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":184,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"d8f117c7-9527-417a-a649-7897543f1680","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":184,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"bfc4b868-5e25-496c-8461-556929deb729","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":184,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"3be4173c-993f-4b9f-a2c4-0e850889c452","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":184,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"488935c0-1665-4d25-85ff-1c6c74c555bb","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":184,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"27323c83-358b-4295-951a-462ad382c8d1","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":184,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"bd1ad369-f86e-43ae-8054-d210f336f79a","block_type":"box","text":"Fitch.","page_number":184,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"4f150cdf-525c-49e8-b7a1-6673c9267ca1","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":184,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"8df927db-6c3d-4519-9faa-f922f60bac14","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":184,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"2a8cb674-75e4-4a1d-aa0e-4555cae213d2","block_type":"box","text":"Ratings assigned on Moody’s global long-term and shor t-term rating scales are forward-looking opinions of the","page_number":184,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"11a2b2df-8b38-4ce5-afbd-898617b0901a","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":184,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"99f5facc-1e77-4fdd-a75b-2eb9dd1422a8","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":184,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"6fe23cf6-f945-43dd-ae08-7739971aaa9a","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":184,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"0f43c8d0-e92f-450b-9561-4994095ad8e3","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":184,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"2f59a3ab-59d9-4551-93bd-fda8a634b635","block_type":"box","text":"for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based upon standard","page_number":184,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"76d1d2fe-87e8-4a29-a80a-8ec06ee69b27","block_type":"box","text":"sources of variation (","page_number":184,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"8ff9fce7-b5db-4d76-bbe4-f2336e798f5a","block_type":"box","text":"e.g.","page_number":184,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"91355b85-e9c1-46ce-8138-b7232beccf22","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses the issuer’s","page_number":184,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"c8547df1-9319-43d4-88ab-b3fb273239c6","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":184,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"09efa54f-11db-43f5-b64c-f2d2d205b0b0","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":184,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"e98e2f01-9b7c-4852-9b4b-bfe844883cb6","block_type":"box","text":"e.g.","page_number":184,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"c338b194-e1b7-4cec-a584-b6278b1dfbb4","block_type":"box","text":", equity indexed), absent an express","page_number":184,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"01b85549-7ac0-43aa-8db0-aad415b106f2","block_type":"box","text":"A-1","page_number":184,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"c99bf83d-7531-479b-b207-f8f264a59d9c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"767cf7f7-a069-4cbd-bf1e-38a83e5b65f6","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":185,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"37b583a7-bbce-43e8-850b-3ce51428318f","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":185,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"cb783a1f-ecec-4e07-8b9c-ef72a367bb18","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":185,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"345a9619-9e6b-406a-85a8-cb999122e17a","block_type":"box","text":"impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen months or less and","page_number":185,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"88a40eeb-1fc3-4bdb-bc9f-66603f274c18","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":185,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"2e04d095-2a51-4ca7-83b9-7e0714deda4c","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":185,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"a11efb9d-3be5-421a-9490-bb9767010815","block_type":"box","text":"instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly available","page_number":185,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"55f0c90b-5286-43a0-bf2c-24b3a6c22cb1","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":185,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"809d5db7-8c92-4d4f-b2f5-efa30c344b14","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":185,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"d6d33c53-7e6f-48d5-94fb-ea3dbb2f7bd2","block_type":"box","text":"i.e.","page_number":185,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"f651c6c8-994b-41d5-ae08-9ebbb1ede52c","block_type":"box","text":", ratings on nonfinancial","page_number":185,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"1e8b2d41-97f0-4812-b9c4-f2d1f13c8f83","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":185,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"5130347c-c2f8-4c28-82be-382ecf28d186","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":185,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"b74ff6d8-442e-434e-be49-dd5f382ce88a","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":185,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"77ba744b-c6f3-4ba7-976f-d55fbb611d0d","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":185,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"0308d5dd-0108-47e4-8123-5641a790c2ac","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":185,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"b5e9c49e-7be7-44dd-987d-9ce8c74a6b48","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":185,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"0c874058-49f6-4a9a-b804-a483ca3d9c19","block_type":"box","text":"of time.","page_number":185,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"63e351c1-43f4-4026-be2b-e85bfb601d75","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":185,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"13a73b07-2bd0-4797-bfeb-71ec28d62d2c","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":185,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"2caa35b6-51f0-47e0-ae3b-9f2e752e8860","block_type":"box","text":"risk.","page_number":185,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"e834d4ce-c07d-4bf6-88a9-d893b54b14c2","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit risk.","page_number":185,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"34034b50-1054-49de-87c7-7412c99aa1ef","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":185,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"dc33ffe1-7890-4268-96d6-cc661bb8388b","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":185,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"58557ad9-36c3-40ff-903e-c889f2f0441b","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":185,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"a97cddf9-fe74-4a97-b710-b0e97bf58d85","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":185,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"4dec76b4-6b08-4686-acd0-c08387697118","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":185,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"a83ebc3b-15b9-4594-a074-57dc64f161cd","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":185,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"79aae6ed-5fc4-4762-98da-2133b1539bf8","block_type":"box","text":"credit risk.","page_number":185,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"07f2e782-b53a-4977-a462-52eafdb3855a","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":185,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"ef331ef0-4363-46f7-94a6-1776e141175f","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":185,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"ee2e3c06-d05d-4026-bb31-719454ae393b","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":185,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"d63962dc-1035-4e1f-98a1-c5e5b56e42c2","block_type":"box","text":"of principal or interest.","page_number":185,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"0fc46e27-236f-4741-b9c7-5086e0c0e5c4","block_type":"box","text":"Note:","page_number":185,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"48aace3e-44c8-4c05-b15b-7510387d5c62","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":185,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"9d85e609-a57f-4405-a253-39a1dc5053f4","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":185,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"4b662109-6feb-49a0-b7d2-7cb728d863cb","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":185,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"2ea2cde5-a67f-4181-9065-1874da11481c","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":185,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"d474a6e1-8ad2-4a12-8d2c-4f2aaa021280","block_type":"box","text":"companies, and securities firms.","page_number":185,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"c8dabe80-f2e2-46ca-9399-69d89cfdbfc7","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":185,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"5b344bb4-a583-4ad1-a746-5147d520ace8","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":185,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"b15228e2-2aed-4320-ab96-218f22c63b01","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":185,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"cebf6cf6-2edc-4921-a3b9-6f0ba09d258e","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":185,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"3ae82329-f94f-4698-9e1a-c655a7fe1372","block_type":"box","text":"that security.","page_number":185,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"888220fb-7029-4728-99c3-6696aca4c8ef","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":185,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"24326217-393b-4072-8221-7c2ccea6e509","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"a634c467-c61c-4617-9405-70bf8438a8ad","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"9cb14701-3842-4c69-b994-4469be38356c","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":185,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"37f90686-32e4-4519-b392-9804bc232223","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":185,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"8d983ea2-f688-4d6f-94f3-8155a52205e6","block_type":"box","text":"categories.","page_number":185,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"0e392162-35f3-4e29-9572-16344a55f1ed","block_type":"box","text":"A-2","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"9d69af7c-16b9-4219-b46e-47cdda08cff3","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25770b11-a48f-4da9-bb14-890ac9e2de7e","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":186,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"313dc468-49b8-4f6f-accb-924cad228b4a","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":186,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"f15bc567-f7de-4316-8482-a1ab6a0a8a12","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":186,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"4d307a10-af64-493f-80ae-a5593bd12390","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":186,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"b73f5f06-27f5-485b-97ed-dc85a191ee62","block_type":"box","text":"an issuer’s self-liquidity.","page_number":186,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"ff19ee4b-4bb1-4e62-91b9-e9bca785a5ad","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":186,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"dd170187-7620-4883-9e01-c911f18be41b","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":186,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"e34882b4-9b79-49ad-8971-33bd16d19bcb","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":186,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"9eebc46e-71d7-4dbe-896a-b3a6bbe65b71","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":186,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"d2a1a3bb-fe1f-4fc9-9001-4c87c030ac59","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":186,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"d590e90d-aa77-49da-ad7e-179da2bcafe3","block_type":"box","text":"MIG Scale","page_number":186,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"347e8147-5b46-4ed3-8270-c145ee423025","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":186,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"d3df14a6-2749-461f-bd66-9bc38528db25","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":186,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"b0a2deb0-c8af-42d8-971c-d4d8326a75aa","block_type":"box","text":"refinancing.","page_number":186,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"9f98dd7e-f0a2-4c1c-9b99-535daa01938b","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":186,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"a8f55114-fc39-4b67-927f-d39b85a87772","block_type":"box","text":"large as in the preceding group.","page_number":186,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"294c829b-6e67-42fd-98e1-7e6f575ae7d2","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":186,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"1d0afbb3-dba8-4bfc-af8e-12242625d835","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":186,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"4af2168a-0b83-403b-9f16-7e613ea4b0e9","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":186,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"4d729ae5-b921-46c1-b265-0eb3d85e6bcf","block_type":"box","text":"lack sufficient margins of protection.","page_number":186,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"6c58eab8-4145-4440-b023-7281efb31813","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":186,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"10d614e2-c1b5-4e66-ae8b-07a2a4d66305","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":186,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"fc8ab5c0-96df-44da-a78c-ec3288f21c31","block_type":"box","text":"are a long-term rating and a shor t-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":186,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"2e7aa4a5-0106-49c4-8b92-3aab18581ddf","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term demand obligation rating addresses the ability of","page_number":186,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"c96a2dfa-f6b9-4d0a-bda1-c7f59e247a22","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":186,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"365cb39e-c8c8-4fc1-a6e2-f530214a7d9f","block_type":"box","text":"(“demand feature”) of the VRDO. The shor t-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":186,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"01392cba-052a-4fef-982a-7fbe51bc3da0","block_type":"box","text":"liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t provider, or the long","page_number":186,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"599c69b3-5b20-4f41-8c47-28edb5b0739c","block_type":"box","text":"term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of VMIG ratings of","page_number":186,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"53ea7c6f-3b3f-421c-84fb-89166cf79fb2","block_type":"box","text":"demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to reflect the risk that","page_number":186,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"e32fd6f9-4985-42e8-8b62-c75666fadb7c","block_type":"box","text":"external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment grade.","page_number":186,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"844131cc-2902-4b66-91fb-3ff7cc1717f3","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":186,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"918bfbb8-decb-46d0-8bbb-015187c88dc7","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":186,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"e18d50ad-f8a7-4032-93b1-ac2ef323819f","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":186,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"56e6334e-8fc9-4497-aa01-0855fdddc8b8","block_type":"box","text":"VMIG Scale","page_number":186,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"2f19382d-f278-4d8c-9397-44f7afb3e4a5","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":186,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"7b72e480-2140-458a-9366-b3749458fb5d","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":186,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"a1f49dd5-cef6-4a56-a961-f7147588df90","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":186,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"188242ad-771d-4b7a-961f-36c315960753","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":186,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"07d7b38b-fa72-489c-ac74-ac467beff20f","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":186,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"59e5b02c-2fe6-46c2-84a7-fe87d28a0c4c","block_type":"box","text":"payment of purchase price upon demand.","page_number":186,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"3ead0939-e925-4602-9d3c-cd55f951cd55","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":186,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"44ba8881-a438-4c57-8c47-b0cb2f9dd14e","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections","page_number":186,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"06317390-ad8a-41b1-83eb-928a3ff3cd9b","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":186,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"1dfcf4ef-3d13-467b-920a-2679109f401f","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":186,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"60580233-3c70-4016-ae95-c29b541f76e2","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":186,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"00db08b9-bc33-4e0f-aa08-93c1e331f325","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":186,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"57aec2cb-142c-4e44-ac85-1989893aa820","block_type":"box","text":"price upon demand.","page_number":186,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"a79ad111-de51-4c6d-bcb5-5aaac2c5878e","block_type":"box","text":"A-3","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"4eb3a237-e302-42d5-b4c4-f10bcd7dd004","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c807c678-0ee8-4c8e-a50a-0a8f45f920d4","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":187,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"5ef80426-f2ec-4dae-bef4-5ba40f1adaa6","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":187,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"7f960ee0-f88f-4461-ae24-cace374ac8d9","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":187,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"e2dfe708-e5d2-4ef4-aa31-42c1e3f8d96d","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":187,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"876a93c6-95f9-4750-8f47-f423c3a7c39d","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":187,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"ea2a190b-86d6-4425-bb09-32a6c38f36ee","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":187,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"852be363-6326-4430-bd52-46d01b71df87","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":187,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"d681f921-f6ec-4101-9835-aa7da1608226","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":187,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"56cae366-8db6-43dc-bd21-e710b0cce074","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":187,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"a7788168-eb48-4ca8-b22b-fc6d3e74420a","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":187,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"b98bd025-68d6-4c65-808b-62dc833fcef3","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":187,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"9f6d36f9-2279-4e91-9ca1-849a617a8169","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":187,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"c4253cbd-afbc-4d93-aad2-46e251f28064","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":187,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"384a443d-f639-4ad9-8862-c836d4032156","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":187,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"9b0ec023-4011-4d6b-aa29-42883bb2a5b7","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":187,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"a86e35c4-d860-4115-9aac-e5b96dd250a2","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"ba385c81-f4eb-4ff4-9f3c-bc50d6767f5e","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":187,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"7d3a9d9e-e366-48cf-be3e-a9ea105f4fdc","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":187,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"340503f6-b3a0-4a31-8eb7-872cbd98b7da","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d85773d8-503c-4fb0-90e6-f5847e6e9325","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":187,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"f060e4ff-556e-4d78-8112-517ca052c111","block_type":"box","text":"•","page_number":187,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"c7b6e20a-b9f4-450c-a8e9-ac4a21edd671","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":187,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"a07ec6be-530f-4806-b7d4-13b6a80b979f","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":187,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"3d883985-1e59-44c7-9f52-8940ab565424","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":187,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"42fc3834-2890-4238-a5e8-af9e822ba0e8","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":187,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"f181c20c-6934-42d0-b957-fe64dee8819c","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":187,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"16e2387f-ac48-4970-bddd-9a8aae8243b9","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":187,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"db5d0b3a-6e08-440a-839f-66baffa9ac1b","block_type":"box","text":"obligations.)","page_number":187,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"920a4785-2407-47d5-ae50-e61cb57bd52f","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":187,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"76f1d119-9991-4bd8-a901-36ad1fe0dbb3","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its","page_number":187,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"42fda7d0-84fc-4de5-8d7e-6eb3fe4b2d19","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":187,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"c308c79c-a0c2-4609-85d0-b9ea48f6525f","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":187,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"0370cab8-5e5e-49a9-9e02-0012c1fe08d1","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":187,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"f5dac201-6cb7-4f04-952e-eb90def2bc9d","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":187,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"e146d750-4103-4d99-b32b-0c99f52f7d48","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":187,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"537ae415-135a-4d2d-985a-731c77d4ec2c","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":187,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"c0c81e88-4b91-4d0d-8901-d2120d7eb325","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":187,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"736212ef-899c-4063-9d47-17ff0d5eb033","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":187,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"138cd19d-89ee-49f1-aaf8-87d0001e6591","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"bf239dd2-9dde-44a7-bcb2-5ca6966dcbd8","block_type":"box","text":"BB,","page_number":187,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"07c9beb1-2fad-403f-808e-4ab59516c880","block_type":"box","text":"B,","page_number":187,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"5a71ae24-693f-46c4-ba6c-380580e026ba","block_type":"box","text":"CCC,","page_number":187,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"48b521f7-17b0-45f4-b467-2a34bbdf01c5","block_type":"box","text":"CC,","page_number":187,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"ef90fef6-f957-4c7f-934b-3275222cfde7","block_type":"box","text":"and C","page_number":187,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"85a09934-4e4d-47e1-84ef-ede188bcf3ce","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":187,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"f171b78c-2e7c-4ad1-bced-e3041abfde20","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":187,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"3f8d5036-64c4-4749-83eb-431c58b87dd3","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":187,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"bdd2c8d3-1e8b-46f7-9b72-7693fb02658d","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":187,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"4935d4ba-56ba-4a50-aa13-f71ba019a62f","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":187,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"6740c40d-b057-4759-a4d5-004067c06248","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":187,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"a5892935-78ee-4a74-ac8c-73d8182028b7","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":187,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"fe4b379e-0512-41d1-89c1-7de7c979fee8","block_type":"box","text":"on the obligation.","page_number":187,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"a13a5f5e-d7b5-4e14-870f-1ad806eaae02","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":187,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"df228763-30d8-4c62-945f-3ad3780815d8","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":187,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"87151e53-685b-4704-8468-1ce69f61c8e3","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":187,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"9e6ba24b-9518-4cae-b737-fcfd3dae26c0","block_type":"box","text":"financial commitments on the obligation.","page_number":187,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"375039ff-1e51-4597-b598-30e52e04d394","block_type":"box","text":"A-4","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"298e63c4-4fb8-4e90-9181-2a3bcb45f675","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ffee016-d939-445d-8b24-7d0a9bd6f7bc","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":188,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"61d5146a-8324-474b-9fb1-3b6fffa52228","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":188,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"66808d47-c3f2-4656-971c-ab75ca33b325","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":188,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"5a5985ea-b94f-427c-9e97-de60c599dca8","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"eb8f1d75-08c3-4c00-96bb-1e007b778316","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":188,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"730031c0-9741-46ac-8c8a-9115adcbc746","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":188,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"6a813e40-4526-4dd9-bf6b-4dd05b4fa9fe","block_type":"box","text":"anticipated time to default.","page_number":188,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"e61f860e-f518-4a4f-bf00-bcc494440a20","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":188,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"ac797afa-2d55-4809-8561-a5dbfe4a130d","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":188,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"e847c4ec-fc4e-46f1-a95b-b85acc401909","block_type":"box","text":"higher.","page_number":188,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"d92d3146-360f-4f88-b033-c885d30059a0","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital","page_number":188,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"65ab743a-4080-4681-9ef1-1e6e2fb42a8b","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":188,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"a6b3a4b1-cc82-4e1a-8b99-c6ae92cbf4bc","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":188,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"858eef54-364e-449e-b59b-12c27273ab29","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":188,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"23684e0f-3684-4ede-a607-ba4f04308d5f","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":188,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"e3099a8c-7077-4f2c-9e23-1e90323793e2","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":188,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"a23396f6-b71b-47a4-a00b-352c7d022cfd","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":188,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"4db56cd2-6290-48d7-b22e-0c596c4ece55","block_type":"box","text":"restructuring.","page_number":188,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"be9aaa1c-be29-4667-bd0a-0e551646ec10","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":188,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"fad384ea-f843-4ae5-96a4-62da0b1eaf19","block_type":"box","text":"standing within the rating categories.","page_number":188,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"a1b8aaa5-df47-4171-8731-99c902564f89","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":188,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"07c58e4e-10a7-4e2e-98fd-26cba72bcc09","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":188,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"9d6fe377-f0a4-4fdd-89c6-a5af133e9d1b","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":188,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"beb7f186-56fd-47c1-903c-b2309dfa236d","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":188,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"1052f733-9ebd-446b-87eb-04951bcf42a7","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":188,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"234afffc-b653-42fe-b70a-aacbcbf57916","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":188,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"f5db0abc-c29c-42bf-af0c-cf085da80e19","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":188,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"9c2fba0f-632a-4d58-a70d-8f52b6035178","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":188,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"38819fac-d9a8-4840-b5af-88a070d8f077","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":188,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"cae60180-f549-426b-9bac-c4d0b20c6e12","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":188,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"a48909aa-4ffa-4afd-a1ec-ba6315a416fc","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":188,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"c197a022-b3c9-45e6-abbb-8a0d2d3a42f8","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":188,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"d5c47211-107e-42d9-811f-34d6bca001e3","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":188,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"fe03fc43-be8d-462b-9d6c-dd70130339d5","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":188,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"26e02ce2-88a6-49ce-9651-f7a13baee604","block_type":"box","text":"financial commitments.","page_number":188,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"07b33b8a-ffcb-476d-ae39-63dd2321dfc2","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":188,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"36cd7744-d900-4796-9a6f-92b6ed51aeca","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":188,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"f7ee806d-39cb-4851-b3d6-2a7c365f1560","block_type":"box","text":"commitments on the obligation.","page_number":188,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"c37757f0-2c8f-464b-85e3-6d10ec9e018e","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":188,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"f99d5a03-c786-4f2f-9383-9e14a506a11f","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":188,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"9214544e-46e4-42a1-a213-30ea454185ec","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":188,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"270fbc20-3946-45ce-b006-e1306e75b636","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":188,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"7da80b45-758e-4f66-86c6-17300f5e27f4","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":188,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"3025599e-126e-48e9-a11c-cf3cd01f544c","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":188,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"5434f928-adf6-4f9a-89ec-d5099e590161","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":188,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"772576d5-a9c1-451c-9faf-228f5d8fa899","block_type":"box","text":"debt restructuring.","page_number":188,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"1c2792d1-c093-4b1d-b973-6272c832a8cb","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":188,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"4e043582-6e13-4ca5-9595-8983a120d8b2","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":188,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"7723e668-2549-4af0-9d3f-e11a69a5b420","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":188,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"12611b28-574b-4e8a-9482-00fc9345f28b","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":188,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"97f3cc2e-ce0a-42da-a375-f4adbc429e7e","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":188,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"8f93f07c-04b7-41ff-abfe-5998c077513e","block_type":"box","text":"A-5","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"0c2e3932-ea3d-4876-8e18-2c718dd1a423","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b883e390-8b76-4dd4-affb-18ab2ffd54be","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"21a03f5b-0e04-4bf1-92be-b96a5dbd3da2","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":189,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"66ea82fa-54f4-46d6-9b37-7df9af6f0f51","block_type":"box","text":"as a note; and","page_number":189,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"0f0685bf-6087-4507-bf39-ec9c21056a67","block_type":"box","text":"•","page_number":189,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"68592dfa-e70c-4fce-942b-53ac25b82664","block_type":"box","text":"Source of payment—the more dependent the issue is on the market for its refinancing, the more likely it will be","page_number":189,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"890e242a-ae56-4998-a12f-9d8d756ce2e5","block_type":"box","text":"treated as a note.","page_number":189,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"88909643-18fa-4edb-9d9b-bc11847c7c04","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":189,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"4b4c7702-4da5-4261-abe5-c826b0316a0f","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":189,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"eb905a8b-b5ae-4f27-8013-fce713ed6253","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":189,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"d63d04c3-a35f-4d3c-b5e4-5e06e946beff","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":189,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"4ad18ac9-440f-4285-aca7-8dc106a1449e","block_type":"box","text":"economic changes over the term of the notes.","page_number":189,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"8397d517-b98b-441b-9a5a-10b69b0b6fe1","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":189,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"04fbaae8-10af-4635-aede-e0ea01cb3af3","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":189,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"bd4ac06e-a329-4d1a-98bf-48a1d4a6de4f","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":189,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"fa124f89-af8c-426c-9885-8987d898addd","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":189,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"ad40cd87-b305-404f-aeea-cd286e6beb76","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":189,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"3e38973c-5b64-45d4-b921-257029f59d49","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":189,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"6d9e1fed-25f4-4bb4-a648-a252201b7552","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":189,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"cd9e6d36-fae7-48bb-bd8f-0f882d2a0c01","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mor tgages, asset","page_number":189,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"69024760-3a2d-49bc-9fad-8384f278d7e5","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":189,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"cdcd33cb-e491-4567-a6ac-cd7d837170ff","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":189,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"93615a09-d1cb-4a59-a7b7-dd3ddfa9945e","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":189,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"3a6d3cc2-fced-4ff9-8313-e647500822e6","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":189,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"648d43d9-daaa-41e6-9ce7-be9b24b17de7","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":189,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"864da6ec-9817-4a57-aeab-177124a877e3","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":189,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"dfd980c0-05f4-4d68-8329-d5012ee4eaec","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":189,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"2e4061fe-1c2c-421a-954d-eef4c2c3a27a","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":189,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"59871a34-5a17-428c-a91d-033017fb40aa","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":189,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"bb16a4e4-f3e3-4cc1-8e6a-a90036144333","block_type":"box","text":"receivables or other financial assets.","page_number":189,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"7301a753-044f-4c20-95af-ce79c537ed97","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":189,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"59165956-d8d2-4e2f-801a-263b52882bca","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":189,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"4396a0da-4704-4cf1-9551-9296c9d59e3e","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":189,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"9139beaa-9441-43c3-ad1b-82029dd0c70a","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":189,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"8bd225db-5d28-4e70-b4a6-4ba35d680e68","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":189,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"de9d79da-118a-43fa-b3fa-040dc1d133b7","block_type":"box","text":"occurred.","page_number":189,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"69165829-a2f9-4d57-80c6-d633ed5416c7","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":189,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"85e58a05-2f85-4e75-ac0b-06f766968b1b","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":189,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"dd27c0f6-8fb4-48d7-b1a8-47c41d527bdb","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":189,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"d399a5b3-e973-48ed-892e-53c66f961515","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical per formance of ratings","page_number":189,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"5df6175b-7977-4973-b757-d228cef1a91e","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":189,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"4031c701-8e1b-49cd-94f6-ee2847910ed4","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":189,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"72a93587-d677-4ee0-af7f-5a3e135ecdee","block_type":"box","text":"rates.","page_number":189,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"882f4378-e1e3-422d-a0e9-b6f09fc971d5","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":189,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"28d06242-6fac-4e82-9f11-d50015c7a736","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":189,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"3d3c2cbd-48b1-45f7-a34f-8fc9ce40569c","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":189,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"5e3b555d-26b3-4d2e-a656-fd6cd4538205","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":189,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"39fb67a3-3777-413f-9bf7-c70737acc98f","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":189,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"bc03bd85-d1b2-4abf-a0bf-35ebe5ebeef9","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":189,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"32a7493b-7f45-4de0-a356-509eeab57cfc","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":189,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"d4330e36-0e3d-44cd-9834-830c4f6be6e5","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":189,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"52a8887a-a431-4d6d-bee8-c19c8ad80752","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":189,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"9be65c26-e7af-4393-85f1-81cc2e9af090","block_type":"box","text":"i.e.","page_number":189,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"4afec555-102d-4499-a123-207fca483ea5","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":189,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"e56c1392-979c-4b06-b697-851f320126fe","block_type":"box","text":"the obligation’s documentation).","page_number":189,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"a9708cb5-be05-41b8-99bd-3da123e521a2","block_type":"box","text":"A-6","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"486c2fce-2fd8-46e3-b0bd-4ec244447f43","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"809c3e5e-b1e1-42a5-b9ff-3e86c92fdc24","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":190,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"ea3d2ede-f938-4f60-b9db-25d65d19f970","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":190,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c93a2398-10be-4ef9-a706-e86cbddbd3fd","block_type":"box","text":"agents in the form of a rating letter.","page_number":190,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"6e502106-7149-4970-920d-79d76a37d3b3","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":190,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"787ace95-40e7-4f0f-a739-2b94bfe4784a","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":190,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"171d88cf-e076-4a46-a82f-5cb87434c4b0","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":190,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"e3d70786-d7ad-4243-8dc3-3ed38f0c832f","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":190,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"1345df21-70ca-4a1c-84e5-10b409e0d106","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":190,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"eebe348d-1278-42ec-b30f-c4fc537eaa3e","block_type":"box","text":"e.g.","page_number":190,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"c80b934a-6e3b-4675-b8fc-88629a29489a","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":190,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"3e851805-2a9c-4aac-95d0-06357f44d689","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":190,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"80a62beb-0318-4692-a77f-19d45f4dc5dc","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":190,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"846f66d8-5027-4fd1-806a-d88267d18d59","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":190,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"48c18ad0-dfca-454d-8577-f21374a593db","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":190,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"2f55ff88-9049-4ce5-984f-5414a636460d","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":190,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"3ed08127-22b5-4e83-be29-331a25a17a71","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":190,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"fc24fc4f-4f44-4607-a8a5-bf29b1b1b8ac","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":190,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"676445c9-2c3d-4908-b867-68dfcbc86f98","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":190,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"c425b8ab-31a9-4b56-bb90-6f37915f76dd","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":190,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"008819c3-91fe-4386-b24c-930e64020d44","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":190,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"b3b51c4a-3809-45ff-bbff-f82b70f2e242","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":190,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"65237b2c-ca73-489b-a460-1880be77fb5b","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":190,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"2a06e210-4dc5-43c4-a9e0-f6531b262d7a","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":190,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"a42ccb7b-33d1-4b16-b47c-9554633c3474","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":190,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"17183b07-9a1b-487b-af3e-3348d704ed44","block_type":"box","text":"Ratings.","page_number":190,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"60796022-3110-482e-b7c2-dc2e6372f47e","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":190,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"60b673db-90e8-4988-879b-b209f09c9a57","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":190,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"d63e953b-5a91-4735-beff-d1cea641ca7b","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":190,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"04f29f39-fc70-4930-a6b7-a4190fb29a02","block_type":"box","text":"obligation ratings.","page_number":190,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"fdfedbf1-f197-4298-8d45-528f525dbc2e","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":190,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"3b7c5c03-f543-41ed-ad6f-a795392f24d7","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":190,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"17473ede-bd64-4c12-8ee0-d13636b422a3","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":190,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"04059768-df9d-4cf0-b6dd-153e6a71c45d","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":190,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"1edc57a6-19c1-4ea3-8f29-2bda2c73f31e","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":190,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"6137cb4d-61ca-4dba-9a08-842bef610dad","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":190,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"85568630-7b96-4ac0-880a-7e3b7be9fa96","block_type":"box","text":"to foreseeable events.","page_number":190,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"2ee66a60-75b2-447e-83c7-33b4d18fd8a1","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":190,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"32bb816f-8462-47f8-b159-bfa41e514302","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":190,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"6b9a5356-f501-4f79-a930-9b6d80c624c9","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":190,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"8d527ce9-207e-458c-bb9c-d32a35be6480","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":190,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"0237c65f-8539-4ca6-9547-87bbd2a8beae","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":190,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"d1530351-ced4-4165-88ad-717000e2c6b8","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":190,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"b677e70b-e843-492f-9105-2fa2c60fb359","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, par ticularly in the event of","page_number":190,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"a506a13a-dd24-4ee8-81b6-8cb3436bd6f9","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":190,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"63f21d4c-1263-4f48-9dde-ee3c2d88c3a1","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":190,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"f6d269bf-d2a9-49b5-bc5f-3e1570ac2f24","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":190,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"b5b7687c-d2c0-4359-8442-2df151e29831","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":190,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"8d5f19f8-b801-421b-b2a5-cc9d0507b874","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":190,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"25646fe2-d249-4ad8-aa87-6ea386c1d133","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":190,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"ca0b3882-6619-40f3-9f2a-dbccc57e38a4","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":190,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"06b5627d-6e6b-4df2-a5bb-017349893447","block_type":"box","text":"relative status within major rating categories.","page_number":190,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"6658982b-623e-4554-8a14-be0c13d64939","block_type":"box","text":"A-7","page_number":190,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"22c9b989-3a64-48a6-a2ac-90cf03f3a476","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7351f474-80f0-4cc8-a1a3-c9bb9bd7a719","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":191,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"2d60ed80-0491-49f7-ba5d-7668935752c4","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":191,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"e8374cce-6352-43dc-ba19-3d18f0e59355","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":191,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"49aa1097-3fdc-4184-89a4-57cfa0f532c9","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":191,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"dbc3c33d-c6c4-49fa-afc8-318cf771f304","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":191,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"18745554-cdaf-4252-9da9-384f4beec193","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":191,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"d346c123-738b-426d-8df4-1286a2a11140","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":191,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"728ea4bc-0242-4372-b622-32f9279b4bbc","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":191,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"91ba27bb-d56c-4c48-bec8-2d9cdc3ffb7d","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":191,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"d2efa51c-cdfa-4aa8-b51d-b17cc39b6f21","block_type":"box","text":"finance markets.","page_number":191,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"7bcab973-3ad9-4038-863d-9ae65a4e3afc","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":191,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"32ad5a19-0e32-409a-a42b-170d7b8dd8b1","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":191,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"9326a9fa-eba0-4dd3-8bcf-fffbce4c6cc6","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":191,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"2af4f9c8-21a5-4ec4-b42f-d59e1dcb5f36","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":191,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"0fd36247-f753-4ac2-8384-a3dda74284b6","block_type":"box","text":"commitments.","page_number":191,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"db8d2cc4-1a0d-4016-b45b-7579a0767460","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":191,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"54c0db4c-5c04-42dc-af32-d7aeae0e12c9","block_type":"box","text":"adequate.","page_number":191,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"3e867e12-b64d-44ef-b4b6-f3715e4972f4","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":191,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"57eab026-6343-4857-ac95-7d388bee9d70","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":191,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"0b6352f0-9177-4965-b545-caa6911da3f2","block_type":"box","text":"economic conditions.","page_number":191,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"8b6845f4-6477-421f-af42-bb34580b4081","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":191,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"1929e76c-80cd-44e4-8565-bf056ffd88ed","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":191,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"3eb97c37-d5de-4391-9106-8d5c3a2009c3","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":191,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"26b030ea-0d6e-46b5-8955-0e74a7e498a4","block_type":"box","text":"ratings only.","page_number":191,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"40e3e25c-49cf-41ed-b50d-b1d289115732","block_type":"box","text":"D Default. 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subject to the","page_number":192,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"57289e35-4ff0-4c46-a7e2-81776cfee46d","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":192,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"743e6457-6494-4f54-8669-88f5d3d78702","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":192,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"8623d07b-02a1-4524-a1b4-ae47d4a20afd","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":192,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"26154d13-9517-4ce7-9b7f-984b49e90311","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":192,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"e41379ed-d9a5-4037-a7b7-88ce553c5a3d","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":192,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"b3993846-8ef1-40d2-ad51-48e57bf19129","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":192,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"abacef99-9c07-4c33-8a56-74b602fd5652","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":192,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"f24a9632-0a2b-454e-9b40-0a460e3d3b15","block_type":"box","text":"Conflicts Management","page_number":192,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"1cc4a0fc-ae34-4b76-9011-1058b7fbcc36","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":192,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"e27c1179-a4eb-47eb-85b3-104100e403c9","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":192,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"8f7bc37d-75fe-4c62-bd7a-61c132384728","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":192,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"44dcb398-72e2-4459-8835-26fd9dd8db91","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":192,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"268578a2-bea8-4b57-800f-5e4d86c2faf6","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":192,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"7bebf355-e58f-459b-bd37-989a236958f9","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":192,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"83ad42e5-cc9b-452b-ae87-3ffe9a80cc02","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":192,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"3865ad19-74b1-4d7a-b09d-b816b3d004ff","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":192,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"ea7f5d43-e65a-44bb-acc8-145d43a96642","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":192,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"bf6e7d88-b03c-4602-b71a-02d554536a5e","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":192,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"8d1f5d01-a59c-4e1e-b62f-6952703c1b0f","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":192,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"92ce8699-e89e-4925-9196-8f46fa5dcca8","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":192,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"f3f50b55-5001-45d8-aea9-b8d2efb797e6","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":192,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"89f86644-5b20-4b0f-ab48-41297e52a057","block_type":"box","text":"connection with proxy voting.","page_number":192,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"3f5b26de-e242-4c21-9124-c04e77333168","block_type":"box","text":"Reports to the Board","page_number":192,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"22d79802-aaac-4bdc-9089-b38b429629dd","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":192,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"41568c6b-d0cc-4f3f-b19c-f57dcfc463fd","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":195,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"9b5324bb-55d9-46aa-8d04-d76aa7731bd9","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":195,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"0afdadae-acca-4378-a9c6-53d7e2d033ad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":195,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"7822b289-70dc-4910-be1c-0849ff1e5bfe","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":195,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"35e7d81b-3b65-4633-99c6-5cbe35f28d17","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT STRATEGIES","page_number":195,"box":{"x":74,"y":378,"width":339,"height":11}},{"id":"e9f19937-e458-4666-808d-f031744c0bc2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16","page_number":195,"box":{"x":422,"y":378,"width":482,"height":9}},{"id":"04bf1e7a-f5d5-4f16-a2dc-d037c1a2a308","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"066f2a07-bb81-499e-a093-7cd14dbc8c34","block_type":"box","text":"Global Engagement and Voting Guidelines | 2","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"039d8a3d-b306-4c48-8fdf-34b2a4317557","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11f34ae4-e407-4380-8a16-84efc4e54685","block_type":"box","text":"OVERVIEW","page_number":196,"box":{"x":450,"y":45,"width":79,"height":9}},{"id":"a29dfd42-84eb-4bf6-9903-c4130c3b443a","block_type":"box","text":"This document provides high level guidance on how BlackRock Active Investment Stewardship (BAIS) views","page_number":196,"box":{"x":101,"y":67,"width":760,"height":12}},{"id":"f1404497-1008-4707-9000-686369c3f56e","block_type":"box","text":"corporate governance matters that are commonly put to a shareholder vote, or on which investors engage with","page_number":196,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"4ca5250e-441c-441c-a8b0-1409adf53efb","block_type":"box","text":"issuers.","page_number":196,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"3dc5606f-4eba-44a5-a5b4-262c084cf0a7","block_type":"box","text":"1","page_number":196,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"385596d7-4a15-41d7-ac90-946aa6f593ad","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":196,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"77c3752a-80fa-41ca-8df4-4b5ad26fcfbc","block_type":"box","text":"2","page_number":196,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"a42d2b72-5aca-44e0-8f9d-e95b4eb08a91","block_type":"box","text":", providing exper tise","page_number":196,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"359c60f4-5645-4278-aba2-ce77e42e48ad","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":196,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"51f4a2d2-014a-4938-b93c-2bb6e51e93ab","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":196,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"e8a65025-0dff-4ec8-9255-141f8376b69e","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":196,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"7af30b58-4849-4821-836f-40c3f77fa6ae","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":196,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"3bed91a0-65c1-4599-b41b-e71b85cc8adf","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":196,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"fa8fbed8-1d7d-469a-a42b-ee90ca9bd74d","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":196,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"4c7dff4f-49ae-4774-be17-00fd3846acf1","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":196,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"28cc6476-ba51-4f7b-8b77-2ffeeda0f530","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":196,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"30fdeef7-3178-4fc7-a454-ca9bd6fb9c45","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":196,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"63fadd5c-f2c4-4bd0-a99f-4b8582cc24c9","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":196,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"75801375-af91-4549-85f3-d025b1b774c4","block_type":"box","text":"1","page_number":196,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"6222ca51-2e99-4298-a90f-5551242de4ad","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":196,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"c39f2120-7376-412b-9d4c-57277bd77b3c","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":196,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"b7a9bcf9-6922-44fe-8c6a-69dbe3e675fd","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":196,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"d4408efb-2390-4358-99b7-c0534275d5c4","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":196,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"5161781d-9175-4a2d-bef4-258b4774c5ae","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":196,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"02ba3a48-1da1-407c-856c-fcab546f8c28","block_type":"box","text":"2","page_number":196,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"cd03e62d-6e89-4a69-915c-919786d86ae2","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":196,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"d367493f-25c9-4223-afd9-b6efac36883b","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":196,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"a77b648e-c578-4a22-bf48-02f6f0eaf7fd","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":196,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"77723375-7441-4706-b555-5fcfbef8314a","block_type":"box","text":"policies.","page_number":196,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"b08d2798-a144-482e-8899-2508ec171db0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9cfa172d-2445-4952-8c6e-3154c8befac7","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"83012f30-04f4-4a79-9f84-4f92c4502c26","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3a3e2c7e-8020-437f-aff4-874b73b65cc8","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":197,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"f0e9be59-bcef-40e7-bc59-c4f75afa2a8c","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":197,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"a5388297-3186-486a-8f3f-a8432e67d317","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":197,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"c2707969-5d03-431b-babe-b6ec1b99d91d","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":197,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"4c7dc53a-9969-4d2b-a2df-0375d0e71d77","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":197,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"1974fcce-5acf-44d4-a2fc-9b7a8bf0578d","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":197,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"0e345112-d857-4df1-8ced-8df6a59568a3","block_type":"box","text":"this work with research, data and analytics.","page_number":197,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"8beb4191-e305-44aa-bf7d-ada6fc5c24e3","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":197,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"2b62ed57-0c42-4a01-a5bf-5c29542aa056","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":197,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"e0876581-be11-4752-a321-617ee01e9431","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":197,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"f2b0e308-c9e7-454e-ad9f-7293630e6889","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":197,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"5988cf45-5f35-48fc-8bfd-0e8e0e187a86","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":197,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"009502eb-bdbb-4adf-a2e7-8e665d42dd21","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":197,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"5d43a0f9-082e-4366-8d75-fba0ee6d1e78","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":197,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"f2e50d67-52cc-4435-83a1-71821bb32b63","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":197,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"2abb3053-0d97-495e-be79-9849960db34e","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":197,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"4ec3a748-cae3-4c0f-969a-08ce2fc089de","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":197,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"863ca79e-5506-4451-a27d-453795a5a43b","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":197,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"629b1d99-285e-44b1-a4b4-162084121e1c","block_type":"box","text":"shareholder meetings.","page_number":197,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"97abcbe1-06fc-41a0-a959-2b19b88b8b0a","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":197,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"f546ff28-0dbd-406e-9e66-0c0b209c5e3f","block_type":"box","text":"investing.","page_number":197,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"c398239a-8010-433d-ada8-7609dab0d3ee","block_type":"box","text":"3","page_number":197,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"7c21897c-082e-4d79-90da-259295d7be15","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":197,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"a60162b2-6ef3-4ab2-ae18-bf64aca0540b","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":197,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"8526e5c0-63bc-4ea0-8c67-87b8a374a000","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":197,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"e98efdc0-1b7f-4d4f-9d8a-cd2c8f23f6fb","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":197,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"e972465b-aa8c-4ffa-b976-5388e2119a4b","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":197,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"5b8aaa61-9cb7-4442-afa0-b1cd05637c5f","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":197,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"f9f02b5b-c27c-4482-98b0-955a464f7703","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":197,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"0d4e6ece-50d7-4a59-b729-85ec2a45f431","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":197,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"2d90dedd-9ffa-48a0-adc8-6bb0b6856d22","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":197,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"7413b938-7c9b-4cf2-b6f0-58d121515b7e","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":197,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"744cf5a4-77f9-4f9f-86be-7890d34b8362","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":197,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"e0f5b22d-e3b2-4c4e-88be-5fc5e1650835","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":197,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"714ccc4d-2d7e-4b10-8e3d-3de0e21c65ea","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":197,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"792ceb2a-3255-4129-930a-a6c80ed9db62","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":197,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"c648ec4c-7f50-4884-adb6-0073cc771db7","block_type":"box","text":"management teams and board directors","page_number":197,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"ec4ef407-eaab-445b-af2e-37a4392dcffa","block_type":"box","text":"4","page_number":197,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"cb11294a-02c6-4199-b61f-512516625fc0","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":197,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"4519b91e-8d86-45ef-8f5d-514926281e90","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":197,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"d972f170-d9b9-4ca1-ab3a-ab17579e44c7","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":197,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"51cea2df-92c8-4869-a0e5-fc26f60d2c2f","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":197,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"e6d46446-a47d-4ddc-a46c-335a8f85eb77","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":197,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"79e8611d-78cb-4162-8438-c6deb4cee323","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":197,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"a55b2103-210e-4a76-a5e0-795f9c77af17","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":197,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"9bef29bb-c058-4c3e-b5f4-34b5830ab3d7","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":197,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"4d6c51fb-3e38-452f-ba0f-f1db27ded5ca","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":197,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"a4aaf3c1-e509-4483-8fca-e61bcd923dd0","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":197,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"8223388e-7bca-4adb-84bf-bed148315c42","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":197,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"7c419032-4279-4a69-805a-8311ffc629fe","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":197,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"39a7e30e-2c65-4b20-b80d-81ba409dc99b","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":197,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"aee8878a-80a1-4b79-81ca-1f5c0e72795b","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":197,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"2e826bc0-55b7-44c9-ba91-5b626004d38e","block_type":"box","text":"3","page_number":197,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"b470f5b1-4229-4c5d-b901-387ab486209a","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":197,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"38fc45b3-906b-4f43-967b-7ec172f3d0ef","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":197,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"75e5f1be-ca3b-4fc2-9e6b-2e504cd71a9b","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":197,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"38970299-9b53-463b-aaab-04548ec54ad1","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":197,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"50517543-e206-407b-88d8-0fe593d8e39c","block_type":"box","text":"4","page_number":197,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"ba61d0dd-f579-43a2-ad15-919f6378a289","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":197,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"56b1b7e5-33fb-4464-bc5d-1518d10959f9","block_type":"box","text":"boards and their members, where relevant.","page_number":197,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"a57e63ea-4565-4c84-91e1-aabedb282d12","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8c9356f7-4945-4298-985d-c896192edc19","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f8bc710e-b2d2-49b7-8614-9774fb853e2d","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cba5bd79-702b-4088-baa8-5e6b5935adad","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":198,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"57d17265-947b-41ae-93b4-154f8f4380af","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":198,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"a3dfa047-02a6-488b-b89c-613f4d4d3256","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":198,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"9fcf3713-afc3-4043-8dd2-b6b9a766372a","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":198,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"0d551d58-e550-47d8-b63e-499fe1774c76","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":198,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"446eaecc-2c3a-482e-a76d-91f87b8af535","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":198,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"c39b133a-0efa-468f-88c6-58899bc2703d","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":198,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"72dcae4d-e8b3-4b33-8f37-dc249ae84c36","block_type":"box","text":"5","page_number":198,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"d266552e-913b-41d0-a3eb-3e0e46b57561","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":198,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"97a702b4-cc6c-416e-a549-f709b83d0f0e","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":198,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"75276f35-fca3-4a5e-8666-51856021cc5c","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":198,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"8bd2272c-6ced-4663-b99b-91955cef05e5","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":198,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"1aa4e57d-d384-4125-8221-cd2b4bb70d67","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":198,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"a1c3445a-c061-4b9e-bbd4-67388056ce67","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":198,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"0d9ac22e-c918-4e62-a17c-96c356de8842","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":198,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"8141d9e5-28ff-46a9-a052-41e15970c3a2","block_type":"box","text":"5","page_number":198,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"bd57bafb-da47-4f0e-9735-847b7756a01a","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":198,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"14e233ff-b999-4a72-9814-bc5a0698595f","block_type":"box","text":"multi-asset solutions strategies, as well as holdings in BlackRock’s index and active fixed income strategies, to the","page_number":198,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"18bf09d5-8b09-4c5d-b37c-841e1bdb06af","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":198,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"c5de4803-3ad7-4cf0-bf58-efcee51b0d3a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"efd6e7d8-158d-4e3e-b343-84c9540b95cf","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f1ee14ed-9922-497a-8d1d-5301f6f5ac2a","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ae8f857-69d9-4665-8d5f-b569d2dbc947","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":199,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"0012dc40-874e-433a-80a8-87853966ece3","block_type":"box","text":"Roles and responsibilities","page_number":199,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"7bebdc57-7e25-4f2e-a0ed-d143435aff8b","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":199,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"a20b67c7-893e-403f-944a-a2ada0514403","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":199,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"a4801251-e4cf-4f98-93e8-3dc39a51dd59","block_type":"box","text":"6","page_number":199,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"5889923c-1f89-4c06-9aed-7df03168f283","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":199,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"08d7177a-bdbd-471d-aa2a-609b8c2c918c","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":199,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"9e360804-33eb-48d0-b88e-74747156cdc4","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":199,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"85d3f4ff-06e6-4e4d-af59-5ba757d42be6","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":199,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"5dc79ca3-4f90-4ec3-87ce-dfefea16a493","block_type":"box","text":"per formance over time.","page_number":199,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"6c0e1261-e13a-48d2-bbaf-5f67409153f1","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":199,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"b0d4e8bf-c38b-4b16-8ef2-7158550f51fa","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":199,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"a0557ca2-afe6-4c79-af14-bcc914670a36","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":199,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"bba6f632-9520-435d-9453-46b630e39696","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":199,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"0b28a824-c17c-44c9-8cde-e8b4f56a673a","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":199,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"0c841da4-6ffa-4937-a948-b1590d56584c","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":199,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"a1af574b-b7e9-41e5-b44f-ec87159d65bc","block_type":"box","text":"Composition and effectiveness","page_number":199,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"6394257f-02f6-4ebe-80b2-516d433c9ecf","block_type":"box","text":"Appointment process","page_number":199,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"6592ee78-007a-405a-a4b7-971da58c0fe8","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":199,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"69567cad-e7c1-46d1-8387-9f7989f1915e","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":199,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"afa2731d-b497-4e04-a05f-978a50a30ead","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":199,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"cfde75b2-efd6-48ac-8a85-64266dad0a19","block_type":"box","text":"e.g.","page_number":199,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"0bd64215-ffc6-4eb3-9be9-44c5612f7fc5","block_type":"box","text":", sector, maturity, geographic","page_number":199,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"918b3521-7df6-4e48-859b-b1b7376479fb","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":199,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"6bacc903-e7c6-445b-b2d5-263aeb8e95d4","block_type":"box","text":"e.g.","page_number":199,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"b14a01b6-1f81-4e3d-ac82-9a26784dc14d","block_type":"box","text":", financial exper tise, industry track record). To","page_number":199,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"3e163adb-dbfa-4cf1-a083-77de9568a414","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":199,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"ea66e50b-02dd-4fd9-a432-eaa838c807a7","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":199,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"4cf51c09-7290-43aa-b004-cb7bebf4723a","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":199,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"844cd029-3ac0-4628-b50b-2f7d1d97cf54","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":199,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"415d8e85-4b92-47d7-8324-2db61c02bb3f","block_type":"box","text":"and local market requirements.","page_number":199,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"ff4ee19e-5d93-478f-97e7-898a8dbf0cbb","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":199,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"93d7ed30-6def-4f76-8add-5c26b8248341","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":199,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"3dcf0110-5124-47c8-b503-272884426e98","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":199,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"413b4dec-d8df-48ba-9b3a-8e8fd3cbdbbe","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":199,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"87bac64e-c4fb-4872-b696-833b092ebbb6","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":199,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"3fdda194-a8cf-4a5b-9e59-0fe8df99fc80","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":199,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"3266bb1f-ff00-4520-b738-4c2e5ae91b00","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":199,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"a8ac7321-223f-429e-991a-0a4858826808","block_type":"box","text":"Independence","page_number":199,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"7c844853-983d-448d-9467-2385297523ed","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":199,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"96f1f8c3-56a5-4235-9f5f-4e971fa144fe","block_type":"box","text":"e.g.","page_number":199,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"f090c91e-1f00-4185-805f-5046372ec292","block_type":"box","text":", government or","page_number":199,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"a23d1e41-c2e0-4772-a449-72705e24ea76","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":199,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"6867c646-7b80-4927-80b8-1092db593cea","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":199,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"d5c4ad2f-5433-452e-9073-af7e7c2a473b","block_type":"box","text":"conflicts of interest or undue influence.","page_number":199,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"60de9d00-c970-4552-ae08-0ce7cdb3918c","block_type":"box","text":"7","page_number":199,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"7a05acc9-426f-4309-9d1d-5999e82dace1","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":199,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"fcb820f5-01ca-4f69-afce-10294b03b256","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":199,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"3c9b11d7-5835-4746-b8a0-4fa3fefc0803","block_type":"box","text":"independence should meet those local requirements.","page_number":199,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"7b6b7104-8dee-46eb-b8ed-b455cbf69cf3","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":199,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"51cda5d8-aa62-4cee-a104-775a1ec766de","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":199,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"15334c2d-1417-4837-9b1f-80ef2852f4f6","block_type":"box","text":"composition if this is a perennial issue.","page_number":199,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"3d55b325-4e15-46aa-be7f-de0d50b66eeb","block_type":"box","text":"6","page_number":199,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"db1e3322-19be-4cae-926c-7dafc4df9f87","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":199,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"51c599d4-5285-4a83-a5b2-62315adc66cd","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":199,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"d13027f1-6910-474c-8fa9-40a0187a158f","block_type":"box","text":"7","page_number":199,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"8fbcdb5a-40fa-4387-beab-cc143fc5f40c","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":199,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"c35c57cc-f350-4ae0-8497-2b12909ecaea","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":199,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"18d32b68-f269-4b0e-b580-37b28c693fbe","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":199,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"f76ecfb2-9abf-47d5-856a-d91cc9896be8","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":199,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"1f02d8d7-3e3a-41db-a89b-b60443984f97","block_type":"box","text":"of the company and shareholders.","page_number":199,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"4598c459-be75-4362-ab43-06dede71499b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"366d872d-85c8-411f-b49e-02282fff47cf","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"5dac3d72-8800-40d6-ab98-9fe906983ae8","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a0434ae6-0055-41ac-ad08-ab9c9006f6dc","block_type":"box","text":"Independent board leadership","page_number":200,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"74b017a6-a9ef-4c27-bf1a-7918c88fd934","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":200,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"5cbc3f1e-a8c6-4587-8c06-899dcec51556","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":200,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"5071db1c-c056-4d12-94c9-d1533bd6dc98","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":200,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"565e741d-7ac7-461a-b565-1f041c8a43f8","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":200,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"f0e2ddf0-d128-475a-b183-62943275fac0","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":200,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"5e109454-a2c6-453a-8991-c7be64ef1e5e","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":200,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"cd7cb980-436f-49f4-a48c-6ec204f19188","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":200,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"36202a87-f4af-4256-8d99-b17abafd7266","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":200,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"ef4067dc-41dc-4475-834c-923e2f8eb02b","block_type":"box","text":"how it serves the interests of shareholders.","page_number":200,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"52da53dd-78ca-427e-8bae-bfd90e017ea9","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":200,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"9bff7484-a50c-47d0-86b1-1983b8eb6cd8","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":200,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"fe84db80-2f92-4a55-a56c-ed8b076a6065","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":200,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"988aad35-191c-4302-803e-be21a8204a45","block_type":"box","text":"Tenure and succession","page_number":200,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"914d0bac-55ec-4c9f-b4b1-8baed9c09228","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":200,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"a12a772d-e330-4cde-a5e5-c17d2ebce685","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":200,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"7605cbce-bede-406f-ac1f-c72c7359f594","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":200,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"eeead4c6-2441-4bc8-ad8e-e7efebace9d6","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":200,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"ae79d0cd-587c-470a-a4c8-98bc9fc8a968","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":200,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"e2e8a0bf-9896-485b-ac9c-20c6d717324f","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":200,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"778317ab-78ab-4828-8178-aa126505cb08","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":200,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"70c2eb82-a060-4b0e-835d-e68738ff6806","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":200,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"81319e5b-4782-4a74-a195-5922b6250337","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":200,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"b8bb374b-9314-4716-8244-4285810a3c25","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":200,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"a729e06d-976f-4c6d-8d39-5589f8f569c6","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":200,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"526e543c-5e96-4d22-9d8a-6b4e9421c650","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":200,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"6606ac8d-e942-45ab-8160-f51cd1abb758","block_type":"box","text":"for their continued service is not evident.","page_number":200,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"de8b4329-517f-4609-86df-2056e42d3373","block_type":"box","text":"Capacity","page_number":200,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"4e5de7f5-8d2a-4da1-92fe-02d5dda5a5cf","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":200,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"2bb60453-3f37-4224-a529-bb83375d6ea2","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":200,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"7298d450-cc63-40c7-a1eb-020c28644961","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":200,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"669d735b-7fae-4105-b033-afa48233b48f","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":200,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"05179e1f-979c-4f3b-9cbd-d55d3cf1c44b","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":200,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"38c67ba9-d088-4c8e-a708-c78737b8267b","block_type":"box","text":"determinations across markets.","page_number":200,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"aa190210-7014-427b-b812-191f08f22d90","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":200,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"a43cd13d-e282-4e75-b08a-01ccc87e5546","block_type":"box","text":"their duties to the board and company.","page_number":200,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"254ef77f-a895-4ddf-9314-9a32d7e49a21","block_type":"box","text":"Director elections","page_number":200,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"904acf2a-9ba1-4ec5-b335-98fd2085b912","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":200,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"0a5e4a64-cf82-4c5e-8d46-51899a87c8a4","block_type":"box","text":"structure","page_number":200,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"3d348aaa-30b5-4966-8c90-74829a179bf5","block_type":"box","text":"8","page_number":200,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"96004fe4-82b6-4c0f-bba3-ee7836ea09dd","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":200,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"aa37a109-c023-433c-a7af-56a10940a798","block_type":"box","text":"basis of its business model (","page_number":200,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"7b9cb29c-47af-491b-93c3-851093885380","block_type":"box","text":"e.g.","page_number":200,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"1c00a6e7-3d73-4e5f-95bc-1d8acbebc560","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":200,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"d2b5e262-dfc1-4b89-987e-8904a15dd14a","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":200,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"e6582f4b-6207-4aae-b24d-d463da0d36c5","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":200,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"7e1c7673-24d9-439b-8a36-461ad330f8de","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":200,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"47d8f878-3d40-456b-8190-f341d2a93d2d","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":200,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"bc5db976-d85e-4dfd-b618-ecff31028dbb","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":200,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"78f64902-8830-48cf-b15c-70bcc192a70a","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":200,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"2aa53f51-1a7c-4bdd-85b2-fe0f1b3eb53e","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":200,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"46d962c4-c5ce-4edf-9846-0fea2cca7d93","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":200,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"2170f9c3-a320-4654-9dc1-aa894be99a15","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":200,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"efd61368-a640-481d-b720-4b9e7076f6db","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":200,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"2985fb14-0fe1-4066-b960-b2cb145381e7","block_type":"box","text":"8","page_number":200,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"a945a762-cd5c-4976-9273-0b53b3df5c53","block_type":"box","text":"A classified board divides the directors into classes with different overlapping terms. As a result, only one class of","page_number":200,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"5e126b7a-84cf-4550-9276-ba39c1d949c9","block_type":"box","text":"directors stands for election in any one year.","page_number":200,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"ba83b381-9f67-49b1-861c-d8cfecfc7efd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5721c0a6-3fdc-42b7-a41a-7a863bcb8421","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"1ae294ba-b104-4fec-8103-7dffe4399cd3","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"226ab236-b8c6-4288-99d2-6c8f00de0c33","block_type":"box","text":"Committees","page_number":201,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"5e7375a1-4534-4b77-911c-e9e113d5ff09","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":201,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"4b712f6d-bc5d-4c32-a320-94476e4d2ed7","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":201,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"0932113d-b444-4765-8ae4-a68809689a06","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":201,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"cbb666f0-6d63-4a1c-921b-493eb3ad0cb6","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":201,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"41815dc9-f2b0-4c69-9d3b-8a179717fed1","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":201,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"b548dd68-1083-4400-90d3-6fb26ad4f830","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":201,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"513adc50-0c18-442c-8cb1-9bc32e5581df","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":201,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"3737b415-ae7f-4708-8ba8-b86e2b56ea60","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":201,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"098b894c-b4e1-4e2f-a789-4eaf9e926804","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"672f74a2-1389-4431-a5fd-bbde9b08bb16","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":201,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"633e30a9-aaad-4702-a508-1fb6a49ae710","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":201,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"db73adb8-8c20-4188-954f-db4d6f0f4596","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":201,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"a3789adc-e7cb-4d73-89b2-dedb54300946","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"a84e73d3-bb4a-4dab-9fea-fada215c4460","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":201,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"dd9110a2-ace8-4349-a305-bdf94e595d09","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":201,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"005617d6-11c3-4733-a35a-7cc30b328035","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":201,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"40c380e4-e538-4409-97ff-7b152ccdf4e2","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":201,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"f70672c0-0885-4027-ae61-b25a0d08dc8b","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"73db640a-7795-4574-ad4f-0561b48d79ec","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":201,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"2ebd3999-2893-462e-b2d3-57981d5cbcdf","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":201,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"46a5fca9-b657-4ad4-b038-746fc86a08a0","block_type":"box","text":"firm-wide compensation policies.","page_number":201,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"9ccc5a6d-815e-4a7a-afa0-e9dcd7450e41","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":201,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"649b1e48-c845-469e-a10b-ab1e8f221b38","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":201,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"e01f2306-35fc-45a8-a179-83ba63e1984e","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":201,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"f7de2de6-c9b1-4756-9837-97238ac0b86e","block_type":"box","text":"Board and director evaluation","page_number":201,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"473a2bb0-c61c-4a40-b7f3-3700104566f7","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":201,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"fa27d917-7a6a-4fcc-af92-09aa1beca0d3","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":201,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"222379cd-eca3-4558-98de-66a3a27fc4f0","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":201,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"7baca85f-ea5b-4efd-84a3-aefea1ee8957","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":201,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"61ab4d5a-ac79-4cd2-9332-731cecdf0277","block_type":"box","text":"a result.","page_number":201,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"00385b3e-b7d8-430c-ac03-b40a0eca1a68","block_type":"box","text":"Access to independent advice","page_number":201,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"0217640e-c8b6-4d12-b974-9c96e2d1544e","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":201,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"62da86e2-71a6-4104-9353-cc0167a98714","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":201,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"c3c504e6-39e2-4897-a9b9-8e7ecd0200fc","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":201,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"13f951c6-bfa3-4f8d-b125-6c717b9754c1","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":201,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"867f3b23-8d06-4503-828a-d79f23995d99","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":201,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"2681fe11-4e39-41dc-b626-67ad564e0bca","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":201,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"06a400a0-fc5e-403b-b201-8d533e951c38","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":201,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"467d7e8e-f070-4c33-9a63-80c4168afb81","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":201,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"14536556-5ee5-4c35-8154-7734b3165f1f","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":201,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"d455bf04-8fa5-496d-95ba-b4db8530f6de","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":201,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"bfd67c9a-ac11-4969-8869-c34388a57b83","block_type":"box","text":"per formance.","page_number":201,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"4bcace0e-3416-439c-a015-dfc5977f3cdf","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":201,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"2b24f5e1-6b19-4a02-a304-5cf4ba80beea","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":201,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"06622607-6fc7-4fe6-b608-65f77a5b0699","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":201,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"726ec622-8e25-45ed-a611-3e84cc0f3d4f","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":201,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"d5259bb9-3594-42de-a1d7-89f2d870de69","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":201,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"e9291a9d-bac1-416b-8b39-ef9e39100c0a","block_type":"box","text":"recruit and motivate.","page_number":201,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"cfcc3836-14f5-44e7-8eee-cea02f92a5e4","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":201,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"9c34e617-6bb3-423e-85d1-e9e23b2a803b","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":201,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"49901486-2ba6-4cab-b06f-476790713b61","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":201,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"2dd76a92-ae85-4611-9bd1-3157713152d1","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":201,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"7a4dc841-75a8-4fd0-9419-fd18c6f9aae3","block_type":"box","text":"arrangements include:","page_number":201,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"3a245238-d4fe-4620-a9ac-abea4dce2594","block_type":"box","text":"•","page_number":201,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"5c6ac32f-c579-4659-a723-64cbdf1a8e75","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":201,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"00512b87-b479-4399-b793-28289469ec42","block_type":"box","text":"the company’s size, sector and market.","page_number":201,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"eb830908-cef4-46a7-a707-4b1fca840a69","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"6eeb8589-e7c9-4a5e-8b77-bef566998f71","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6d358975-e9d3-4aa1-b43e-9f705bb419f1","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a2a3f5c-a9cf-46a8-82fd-1907cbf587c7","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"2a6546b0-13ca-473e-9acb-4cac3efd00f9","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":202,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"0c7c55ef-32cc-416c-b993-f91de77acd73","block_type":"box","text":"strategic objectives.","page_number":202,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"c5cd41b7-60ff-46c2-adc5-89fe9472351f","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"add3e0a7-93f6-4e96-9d73-f2e411dd2807","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":202,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"b92d0e99-2335-4019-af5f-3095805fbda5","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"e34a006a-1670-44f6-b076-3884fe7fcf78","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":202,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"d8f67560-2e97-41e0-a8dc-dfa53feb5bf7","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":202,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"a594f56e-3de3-4026-8081-43cba7dd5b1b","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"5e128df1-a815-496c-99a0-21a316c43566","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":202,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"837b18f1-71e3-4d18-b18d-a33a7715b2aa","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"fcad1b54-410c-4b9d-b057-7df6eb68c94e","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":202,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"6d871d2b-a0c0-4fe3-8fb6-2d76ad90b6e9","block_type":"box","text":"transparently.","page_number":202,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"ded5fbb0-724c-4c11-a93d-4de991adc1b4","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"83876746-3852-47e0-8639-77dab88b6add","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":202,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"3377e236-b9be-4cd0-a040-6939ee05ceac","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":202,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"89bbc35c-4625-4124-867a-277da42555c6","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"574dbf71-ae62-413c-8a9d-879bb8c56b45","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":202,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"f47768f2-dd54-4690-a5d3-da1223371a49","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"61db4ac1-83e1-4158-ba28-10eefc875c0e","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":202,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"4597e3b2-821e-4f7b-ba28-f0bc606bd5be","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":202,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"d737f0e0-163f-468c-bb80-8ce61b9f917e","block_type":"box","text":"misconduct.","page_number":202,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"627db655-bebd-4daa-bbe3-fe2c43ae0a28","block_type":"box","text":"•","page_number":202,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"a50d3196-0bee-4fbe-9d28-548da45c4ec4","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":202,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"dbf625cd-e6bb-4fff-b223-8ee7b969669f","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":202,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"2df4e37c-5fbd-46bf-a3c0-3f45b4a34c46","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":202,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"d8b08aef-65f5-4c7c-a1f6-b6e487fa3470","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":202,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"dad976c5-e596-4e34-90df-ef3133b72241","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":202,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"447070fa-0620-46c5-b396-972210ddf451","block_type":"box","text":"committee, or the most senior independent director.","page_number":202,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"102482f2-dbca-4d96-9d79-a67816eb7403","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":202,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"519fddce-fca8-4b90-ad7f-623abf0ed132","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":202,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"28829efe-a806-4d35-80eb-22abbea217f1","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":202,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"37d68a75-6aa2-4828-866d-99426fcdff01","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":202,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"6ad2e56b-edef-4134-a3e9-ac4b5b1d6c43","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":202,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"2e82679a-216b-4405-b973-ea7469c2d2a6","block_type":"box","text":"CAPITAL STRUCTURE","page_number":202,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"a7f5a40f-98e3-45d8-aedc-bd1be16724cc","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":202,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"2898390a-99c5-4fc9-b177-8ae6a6baaab2","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":202,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"14bb94ca-ab81-4fbe-9ad5-e1dbacf4a1a2","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":202,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"2e25e67a-4c09-42f9-80ae-ed0f013337a2","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":202,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"b7b55e7e-71e7-474d-9f4b-4a95ca709787","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":202,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"28d69426-6b6b-4d20-8775-b453326ade83","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":202,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"530386fc-e488-4cff-a675-b01e9da46b0e","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":202,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"0497a78a-d223-49a2-89ee-36fddb8478cd","block_type":"box","text":"Share issuance","page_number":202,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"8e42f728-bdc9-440f-924e-d45f72002b5b","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":202,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"2e627e21-7d52-45a2-ad75-0f554c135b28","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":202,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"9e4f3889-bfc8-4b37-8cdb-59f9dd025233","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":202,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"2209f0f7-3c86-42c0-9fdc-6b8dad28459d","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":202,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"2d77c40c-9d10-4187-abf4-e7b46a238755","block_type":"box","text":"market environment.","page_number":202,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"658bd90c-d072-4ddb-b731-aa6bbd233309","block_type":"box","text":"Share buybacks","page_number":202,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"0e314e90-6fcc-4ac0-bf08-26c651af58e4","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":202,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"833cb604-efcf-4ac2-97d6-193e37933d2a","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":202,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"f585bae7-582b-459a-acf4-fed21ceb36a2","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":202,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"a64ad0ab-01a9-4ae8-9319-08590f2a4995","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":202,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"343c8c83-dd42-4a5f-94ed-8b9a84b321a1","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":202,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"811c22b1-52ca-4141-8fb9-539474fee918","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":202,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"f93b74a8-6204-4035-b9c9-faed7bc9df48","block_type":"box","text":"of the company and the market environment.","page_number":202,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"4fde5dc2-9c02-4671-8755-0cd8d2822cc7","block_type":"box","text":"Dividends","page_number":202,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"a7f84c92-ba84-4efa-8756-4bee748837dc","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":202,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"6cf5777b-20a3-4567-939d-f20f7b0bd8fb","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":202,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"3792a498-8727-4646-8e54-3df8bfa41728","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fcc3f09a-71fd-4496-a724-33963f61d4cd","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"082db924-ece2-4fcf-8c94-9005c323b90c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"baa45fb5-8223-4c72-9c16-0fd892dc6b42","block_type":"box","text":"Differentiated voting rights","page_number":203,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"c13390fd-a230-45df-8d30-e26a195f8a37","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":203,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"e3d4ad31-e953-430a-8989-30fbfb659010","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":203,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"708eb621-8bd5-4673-b393-e605f62398b2","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":203,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"dcb2b102-f70e-44b8-8c82-e3d58b998b89","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":203,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"3913d809-bca7-4082-bb10-9d07a36d544e","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":203,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"92bcfae3-2932-48cc-9327-1639a6bc7c37","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":203,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"f63b73b7-ec97-41bf-be77-ba75be86b0a9","block_type":"box","text":"analyses of proposals.","page_number":203,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"64cb1830-d4cd-44a4-8344-bc98991f48e9","block_type":"box","text":"Mergers and acquisitions","page_number":203,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"1c941795-5129-4a7f-853e-49cb556f23d7","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":203,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"39345db5-9efc-4d1f-b587-be934cfafd01","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":203,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"bff62592-f9f5-4f65-91c1-2717b9ee2034","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":203,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"55650878-9074-4b91-8216-a5a0e15e9abe","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":203,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"041b4afc-dd0f-40ce-a978-9eb7ee931d08","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":203,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"a5327804-34ab-4ac4-b0f8-2483da017e64","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":203,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"18868420-aa95-43d8-8595-e94c9ba914ec","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":203,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"ddcfee6e-99c8-4ead-b0c7-74f5048d341b","block_type":"box","text":"Anti-takeover defenses","page_number":203,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"70a93b16-4dc1-47c1-9c80-7fd17f7ec0c9","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":203,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"a6d7ab51-90af-4a20-91b8-335174f17395","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":203,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"c86a216f-9e83-4a1f-9e77-351c80879ba5","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":203,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"bf9c16af-cf7a-4a18-b7e0-d6cb7c8afd02","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":203,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"2e8d2c0c-9436-47a2-b495-a780d1e37b52","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":203,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"841ae532-cf7d-4349-ae3f-b611c8091c2f","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":203,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"79df6053-634e-471e-9f8a-3fe57bf396de","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":203,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"26a8aacc-01b7-408e-9387-2721922a94fb","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":203,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"8eb8c6bf-ab23-48dc-b11c-faf8f5225327","block_type":"box","text":"Shareholder activism","page_number":203,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"d81e5ed1-787f-44bb-9ac3-fcd485e12d29","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":203,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"400a7184-5343-4884-8f8b-058f3e425e59","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":203,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"174ffc3f-a256-4f83-9521-fca25b643558","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":203,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"12ec2bf8-1d8e-44a2-9cab-88912ed34485","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":203,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"2b790772-a334-4fe2-aaa5-94029dc803fc","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":203,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"56b88bd8-b70d-4bfe-9350-b71afa6c981b","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":203,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"a75ea8e7-64e8-4e7d-bdb7-48dc6540f940","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":203,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"4f2ef150-adf4-484d-a79c-3d9bdbf5c34c","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":203,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"6c2cc176-36d9-4cb6-8526-649bf1e278c6","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":203,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"e38abf40-c2de-4e47-ae81-6d5dd64d6859","block_type":"box","text":"protecting shareholders’ interests.","page_number":203,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"bffe6a2a-a276-4012-aeee-8e3e6fb00723","block_type":"box","text":"Significant shareholders and related party transactions","page_number":203,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"1cea3bc0-01a2-47ca-8fc3-6698750fb129","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":203,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"6883e676-45cd-46b8-b4e0-fee06de87a40","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":203,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"d40acc56-287b-4e9f-830d-498516e0ab44","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":203,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"8fe83cf1-e0b8-4740-84b8-32076b93a3e6","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":203,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"91193780-e816-46f0-9dda-ce3da395131b","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":203,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"4d943c7f-76e7-4c4f-8323-8b97eaf7cd2c","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":203,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"34d27243-047e-4f41-a667-451d0c92f7f1","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":203,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"25b3c68f-2acf-4978-840c-fd613d137507","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":203,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"9b9cdafb-02f6-4cfd-aa41-344dde07fe10","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":203,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"0856f7a3-238a-43d5-a626-c7f72eb1188d","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":203,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"8b0ddf90-8ab5-40b6-8ad5-57422db857f8","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":203,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"7ea07a59-caf3-42f4-865a-eb06b28e7271","block_type":"box","text":"audit.","page_number":203,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"8d563ac3-2998-4758-a170-97bbf21aa257","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":203,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"5bf8e56e-878d-42f3-8924-1eeaf9e909fd","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":203,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"130d5dfa-24e3-410f-8a7b-6cb4089367e4","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":203,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"e4cc9de4-ba01-46c4-a2e9-756d22a6cb6d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"86f30ed4-3693-4ce9-ba70-02705d8f671b","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"67d3c681-8e66-4d91-9a7d-0f8eb4142579","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73c5e569-e305-4e07-95bd-e06cc7f4cb9b","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":204,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"f18ca7a5-a06b-4b9e-8bf6-6a1426f587af","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":204,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"7cc107ec-0cb2-4955-95bc-260fb4cbffeb","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":204,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"f3aff82b-8970-4bf1-bc0b-df1fd05692ae","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":204,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"5a964dc3-4b8e-401a-a804-af1c3b430320","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":204,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"285909f4-a683-4999-9e1b-344816db3d76","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":204,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"ab9fb1fc-a48e-48b6-81e4-b8b7036f75f9","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":204,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"3075fb3b-f125-4e9b-b77b-848caa5336d4","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":204,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"b55f9109-16ab-45f3-a66c-77e09aa09345","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":204,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"cc553308-c656-4110-8455-6e4736974f01","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":204,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"7ca99d91-f53a-4aec-876a-6cea72712b5f","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":204,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"8131ccf6-059e-4022-aa3a-1a0eab345d86","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":204,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"1468407f-705b-4cec-9a21-d5b865b321da","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":204,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"6015b48b-49ea-4ce0-9339-ef73fa9e9099","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":204,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"c3c008b2-b93b-42d9-8940-4b353e162de8","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":204,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"c12799ae-9991-48b0-b3d1-6cd32f909ca0","block_type":"box","text":"9","page_number":204,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"6010b437-fae9-4be8-b418-19df750a0080","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":204,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"2474e7af-13c0-4f3d-8d58-64a44d634bdc","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":204,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"98444dbe-4616-4d92-8789-1698fa1e2624","block_type":"box","text":"standards specified by policy makers.","page_number":204,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"eddda537-a322-4365-a694-ca2e536ad787","block_type":"box","text":"10","page_number":204,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"06105358-2cc6-436b-acb1-d34419fce9d7","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":204,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"23fdad46-b1f7-4d82-ba15-17cfc998ceb4","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":204,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"bcc9fada-dc54-4c1e-9751-8f02fb7cb82b","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":204,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"739c6449-33f6-4d54-92e6-fe834ba9675e","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":204,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"de9e0474-632f-43c4-9d41-7d6d548ffead","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":204,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"2032d16b-e130-4965-b4d3-11a64c789c82","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":204,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"1ed7ea11-d40e-46a1-a662-458a5f28ade1","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":204,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"3742b730-97d7-4909-a0d7-12f90c94ea21","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":204,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"d5bad570-24fc-4332-9de9-2e841dd512d4","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":204,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"d163b505-948d-4faa-afda-d5675fe14626","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":204,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"549ba8f8-e40c-448e-9573-a85467d98197","block_type":"box","text":"remained independent.","page_number":204,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"a4b9b2bc-0fa3-44ea-9707-dbd1aa58357a","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":204,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"318f6884-7d67-4c20-9ecd-989481e4d9b2","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":204,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"bf39353f-293e-4f24-bd4f-a9fc28699ede","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":204,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"21491d8e-0661-43df-bff7-ec8868235d6b","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":204,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"f67d3499-a3d6-4daa-a6db-4917160fddd1","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":204,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"6a685a38-7730-4979-8f1e-a9060a0bb3b6","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":204,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"26950d2a-4dba-434f-861b-909fd3ecc766","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":204,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"fe68c411-ca80-4aae-b5ee-c2b6b8714d9a","block_type":"box","text":"General shareholder meetings","page_number":204,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"f9794bcd-f82c-49a8-be5b-77121fc74dd5","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":204,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"56226ea2-c0e0-494b-848f-de9f91cd280d","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":204,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"579cfcd6-cc78-4d64-8544-c015acc08ab0","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":204,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"86320d01-b8d4-4be7-90ab-b2506a99ca25","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":204,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"38420c1a-3719-492a-9da6-2801e93c5bf0","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":204,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"d7212eb3-2600-4e04-978f-16311a16460d","block_type":"box","text":"an in-person meeting.","page_number":204,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"0bd64789-8295-485d-aac3-8fb0e1e0093b","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":204,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"e75e19fb-e1d1-4634-bb23-8f005fd5c972","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":204,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"2ca6f66f-a639-4474-891a-5bff5d796f6e","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":204,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"c6d80d7d-2ffe-4c0c-be98-80f99a10f83d","block_type":"box","text":"par ticipation.","page_number":204,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"ae820962-b3fb-4bd1-af21-5363114b9fd7","block_type":"box","text":"9","page_number":204,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"ab610237-1ca7-4cf6-8da3-05daccbb51d1","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":204,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"7b317175-1dd3-4382-a313-98a78a30bb89","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":204,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"ae6e43cf-385e-44cc-bee6-27c98313f61a","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":204,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"dac20370-f67f-4050-b161-558bd4a84f42","block_type":"box","text":"Disclosures.”","page_number":204,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"6b1a8ef2-fc97-47fd-914a-41a202f39b3f","block_type":"box","text":"10","page_number":204,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"f2faf957-67ee-4cc7-8636-2919eb35614f","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":204,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"9366c2e7-6f1c-435e-93f5-c8ebf5d94b37","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":204,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"4afdb022-9f68-4c4a-8bf0-c579c0723f03","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":204,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"171cf662-7bcd-44b8-b1e5-84a106002502","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0f35ddc9-a9fa-4f84-8d51-8eaa5bc96771","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f9f506c1-c40f-43a4-8509-11d8a64a566a","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4eb33ea8-8771-4113-a012-b5c82342f0c2","block_type":"box","text":"Bylaw amendments","page_number":205,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"9483bb60-d8cf-4a73-87bf-ef97c8e30fbb","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":205,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"52eec7f8-0b29-427d-a30c-c473249491ae","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":205,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"94d136ca-80ad-454d-9813-4751965d3d8e","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":205,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"b1fc5ecd-08d3-4245-8c46-688fb252f317","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":205,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"57d0f69d-32fa-4241-93bb-b15603165ee7","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":205,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"48a41a19-b3eb-4334-873d-bc800424b227","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"ebe1c773-514b-4bcc-9b64-43ffe51b99cc","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":205,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"1aa5058e-d12c-44b6-bb30-45bcfed21625","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":205,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"8dc94aaf-33c2-4890-8068-a899fcfa9481","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":205,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"79c65084-be64-4764-b329-d9d9fc1d85bf","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":205,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"567230f3-938b-4ebe-922e-37b81d409679","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":205,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"9b0250b5-f526-4f69-8df1-aaf9e1538bee","block_type":"box","text":"nomination process.","page_number":205,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"84c6e31f-cb09-425b-ad29-08eea3c69ca6","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":205,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"62189407-a2ac-4928-9841-291dcf871e11","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":205,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"2f8ee7b8-4839-4721-aaf1-eac6c07a5007","block_type":"box","text":"Change of domicile","page_number":205,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"bf4f3062-ed48-46b4-8026-5d10f05f6c31","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":205,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"2eba508b-d855-4a01-b4ca-def0411ebce5","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":205,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"63b0adee-1f97-45ec-a15a-e636a7ff2b54","block_type":"box","text":"immaterial.","page_number":205,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"ddaa8266-5354-4e8a-ab79-f9403a83810f","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":205,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"eaeff9fc-7ee1-46bd-985d-01c61d0eba97","block_type":"box","text":"with our clients’ financial interests.","page_number":205,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"c119eaf6-5212-47eb-a61e-04b15dd75015","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":205,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"82c7a7c8-39c0-455e-bd80-ba1373ea7aff","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":205,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"0b8de8a5-84b5-450d-9c1a-028b1e86bbdd","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":205,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"db388cee-cca9-44a0-b3a1-a9757a19084b","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":205,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"836598d8-b5d6-4fdc-b060-c88bd07fc2d4","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":205,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"5e0c6ab6-928b-425b-bedd-dc296781376e","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":205,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"7c7b931d-9e8c-42bb-acda-a790197d5a41","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":205,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"01a6fa34-69c5-41da-8960-799f8b7ecde1","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":205,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"b27cccf3-9620-436d-bd1a-bbc3f975506d","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":205,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"79409ae1-fe97-4a84-b9f1-e6510cb6030b","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":205,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"2659d3ac-c65e-48dc-b73d-0e51e7e3e452","block_type":"box","text":"relevant to a company’s business.","page_number":205,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"70a9cd82-e769-40ab-ab02-06acd5af4ccd","block_type":"box","text":"We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a","page_number":205,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"f10fe595-4fe6-4925-95ad-52db019a2c57","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":205,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"bc3ceeb7-503e-475d-92cd-a7d586463562","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":205,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"5cb2538d-3918-437b-af07-3edcb0d95215","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":205,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"caa03682-de8a-4569-8f6f-0972f643c4cb","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":205,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"d8639814-ba3f-42aa-9192-c48ff4311340","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":205,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"f34897bd-f11f-4750-9b03-6ec427e5d11d","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":205,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"e4da5880-d65c-4e58-97dd-a303747aa8e7","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":205,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"35886e7c-23bf-403b-a222-30b6b1edc2c9","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":205,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"49b6fb47-d609-4356-be56-864cc740e448","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":205,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"d59f4523-743d-4323-af39-26712e587afe","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":205,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"c67c6fd0-019d-4fa0-96e3-927dcd44b665","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":205,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"fdb72c8d-d87d-41ed-8de2-e6ff81452059","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":205,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"4df517cc-56fd-4e3b-8b14-623b98da26fe","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":205,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"8f6d895b-eaff-4a4f-94dd-07c70860c301","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":205,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"75429e8a-68ee-403c-afa7-ee16d370685a","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":205,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"2ca379df-ea5f-42be-8177-3a12a5fc3a83","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":205,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"140e97f8-3700-484d-9323-c69006afc570","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":205,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"b87f9b22-bb3f-44c0-a40e-b2b4be65f00c","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":205,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"d3c71f26-a394-417a-bb15-b8f6b05a4e18","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":205,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"b2fe7ea0-e202-4dce-849c-b76fd0303dba","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ebd33e23-66d6-4cb7-a645-11732aaad6be","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c65397c1-37f1-41b5-bfb8-e710a18207ff","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69f34400-3dca-4504-81a2-ea16fce4aa35","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":206,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"12cd61aa-fc30-44b6-b646-5533d6d55b83","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":206,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"2fc3ec62-c388-4af4-9eb1-f939d8b6f035","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":206,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"bce38a86-ea9a-4f54-a02b-8a7cbdbe5c7e","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":206,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"b9cfbf40-1c06-4fa7-bf18-b4f35f7a6698","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":206,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"2486e9ed-a540-43cd-9261-dcdc5d3aba81","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":206,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"5a061edb-4f9d-4593-aefc-6913b41dac18","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":206,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"3a45da9c-40aa-4d36-a73e-d44322976eb4","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":206,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"6a69fd31-c211-4fcc-a471-167736c39f75","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"08dd105a-89f7-4a87-a331-e650d45431ec","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b7587732-e2ba-415d-b48b-72ed9630033c","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"754065d4-dd15-48f9-952f-42c619142516","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":207,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"cb0cb54e-ccff-496c-a76f-8f6434197b6d","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":207,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"046dd49f-2be0-4c10-936f-164ee0be7ead","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":207,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"6f1d850c-60c3-4482-8504-3ffbfbe1f368","block_type":"box","text":"11","page_number":207,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"1ee9f197-fed8-46b2-9a9d-3f6fd43fd95d","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":207,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"85a68aaf-8556-4718-b3ab-5ae410cc60f7","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":207,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"3289d721-04ac-4932-8052-f5293cda22a8","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":207,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"cc30fcc0-1e14-44d0-af32-5b317f45b226","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":207,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"408fcee0-4737-47f7-911b-de6e1200a332","block_type":"box","text":"regulatory requirements.","page_number":207,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"0613cac2-b8d3-43f7-a687-521f68d8f841","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":207,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"689c117d-f8aa-427a-b77f-7998d8e7308d","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":207,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"338ea53b-1c88-4df0-a63d-9cf263cf67c7","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":207,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"18ab19d3-0b2a-452d-b297-630a531ccd22","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":207,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"fef4b620-afe4-4fe9-85c3-32064416184f","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":207,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"7c8ff78b-fab5-49e9-b79a-4889ced041fc","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":207,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"b742086d-e4ee-46b4-a373-37426f2079a8","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":207,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"9fa0d9cc-3a67-4e53-b8b0-59a5d8e0d8c3","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":207,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"05f8418d-d364-49d8-8545-6886a29b363d","block_type":"box","text":"returns.","page_number":207,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"6f7fdeca-4af8-44b2-8fe1-65c3d17458b9","block_type":"box","text":"KEY STAKEHOLDERS","page_number":207,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"a45180eb-8262-4fc6-9a5a-19eed2b4de3a","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":207,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"51168782-6fdf-4715-bb6e-3936aeec2c39","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":207,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"5f12a19a-43ff-40c3-a08e-d62e4de26e35","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":207,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"f49de3de-9493-42ed-b0b7-8f5c60801dc5","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":207,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"a994dd5c-0cca-4b34-b63e-14a9b87e4d4a","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":207,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"87784a30-9ce2-41f0-a2c4-2cdcb4ff2559","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":207,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"e010c864-55e7-4218-b007-c1489f344bc1","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":207,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"03992c08-de81-44e9-9dd1-c4ea8f4ccf5b","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":207,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"32798469-fa89-4dbe-a54c-cab1de5282fe","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":207,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"0493a73d-33d9-407e-8878-1baaf351b6f8","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":207,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"b3228356-959d-44c4-8c16-4b8e5836db4d","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":207,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"65499e72-94f7-49fe-8e34-dd7963a89d0d","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":207,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"86be678d-e21a-48ce-96ba-360201187f7c","block_type":"box","text":"i.e.","page_number":207,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"99ee5808-d781-43ad-af8d-3867994e337a","block_type":"box","text":", one in which global","page_number":207,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"087ee0d1-8bbd-4607-b2ae-a81998624853","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":207,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"b76afa14-d3f0-4a7b-91f2-0e40e90876c3","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":207,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"22108e92-115a-4fb0-bc4a-262e5834e740","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":207,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"c79212dd-dbee-4d43-bffb-9e0ff3f06929","block_type":"box","text":"client.","page_number":207,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"da9705e7-af00-4ee2-97cd-85e42e09e662","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":207,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"c3d871bc-f5bc-495e-8171-5de72e8e41db","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":207,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"cf18e4b5-d0e0-4648-b24b-2d68bda0a2aa","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":207,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"0bbd5e79-8668-4e21-9d3a-c01b748dc449","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":207,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"91540fa1-f3c4-4f63-84ad-2e085ef61103","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":207,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"2f3ae3cf-de03-422f-a30e-3768d8781f26","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":207,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"37971f28-5804-4429-99ee-011fe3288f0a","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":207,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"7c70b99d-c12b-470f-8a93-16b1179effc8","block_type":"box","text":"1 and 2 emissions.","page_number":207,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"08c15551-c3b6-4ec9-aa52-afc95662f719","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":207,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"e0c7b2e0-e3fb-40a9-8860-01ba81092226","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":207,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"176f1cf6-fb61-41e9-becf-e91cacf1c6ef","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":207,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"b2f67945-fa7b-4c7a-9a3b-136a4ced41a8","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":207,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"1961b38b-29c0-4c07-adf1-920851d01122","block_type":"box","text":"11","page_number":207,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"57f885e0-d80c-48ca-b539-71b985829206","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":207,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"01ad25db-46f1-4dbc-bd2d-e1fccdb84039","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":207,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"f86d05f8-0ff2-46ab-8600-f3e1229a48af","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":207,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"2ce6d6f5-b070-4469-b5b5-e3fe2b03c94e","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":207,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"60ec7737-022f-449b-886c-1f3c9deee7b0","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":207,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"01a60f8d-822f-4790-b421-962d0b6f3602","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":207,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"145ff329-ea92-4744-820e-ccb522defbb8","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":207,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"fe9a8f2d-5e9e-402b-b484-bb05ba2f5fc0","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":207,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"808f0385-1b64-4082-8537-1d6245baabdb","block_type":"box","text":"sound governance framework.","page_number":207,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"4ef8a910-ff8e-465e-b35c-461ad85f4bb8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"d845515d-cf67-4cbd-a2b5-382698672d47","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b128284c-0d6f-4d67-9917-77d208d58f4d","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3fe4b7a-b4cb-438d-a240-ef9663fbecc2","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":208,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"20a95ec5-252b-4081-af7f-d0c2d52da1b0","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":208,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"6467e0f8-25b8-4b2a-ba7f-a1b2de0af920","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":208,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"9ad716f6-9e2a-46ea-aee3-75b5172e4256","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":208,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"dd5a3ffc-e334-4ad1-87c2-5ae28782a1e5","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":208,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"f7e56235-8df6-4ed5-97e1-991598081d2b","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":208,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"500716ac-790b-4118-9538-7a0bfa134cd7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1348c386-202d-46ac-8179-b78e64b82a83","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0bcddd41-6363-48a8-b165-695914680051","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c00bb5c4-55fe-4cd5-8aa2-336b5925f82f","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":209,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"7033cc92-cc1f-4dba-80fc-33ca72601fd1","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":209,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"7d808c32-12f0-4ade-a25d-43c091594e8d","block_type":"box","text":"Oversight","page_number":209,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"94b6eb65-393f-448d-918b-67cc6c3b6558","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":209,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"cca408a9-1816-4d03-aae9-3df70c23398c","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":209,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"7ed41fe4-5829-49cd-b0cc-a885ef49c97e","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":209,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"73bd0423-a316-4cb2-ad11-e5e31183ab95","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"65131e28-ea37-42ff-8881-d0b2c4fd5a47","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":209,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"c511e594-a1f3-42f9-a8d6-917375b4845e","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":209,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"ecc51829-95ce-4adc-bc84-cc85b34d1022","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":209,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"76cbf96f-81ca-4930-b48e-2e390399fde3","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":209,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"5d4bccc3-297d-4a3b-9ee8-60479798e6e3","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":209,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"1e135e4f-dcaa-4a11-aabb-cf66a793e39d","block_type":"box","text":"relevant active equity investors.","page_number":209,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"ba3a2f86-2f0d-45e2-ba97-82fd738e4de7","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":209,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"f0afa5c5-6b63-4ab3-a974-5dff247dcdd9","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":209,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"030cfc4d-4080-4277-a3df-c81cfed6e29f","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":209,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"b639947c-0898-4622-85bc-84446abb3362","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":209,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"a69d1354-17f9-4a95-b3f0-da29a189dbc9","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":209,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"5eb56175-010d-4fe8-832b-354722f769c1","block_type":"box","text":"third-par ty vote services providers” below).","page_number":209,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"9adcbc06-6186-4a50-a19e-74bb2c06c536","block_type":"box","text":"Voting guidelines and vote execution","page_number":209,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"ecc77f89-bdcd-4aad-8a86-850fe910a3ea","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":209,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"d0a69b7a-bb53-4c0b-a8ee-fc182fb0e897","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":209,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"990ceb51-b6e7-4372-9a06-072c5d4943c5","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":209,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"b68f643a-1f65-474a-a454-bb803dd2dbec","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":209,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"ba1c3420-f413-4209-bdd4-5f8aad79aa1d","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":209,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"eded6bc5-609e-4ff0-ab42-44000342dcbb","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":209,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"47963c0d-990b-4c2c-a339-341896f05eed","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":209,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"9a3add79-194d-42c7-ac48-2cb6cc90655a","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":209,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"ecad0559-067c-4e53-808d-89cd6b770f79","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":209,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"d3f28a2e-9802-43e5-b5bd-de44628b5e65","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":209,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"b30ba135-02e7-408d-a08e-bdc8ef663974","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":209,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"d9e68ad9-2832-4ab0-a265-467b03f60040","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":209,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"c3bb70aa-daf0-4c44-a46a-fdd8ba42751e","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":209,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"38b0cb38-e9bb-4407-849e-326e2e02e4da","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":209,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"da2979de-02f6-4ec0-be68-040116b6dd03","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":209,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"82b17795-c008-475a-b232-ad32ccfc2d66","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":209,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"fef96faf-3085-4f6b-9597-fe81d87fd584","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"125168bd-2deb-4559-8080-4e9461193f79","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":209,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"558222d9-6876-4ee8-a1b1-6c549a6df815","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":209,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"d6c3d28a-7d18-4c62-85d3-bb7d3e453518","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":209,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"054c5f29-0d84-4723-bc84-40e180a6d57f","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":209,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"e070dcb4-a903-4d88-9b85-18a74922c2a6","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":209,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"819561d3-3dec-445e-9f01-556996de8ca3","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":209,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"5f15f93f-3fe8-4dec-a128-f7995e1b505f","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":209,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"3389d3a6-f006-457c-8d3d-335819d2158f","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":209,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"9a71c057-74f1-42bc-b010-911ead98d3b0","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":209,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"10213ff6-942b-4a2d-8e3d-53704b231453","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":209,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"2b549105-0b02-4426-b254-bfddc527e51d","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":209,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"4ba77642-8359-43ee-a597-e1d4ca385b01","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":209,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"1c1c344b-fe60-45a6-8eee-39789f3a30da","block_type":"box","text":"Voting Choice","page_number":209,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"faaccdd3-0ace-4044-97a1-e412b20ba58c","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":209,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"4903faab-f40c-4ca0-83ee-464bc6a7ec06","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":209,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"ec6bab33-1368-4699-8df5-571c7805a6a7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f47d1b14-2aaa-44b3-9c1a-bccc3ccae2d5","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a1d2e75e-c0b5-4eed-a6e5-7aca6dfc4c15","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"011e25ec-802d-42b4-b851-9812941aac08","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":210,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"c1684b39-d8c8-4176-94e9-f9450612a484","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":210,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"dc99fa65-897c-483f-b8e8-976148d54f2c","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":210,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"93e3cabe-ce1c-4f16-be39-da9644dd5646","block_type":"box","text":"strategies.","page_number":210,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"6e197332-f831-4f70-b640-e41a7e3fd792","block_type":"box","text":"12","page_number":210,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"82075799-bdd3-4c51-a075-47378c80dbfa","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":210,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"b00b8b2e-f6dd-4346-b2e3-27472cc62dd3","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":210,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"949c58b5-3aa2-46a8-986a-cd9d98e34b12","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":210,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"6b135cb0-4e6b-4b71-add0-7d8faff80c9c","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":210,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"0a245b2c-74fd-4679-9196-eacb4572d524","block_type":"box","text":"13","page_number":210,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"80e3ff31-9618-4b5a-80db-4689fe7a2571","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":210,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"b33eecd1-3d1e-44f6-8c57-ff21fc3a17f6","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":210,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"9d4626bf-8d1f-4188-a1dc-c608a567baab","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":210,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"b7801c4a-6143-47c0-8ef6-138d8265583c","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":210,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"86b3e49a-5bee-45a1-9c3a-8b4301ab2ade","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":210,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"e36d6600-4194-4956-80bf-8f1d0eecc745","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":210,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"45e19ea2-7f7b-477a-8928-5ae39687f0ff","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":210,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"fe57454d-b749-4f7a-8e03-abe2cc4aa0bd","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":210,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"73c3b1c0-e688-4db4-9bf6-a79270daa58d","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":210,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"4c4baa72-f0cf-4e89-a849-e058cfb7a104","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":210,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"85bbe611-24a3-485d-a5ff-95b2cf67f7c7","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":210,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"762353da-02e2-4408-8533-76fe6d93c742","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":210,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"9ac2f30f-4193-40be-a327-3f6c126e58c6","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":210,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"388d5c5a-e162-4614-978c-a5461aa85f7f","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":210,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"0980531e-70bc-411f-802c-f8d6875f6b61","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":210,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"4f165fd2-4800-426d-a9ed-77b398d927d8","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":210,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"3e075a2f-26e0-4f4f-9920-36cd7bf67e23","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":210,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"148d0a33-bf29-4829-a135-47a31058a682","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":210,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"ee2d5836-092a-4038-8383-8a70f4c934f4","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":210,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"65b2fa99-0945-4f2c-b2db-296aa9eb992a","block_type":"box","text":"policies.","page_number":210,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"f48d1f9f-06e2-4ad5-818e-f59925070b6c","block_type":"box","text":"Conflicts management policies and procedures","page_number":210,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"bd8c9cbd-0e2c-4b42-b0fb-399d03dd32c5","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting 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BlackRock","page_number":210,"box":{"x":102,"y":639,"width":767,"height":11}},{"id":"eb36b2f8-0ac7-404f-b4f0-cabb3c8a586d","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":659,"width":6,"height":5}},{"id":"09821433-d589-4c2d-bb55-31c9c22903fb","block_type":"box","text":"Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock","page_number":210,"box":{"x":102,"y":656,"width":698,"height":11}},{"id":"4a24b757-7226-4da1-8e34-e01e45f70ae9","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":676,"width":6,"height":5}},{"id":"2344e0ee-4dd6-428e-8a15-6c88944261ae","block_type":"box","text":"BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds","page_number":210,"box":{"x":102,"y":673,"width":789,"height":11}},{"id":"dd452218-dc52-4cfd-b5b8-141f21604ded","block_type":"box","text":"managed by BlackRock","page_number":210,"box":{"x":102,"y":689,"width":163,"height":11}},{"id":"ba302e63-ce24-4508-bd62-2bc0e5cff85b","block_type":"box","text":"BlackRock has taken cer tain steps to mitigate perceived or potential conflicts including, but not limited to, the","page_number":210,"box":{"x":102,"y":707,"width":785,"height":11}},{"id":"11771b91-4a01-436c-8e46-897443c0cb48","block_type":"box","text":"following:","page_number":210,"box":{"x":68,"y":722,"width":66,"height":11}},{"id":"5f8e8d8e-3a36-4c59-aa9b-b01141579c1d","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":742,"width":6,"height":5}},{"id":"62e0832e-34e6-4aa3-83e6-2ed3531bd68d","block_type":"box","text":"Adopted these Guidelines which are designed to advance our clients’ long-term financial interests in the","page_number":210,"box":{"x":101,"y":739,"width":741,"height":11}},{"id":"435ea76e-9e95-4e2f-84eb-501fa924febe","block_type":"box","text":"companies in which BlackRock invests on their behalf","page_number":210,"box":{"x":101,"y":754,"width":383,"height":11}},{"id":"e6138ecd-c096-43a8-8e41-e57fad50820f","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":774,"width":6,"height":5}},{"id":"f968917f-0c0e-4d47-9f06-db2c74091ed7","block_type":"box","text":"Established a repor ting structure that separates BAIS from employees with sales, vendor management, or","page_number":210,"box":{"x":102,"y":771,"width":757,"height":12}},{"id":"36808d7f-1fb0-48b2-9136-7bb705be5761","block_type":"box","text":"business par tnership roles. 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BAIS prioritizes engagements based on factors including, but not limited to, our need for additional","page_number":210,"box":{"x":102,"y":831,"width":762,"height":11}},{"id":"82991a84-a74a-4131-ba26-07252b67f521","block_type":"box","text":"12","page_number":210,"box":{"x":69,"y":861,"width":9,"height":4}},{"id":"9f3cd46b-4406-4fcc-838e-173e55f99db4","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-par ty proxy advisers the","page_number":210,"box":{"x":83,"y":860,"width":814,"height":11}},{"id":"db21082e-6bbf-4900-9382-555a7add5dfa","block_type":"box","text":"policy that best aligns with their views and preferences. 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In mitigating conflicts,","page_number":213,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"a87c5746-96ba-43f0-9c92-70b183a32c3c","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":213,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"1b0c0bd8-7e4e-499c-86f7-bc62c7e1d7a8","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":213,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"40bbc13e-f9f7-440a-af33-845491df8353","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":213,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"8d9fbb26-1c15-4285-85dd-9281452eb503","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":213,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"2d5ded17-b787-4af0-aa53-4cf01c246ed8","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":213,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"1a96ef46-0d2e-414d-985b-05edad566531","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":213,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"b6b2e74a-57c7-4b1e-95d6-11c900d29395","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":213,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"aec868f9-3b3c-48c1-8cbf-d37296aa788f","block_type":"box","text":"connection with proxy voting.","page_number":213,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"24f199e1-6f2e-4582-b8c1-4c628d45d50e","block_type":"box","text":"Reports to the Board","page_number":213,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"ddf8ca8e-efef-415c-b7f0-e5aa242d8c74","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":213,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"668d045f-3ce0-4125-b62f-392f789058bc","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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These are topics that shareholders may have","page_number":218,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"fd08e822-b119-4833-88f1-d00f71234675","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":218,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"8b7b161e-45ff-40f0-aef1-7a33fec09247","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"8fb1924e-21ca-47cc-9f34-30d1839d479f","block_type":"box","text":"Boards and directors","page_number":218,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"4b910936-c68f-4077-972f-8be9581b219d","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"bc796746-623e-448e-bbb9-6c74dafa966c","block_type":"box","text":"Auditors and audit-related issues","page_number":218,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"9c313fb9-e69d-4bac-916c-ed98cc2b60b2","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"e9fae0ec-704d-4c46-b276-ba27ebe3bd63","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":218,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"1f10e461-6272-4102-8d78-887814d642ab","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"c3468abd-3e38-4100-948c-0b18aad4a04e","block_type":"box","text":"Executive compensation","page_number":218,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"9f235682-abac-4b73-ae9b-c69058f53dd7","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"20c91aa2-6d3c-4259-a943-9d0a0d95268f","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":218,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"b8259b83-4552-4201-8d3a-25e2981bc2fe","block_type":"box","text":"•","page_number":218,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"bd562f62-cd03-4138-ba20-d5c0523f2edc","block_type":"box","text":"Shareholder proposals","page_number":218,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"5be881a8-7ca5-4e76-9cc8-1e7112716d52","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":218,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"79dd9cee-8669-4190-a5ce-cc93b003b428","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":218,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"55431f81-b43e-4b89-b145-bf079e63cfb9","block_type":"box","text":"which companies operate.","page_number":218,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"284ccd3b-6234-4fdf-8ce6-332685a217c7","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":218,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"d3aa340d-d337-43ad-a9fc-9e05290f4e67","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":218,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"d0dbb0f8-f201-492a-aeb2-8d6d8957630b","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":218,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"f82ee95b-8647-47aa-9a51-3e684c42aebb","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":218,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"643a9bef-c15a-4b15-8f53-7245ff6463ff","block_type":"box","text":"4","page_number":218,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"6f207a9a-b00d-42bf-a965-bb2079f61f3c","block_type":"box","text":"3","page_number":218,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"c328e599-19fe-4771-9462-b10c1d2fa819","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":218,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"664d5b42-c822-497d-8a89-fb1c9170e8b0","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":218,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"8ae1962e-65a4-408b-b75e-973e931026fb","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":218,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"f3190c9d-02d3-4611-b4bb-eabb9c40ec6f","block_type":"box","text":"4","page_number":218,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"ed85cf54-41e6-41db-a19d-c6bccb6693a4","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":218,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"6aa9be83-dff4-4fd8-9188-2a939a658976","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":218,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"074f4256-e229-4d20-b5ac-d19b4a430af3","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":218,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"75299cec-e74a-4b2e-b948-c5531c3a016c","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":218,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"7d35cc82-36e0-409b-8410-7ee0c36afcca","block_type":"box","text":"guidelines.","page_number":218,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"76282ae2-fde3-49e2-a117-f4483f2d7489","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"15e4841c-a054-4568-a988-056eb032f0a0","block_type":"box","text":"Global Principles | 4","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"95bac265-44af-48b0-b256-cccf8204acf4","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"85313d54-916c-4ea8-a41d-d0284ec4aa7c","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":219,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"83775c24-c9b4-4ac9-a5ee-ec75231354ca","block_type":"box","text":"Oversight role of the board","page_number":219,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"d03c46ef-2827-405f-b13f-7aa572991645","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":219,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"5e5f5ceb-2c59-4e76-b5b3-0a7787a655fe","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":219,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"90fc199f-7f0d-4b18-b7e0-3bcd23c5e0b1","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":219,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"658e275d-b480-4bc1-812b-e4ad9cfdd09e","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":219,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"7219f5bf-fb02-405f-bfde-ef4bbfee8052","block_type":"box","text":"long-term financial per formance.","page_number":219,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"60408218-6041-4221-a1a5-74e651b379d2","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":219,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"a1fada29-247b-4306-99e7-3b48a1d1ad4e","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":219,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"b7989cbb-2ec2-44e8-acb4-58d651cf80af","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":219,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"af55fcb2-6c6d-4203-9331-bc35ab67197a","block_type":"box","text":"the business environment in which a company is operating.","page_number":219,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"067666a6-ed1f-4ca8-95d0-f9d32a256ad3","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":219,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"b640f213-bc8c-4189-8619-b36b622646d7","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":219,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"39c12ad6-25c1-4d21-ac3b-761b5ce051ed","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":219,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"6aca314f-1634-4898-8494-0643075e4b0f","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":219,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"93797e5f-fdaf-4f36-9c3f-edf94a719e95","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":219,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"b49af7d0-94cf-4446-9e55-d849d2c986d3","block_type":"box","text":"mitigating such risks.","page_number":219,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"070c296b-53dc-478f-9ff5-c2c521c0eebb","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":219,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"5b4b1930-3d7e-4fba-81cb-6a31c296e0a4","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":219,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"cf50976c-ce46-4361-8a92-cba3b0c51089","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":219,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"32aa115d-17b4-44a3-b20e-363f40ca8edf","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":219,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"afe22f33-0b97-485a-9f7e-beedbe005736","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":219,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"3bbf49d8-3270-4d7b-a61e-f15f9f184097","block_type":"box","text":"strategy.","page_number":219,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"b5f7730a-c8fd-4e70-b576-f739092a473a","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":219,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"6860f480-8f89-4910-9e26-d5fb54cbff4e","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":219,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"2b64a4cc-975e-4f7e-860f-82e4a557f69e","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":219,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"95117078-26c7-4689-ad74-d6ba5fecff5a","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":219,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"8d13931f-777f-4002-9a99-d5f1f95427b6","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":219,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"dfb9b4a7-8c51-43f5-84b8-85ddab2d6240","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":219,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"b1d80d77-00bd-4d7a-a295-9b9da36335da","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":219,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"33370e51-172e-43bc-a469-064d606d58b4","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":219,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"95172e53-9888-43c9-898f-3107392f119b","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":219,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"9d67b607-b91d-4266-8611-85b590bfd18a","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":219,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"d94e38a9-aaf8-4a31-8d19-c19aceb51c0c","block_type":"box","text":"Regular accountability through director elections","page_number":219,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"454d6079-69d0-4260-97e0-64bca2d9ab88","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":219,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"d9db3782-31e0-4f3e-b9e5-156c38e33fb8","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":219,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"0336fa8c-c817-490d-a90b-77e60a826525","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":219,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"bee4b2b8-6b0a-4b1f-b12f-76d876000e2b","block_type":"box","text":"5","page_number":219,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"fdaf0d87-eaef-49b9-990f-a1cd8b9e4c25","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":219,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"44181177-b075-40ff-911b-724c4de37680","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":219,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"51c38234-5d37-4c7b-9d6d-7adf38146960","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":219,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"6c2285d4-d7cd-4451-8236-b6e57bd56bb6","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":219,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"d66098c4-3dca-4bdc-8dcb-201f8a26abd2","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":219,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"64de2d31-cecf-40cf-8f4d-3f205794ff3b","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":219,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"90c4ab4b-7da0-4fe4-b333-25bb00075b2b","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":219,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"11a96f14-e00b-41f2-b5ee-6617e6c3ec9a","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":219,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"7b615187-e83e-4de1-9e53-f3902717b0a7","block_type":"box","text":"5","page_number":219,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"84d79992-1d25-4aae-a481-f53d8715d3cf","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":219,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"43721ef6-8ce3-4101-be0c-864ce1084af8","block_type":"box","text":"market regulation or voluntary best practice.","page_number":219,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"7635f491-21af-47a0-83eb-70726fc7c9b7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0d9e8da9-c495-4e05-bb28-492739196a40","block_type":"box","text":"Global Principles | 5","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"1b7a5647-3c82-4ea1-a49c-929f93d2a92b","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5467280c-d559-4ed2-b081-57390aac5933","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":220,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"983461b1-0927-4887-a357-582573d3bcbb","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":220,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"c1208f81-68bf-4090-89ca-f310f10acd77","block_type":"box","text":"recently.","page_number":220,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"fe745b7e-7f89-4856-ad27-ed25a50356c0","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":220,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"91c74b1e-9b20-436a-852d-5733d727939a","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":220,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"3e8eb0a4-bd81-41dc-906b-c9879714a5d1","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":220,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"52736fe3-9a15-440e-9457-d03c91674d9d","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":220,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"20b72c5e-aab1-4509-88ae-07adf8137c7e","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":220,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"4bc246bf-2cbf-43ef-8f29-13c3e188aa79","block_type":"box","text":"Director independence","page_number":220,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"8c23dab3-8100-4e2d-9273-c4ef92b3fdec","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":220,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"6139da71-3264-40a5-9c22-1dfc26573caf","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":220,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"b686bf06-7c41-4aa6-b630-f7ca1a120729","block_type":"box","text":"6","page_number":220,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"d0b01481-877e-49ab-88b7-0f57f0247069","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":220,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"3719017a-d702-4131-acc8-44ce8d1362c3","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":220,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"8115c12a-26f6-4722-94c1-790b1fa45da2","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":220,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"0d86a874-b704-41a4-82a0-b56b4522cc97","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":220,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"66cf6c03-c300-4187-80bf-9eacf7a46f55","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":220,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"5952ece3-0c58-4157-bd80-b20a4434598b","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"a15d0547-bc43-4ec8-800f-6aec60db0b61","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":220,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"3b7ad64d-b97f-4c2f-9188-4643f4d658b1","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"daf59fa8-5cba-4b25-876c-9134a6a65dc4","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":220,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"7ab0cd4b-399f-40b3-b9fa-ce1551b07700","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"1849aa4d-939e-4b90-9ee0-40bb0e8966a9","block_type":"box","text":"Interlocking directorates","page_number":220,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"88c69f2c-de01-4e52-b23b-f14054a023e5","block_type":"box","text":"•","page_number":220,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"5ad45161-2a03-44f3-a4b8-d3f61eeed05a","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":220,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"8fe7896b-022a-4b5c-9360-603b86eea883","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":220,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"b8eeb7c7-b087-4691-b783-fc8f411edd43","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":220,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"22a0a4ba-350b-4cb8-9628-2dc1f59bae95","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":220,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"2513f62e-2170-40b2-881d-2383bcdad337","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":220,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"f9f2c7a8-0b75-4195-80e7-dc21be4edc43","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":220,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"bec1ea98-33fa-487e-9cd7-198c26286003","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":220,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"0d760388-2d20-4095-9357-9138e80ef249","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":220,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"08f7fc13-dfd3-4f8a-91cb-edeb8788b6db","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":220,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"8d07861a-5d94-4171-a0a0-60d1a5830b6c","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":220,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"9ec237ba-e726-4cdd-a44a-a3eb8a791e82","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":220,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"791c03b5-2da9-454e-90dc-995ee794c084","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":220,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"58929319-d125-4da0-8cb9-574a1abb425b","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":220,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"2944e48e-9ed2-4713-baf8-7114db757eed","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":220,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"f931c38e-5853-4ab8-8dd4-2986505d8961","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":220,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"b609250b-d4fa-4ce4-a231-fa17cb4ce540","block_type":"box","text":"Sufficient capacity","page_number":220,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"383cd4d6-ea0f-45d1-abb0-31200a8ee921","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":220,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"3f714452-6065-4e0c-8268-2cff3fa08823","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":220,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"0e8bf589-abe6-4c86-8297-061563267eb5","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":220,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"b8c7bf7b-53a3-4bf2-9bd4-3ffd64860c2b","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":220,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"2f3e0783-9f91-4fed-b048-93d5544d0065","block_type":"box","text":"Board composition","page_number":220,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"4870588f-9907-4df8-9925-3236ceb35d37","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":220,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"74957c57-8a8b-4ab6-938b-cb1a386598c2","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":220,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"91f276f1-1e00-4876-ae9b-2f1ec370afde","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":220,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"39a41e52-5aa2-4954-857c-af56945ef3bc","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":220,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"07390918-6dce-4856-ae08-0ebc40f04e17","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":220,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"2af02a9c-4b31-4252-a636-8e3a2b3aa971","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":220,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"307b4ff5-e899-4c4c-b48c-317f1cc3b4cb","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":220,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"0b4dde0a-737d-4830-a268-8e664c2df389","block_type":"box","text":"6","page_number":220,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"bf242816-4745-47a9-a225-40033079d8e0","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":220,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"81245705-c1da-48fa-839e-4c515da47888","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":220,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"57c35a99-4707-4704-b2c4-747118e6c52d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0f8d76b2-705b-42ad-b9f8-41051a50bb85","block_type":"box","text":"Global Principles | 6","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"4c051a8f-4044-4331-949c-1dd933d82480","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1aafaf00-f82f-4d7d-8ece-154ada44c180","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":221,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"06594d4e-aac4-41fa-9104-c96ddcfd4607","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":221,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"00565517-0722-47f9-ac19-1ea62ef00c35","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":221,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"8ff7aa96-666e-4f7a-b387-1832e5300c5a","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":221,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"8468a369-522c-4fb8-b83d-56d07e82aa17","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":221,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"02a0e1c4-4dec-4fc0-9990-f35051daa187","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":221,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"2ceca441-ac0e-4547-94ae-076a6d788e2f","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":221,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"8d1e5a18-fcc6-4a2f-8b3b-d357f4160253","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":221,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"4f2278fd-fd3c-4a86-a20f-4d3acc60a4e1","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":221,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"f3452cd3-fe6b-4e65-8a1d-f8959e4592d3","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":221,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"b5b06f39-b095-4a8e-80a7-852b9ed8fd11","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":221,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"e972ae10-42b4-4197-9c62-0b8b3b35464d","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":221,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"33eb7508-340e-4a70-9ca3-8aab204cddc6","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":221,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"391b43bb-47f6-4321-bb29-0686bbaa32ce","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":221,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"d34c83a7-caa5-4251-a6fd-1122359c8124","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":221,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"d2b61084-495a-40dd-a7c3-ee13b9d4263a","block_type":"box","text":"systems.","page_number":221,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"06c29cde-c4ff-4aac-a5e7-a6f1aeb27d2c","block_type":"box","text":"7","page_number":221,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"b9c1a40b-58c0-4426-a395-365285014663","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":221,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"3708aa59-d6c4-4869-b3e0-c1527c6a3ffd","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":221,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"2da8495a-27fd-4c2b-bae0-10e806e0aed3","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":221,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"53a27ce5-fe1c-4496-b20d-4fb7f9535d99","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":221,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"c1855efe-1520-4c9c-9884-410fb643961d","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":221,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"9fcf7e3c-e966-4c2d-8dff-2b947bd6545d","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":221,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"b8c1b53e-f356-4a03-ad3e-174414642fc8","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":221,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"0b683913-fdd8-45f0-99a9-7d7a814ce0b3","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":221,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"4ebf2213-6ec7-4810-82bc-0999d920844b","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":221,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"d9f0c499-f499-4e0a-b5a2-1b24ee03cdb9","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":221,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"f379a528-8952-47fd-9329-f781ec54fc81","block_type":"box","text":"or internal audit function.","page_number":221,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"60e8bd06-f3cb-4480-a1bf-ed07b88ccb1e","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":221,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"723fd735-eeaf-4ecc-ba16-e5bbfe257ff9","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":221,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"b390db21-4df5-4df7-a30e-1e95d8bf2f13","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":221,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"0d7ec9e9-ea30-4f97-ae4e-a45ad9e7e8db","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":221,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"167531a1-6b14-4c3d-a52e-329106304fdc","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":221,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"7cca4eae-ee21-4872-b46c-8c74ede42664","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":221,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"95708784-da4d-4f1d-a28f-ea7b30b8e736","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":221,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"676fe338-bf05-4ef4-9686-36623ed1383d","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":221,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"0b238324-dd20-4d37-8ff0-deca70fe33b8","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":221,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"478c546a-3136-43d5-bb05-99416008f30e","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":221,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"dfb8ea49-bd41-4846-84b2-3e7999eb18a0","block_type":"box","text":"risk.","page_number":221,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"b6f20add-a3fa-4c9c-9a08-b9e39aa7674f","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":221,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"714520d6-5e4d-46af-9048-574d488d8a59","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":221,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"a704bbca-77ca-419a-9358-f85e9df524b3","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":221,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"ac276cbe-a9ab-49da-b7d2-67c142a60d9b","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":221,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"ba0df92f-7bb9-4e96-b6b7-cd93ecbac98f","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":221,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"85c64133-2985-4508-ae37-bd6d9341b339","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":221,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"fe1f6fd9-357a-40f0-b8a0-00c1a2b2f8f4","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":221,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"7e67f2cf-0161-43c9-bd28-2a79fcca0ac6","block_type":"box","text":"7","page_number":221,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"688ad808-a2d0-431a-8d71-6a33acc06e5c","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":221,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"3de6f371-d1d7-4f44-9673-67c77fa987e3","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":221,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"a45b23bf-94f7-4a0d-96f7-fe627d92183f","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":221,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"e9b7eb3a-a866-453a-b93a-047b937cff8e","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":221,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"c4c733e5-68f3-44ac-8de1-040568612dcf","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":221,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"f900a406-12ea-42ee-b03d-4fbfdeef13e8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c4a348fb-8d88-4188-be8b-ba5c862fed77","block_type":"box","text":"Global Principles | 7","page_number":221,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"22b93ec6-8654-4616-8aac-06a6e1a547cf","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3c16063c-e59a-4fa4-aa43-f68cc9a043b7","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":222,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"9b8ca3d2-61b9-41c0-80e9-429389870804","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":222,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"376c1e7e-20b8-4941-8acb-050f382ee218","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":222,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"dc8ee307-8aa7-4582-8d5d-f5a5ec7acbfa","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":222,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"a794f5f9-24a5-406d-be3e-32d6f82da5d3","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":222,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"93331c25-1793-4a2d-b4b7-3450a19be19a","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":222,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"3ad33e4b-1e85-4947-ae62-9f742e95f987","block_type":"box","text":"minimizing costs to shareholders.","page_number":222,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"11822098-d75f-486a-83de-6e0fedc9bdca","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":222,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"a0f4092b-fc81-4877-9f79-8ab8d26b32d0","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":222,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"911b6336-d11a-478c-8e7d-c93e7110d3eb","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":222,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"f9d94182-0794-4199-ad30-adcbcd0b135a","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":222,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"a1c0ef12-f87a-47c2-a61e-bf5335026cea","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":222,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"9a26924b-6c7b-458a-9ac9-0348c24cb245","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":222,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"0209993f-4ce0-4b7d-9e09-52c177a88569","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":222,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"9debb3fb-6af2-4a25-bd81-15316589cafd","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":222,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"9e905ed2-92c7-4ceb-845f-e4b54ffb93c0","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":222,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"fb7e37b3-5906-401c-81fa-76016b7317e7","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":222,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"f4e2beea-e4c5-4069-9bba-ea7cc5770c16","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":222,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"18d9e2cd-5d59-4dd5-a590-7ed43475ebd0","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":222,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"d953245b-7c46-4318-9da4-6f3ec2842770","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":222,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"2c35c546-6bf8-4b72-99b0-1978714da1dd","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":222,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"b225f94f-8fde-4f02-b494-4ed9572c9633","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":222,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"dde588f6-2895-44fb-801c-e9602bd0f5c5","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":222,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"ebd478b9-979e-461f-ae1a-b911c54d3227","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":222,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"b6076bad-972c-4e02-a88a-3bfe6c1d571f","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":222,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"267477ef-4222-4d11-a2ca-29c63e536877","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":222,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"4c8ce8cb-a0df-4f75-80a5-2d7a56d0ff8e","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":222,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"e48cb304-4580-4e80-9b31-c799d2a7c06c","block_type":"box","text":"ownership.","page_number":222,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"9a4f7955-69b4-45dd-8c1c-3f909cda5827","block_type":"box","text":"8","page_number":222,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"4ef904f3-cd92-4005-b499-425a544f3628","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":222,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"1b19408e-7fb0-45e5-b94a-01adb13a6a5a","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":222,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"e1aa34ee-d15f-42d3-83d0-33cf3e64e58c","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":222,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"91bf8aea-1d59-4834-b222-7a9fdabe0905","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":222,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"fec1c6a1-ffb5-4735-9ff5-f3f188dcc18b","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":222,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"e946f4ee-8bbe-4891-8395-c1f6ce2f2cd8","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":222,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"783470ad-1590-46c8-850e-785bf68f6f1a","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":222,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"04d1a26e-29d3-4965-a0eb-9a068d8a10dd","block_type":"box","text":"results over a period of years.","page_number":222,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"ddf722f2-29a5-4bc1-815f-f46c3a0ed0d1","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":222,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"43ccf49c-e7e9-4a29-95ff-c7213a19f566","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":222,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"06161ba3-bc26-4f36-bab2-ae4e5f7ddb8b","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":222,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"a0f6f876-0ef0-4db6-a8d6-c9c15196b018","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":222,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"b47958c9-8d63-438d-9504-8aff2dff2d88","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":222,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"604229f9-91ca-4a81-8fb0-c2c1d4e2a70a","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":222,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"32fb7181-5795-4a36-8978-aae969c8192e","block_type":"box","text":"executive compensation strategies.","page_number":222,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"2a545a5b-c4d9-4cb0-a8cf-3b90f23ea5fc","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":222,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"3848ceac-38f3-4df3-9429-4d15cba4b213","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":222,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"f7705393-0200-47e8-a734-3f7028524cde","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":222,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"798717fe-fd9f-4f52-b96e-ae9f2be591a6","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":222,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"6f92b5fd-8a2c-40b1-b9cf-e56445ac349d","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":222,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"c89d3f4d-3032-42b5-8d70-2dffdbe4580c","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":222,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"64c84b6c-b37d-478f-b251-46565fc6d090","block_type":"box","text":"8","page_number":222,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"2e21512b-fa0a-41c1-8bc4-7d61af5785e2","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":222,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"aacb6ce0-a756-410c-b599-e76c21065478","block_type":"box","text":"different markets.","page_number":222,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"7e7e839a-89ea-4b48-ac26-d05ff8c3aa7e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"348ad5da-20ea-40a9-a1b0-fde0555c186d","block_type":"box","text":"Global Principles | 8","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"235fc191-e789-4476-ba7d-0c00308814a5","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45aaa88c-1946-4769-bd41-264810edd2c5","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":223,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"50df4abe-b274-4e0a-af27-7559035048ad","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":223,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"f5b0575b-d089-44cc-8da6-66a7206e8c74","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":223,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"f3017db5-c96e-4035-a2c3-3f0acc3b0650","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":223,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"c4dbdcb5-ab8a-4512-9430-d772cba33170","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":223,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"5810f4ec-cb15-4ebf-9f4d-b0556514c956","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":223,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"436c5107-ebf7-423c-b743-9f97e28118fb","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":223,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"a40f3d47-e28e-4ab0-b51a-99b09d15a415","block_type":"box","text":"whom they are charged with overseeing.","page_number":223,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"00903388-9f92-417b-8c9b-720159d5beeb","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":223,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"77137328-f4e3-4aff-986b-beb0fa5d2ba4","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":223,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"b3f4ffe5-8a4d-46db-8fcc-650b557454d8","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":223,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"5fe3e223-fb4a-4e04-b897-e0ff3b55ed82","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":223,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"436b1d46-62a5-47e4-b878-4a5e28c181d4","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":223,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"81b9a0ee-938d-4ce2-843c-a43bceedba76","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":223,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"35b0a047-f597-4e1e-a571-875ae5c9cb9e","block_type":"box","text":"structures.","page_number":223,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"875d1d94-de4c-49b4-a10b-5c5381cb7bc4","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":223,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"6b97afbf-da86-454d-a716-42e8bcb325e5","block_type":"box","text":"Corporate form","page_number":223,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"997efc98-7089-472e-8c9f-2cb79d306009","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":223,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"48af085b-5474-4478-9994-4ff6bb1425f1","block_type":"box","text":"the company’s purpose and business model.","page_number":223,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"64886a93-b8e1-47ec-b4ea-e26ffc391cad","block_type":"box","text":"9","page_number":223,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"400fc312-224d-4395-8da8-b2c929793702","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":223,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"5927ebc6-b3b6-41ca-b14d-cadee1d19b85","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":223,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"4294b87b-f5be-4617-a2a4-cfc625f7db77","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":223,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"2f3fa52c-c348-4bbf-9453-ee0fbe404ca7","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":223,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"c6787bd8-3c2d-4ae3-8ac1-89020f54035e","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":223,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"dc776465-c917-4b9a-9599-deeeda06e4b0","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":223,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"9bb9a6d5-e8d8-4f67-88b4-746773941fef","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":223,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"3d4dec32-60b5-4936-a057-3a20167adf6b","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":223,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"b306345d-8d4d-4675-9fe5-bf4a472e1483","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":223,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"33b1f480-2f8e-4b36-ae1a-331d3d0285a1","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":223,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"63dd7939-ff31-411c-b135-726fc5b0620a","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":223,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"571aff04-17b7-41ca-ac1e-09f9eebbe8c8","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":223,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"c92eaec4-d9f0-4a75-957c-3fc12c0d1f8e","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":223,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"f3bb6777-e2af-48bd-a2fa-5b0955ab2ae6","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":223,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"9ca29d42-9527-4094-abde-b018ed0b51bd","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":223,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"36c682df-929a-4dad-b64b-f854cd7f993c","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":223,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"8a979e72-9740-450c-83e7-9e98756c1d42","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":223,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"5771ed9b-7de0-4e79-9bd9-953296968d8b","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":223,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"d94453df-f885-4b41-940e-55b8091e5f4b","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":223,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"96e5f32e-ff48-4210-8065-59ac79c4bb5b","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":223,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"19451c8c-a857-4698-8150-fa96e7d99f3b","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":223,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"c16ce45b-43fa-4817-8ca7-c7db6ceb38c0","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":223,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"7049ff88-0c68-40f6-8ba3-ba3b7684ea4d","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":223,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"d5d55bf6-79e5-434e-8a69-3f7f37a1fc01","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":223,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"b69ff67a-0ddf-4797-b707-6587c5cef0fb","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":223,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"81608e55-167b-4e2d-b27a-b47268e64cdc","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":223,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"d674b776-f4c3-42a4-bd0e-7a26cf558004","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":223,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"f741217c-a93a-4c7b-9800-37f1247536d9","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":223,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"aadaa5cc-b5d6-4c8c-af5a-7cf4e6a1d78c","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":223,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"32d46bf6-cb14-4b76-aff2-1f442c0637bc","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":223,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"15ee7600-b027-4461-a785-3e8a1c4728fb","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":223,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"464e1325-f20c-4896-9443-e29d45d46318","block_type":"box","text":"9","page_number":223,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"e124d41d-3718-4d08-9252-df2479435744","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":223,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"20c2836d-fb65-4634-9a0d-31053d397d6e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"51812f12-3441-4f1e-907b-bf9a43411cbd","block_type":"box","text":"Global Principles | 9","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"8ded335f-71d7-4a6d-8590-042c36b90a30","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"789fd76a-555f-4098-b3e0-c8eaaef7b2b5","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":224,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"26a86660-fc91-4782-9f5f-fa0b3d72ca97","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":224,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"6f2b76b6-f66f-4376-bc1f-b886e003202b","block_type":"box","text":"long-term financial interests.","page_number":224,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"0c5889e3-a43c-4a0d-a725-c8db77ccd3f4","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":224,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"90912915-4b5a-4a27-a1b4-71ff618ee182","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":224,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"3e4d9ec0-b7bf-4692-811a-e861e842b28b","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":224,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"97ee3114-dee1-4352-a0bb-1edc8dfce061","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":224,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"d5cddfe8-9ad7-49e0-9ee6-62f240005bd9","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":224,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"2562cc00-160b-4260-b53f-1a2939f61843","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":224,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"3e0319a5-e714-434f-bdd4-d4e12c76f9bd","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":224,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"081f1934-ca53-4327-b514-145afc9db410","block_type":"box","text":"term financial value creation.","page_number":224,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"c8cf50fc-3d94-4b95-966c-72bb43b7a432","block_type":"box","text":"10","page_number":224,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"4e44c4c6-3084-489e-98cb-511221d107bc","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":224,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"f0c18b77-a065-4b7e-980d-7719d75a4b63","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":224,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"c97b15f0-ecf7-4323-a607-69a306541db6","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":224,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"7752c912-bcef-4a02-83da-84c642805df5","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":224,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"9d80f2a8-bbc6-4ec0-bb88-5a9c46bbf3c4","block_type":"box","text":"industry-specific metrics.","page_number":224,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"ed6b047a-ac19-4d5a-8801-54a49853b153","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":224,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"2bc8b711-5677-4db6-9932-67712feeed17","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":224,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"6ea60c90-e068-4c38-ae2b-c0ebec8f4b7c","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":224,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"630fc1b8-22ae-4b1c-9766-1c2ed0cf64f7","block_type":"box","text":"11","page_number":224,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"be42b8e5-cad6-4875-add8-c45238af6992","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":224,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"0af56352-6359-487b-acb6-b04787ad9d04","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":224,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"a8099a8f-042e-4074-94a4-97fdf5ee6835","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":224,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"a264f4ee-7497-492c-8cc7-cc63b346bc23","block_type":"box","text":"specific.","page_number":224,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"f846755c-f770-4744-8a16-fd83f999851f","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":224,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"fbb8c1f3-6c04-47c5-a804-fb6d6ed0a1d9","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":224,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"95a5f3f2-c370-46b9-acd7-79b4b885db39","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":224,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"3655cf6f-2d71-40fb-a42b-2e2d6e40c4bc","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":224,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"7b311a3b-e8cf-49c7-9d68-129040617117","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":224,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"7a5e4a2f-d60b-4af7-8666-1a68960d4ab6","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":224,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"706b2667-2506-4d18-8b96-cf427e2f32cd","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":224,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"239c0e9f-3f6f-4b50-a64b-2b81fd46ac0c","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":224,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"27d33f79-da5c-46d9-8554-d9b183a473f7","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":224,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"7aea72d1-be34-4528-b705-9e3e71ba9bb4","block_type":"box","text":"10","page_number":224,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"d7776beb-c8de-4599-bb79-99c382ad3266","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":224,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"5e4d6f32-63fe-48aa-bbab-53708ebbdb9e","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":224,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"6f6af591-da2c-4bdd-b0fe-598859a201f9","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":224,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"11411ce8-5865-4cf4-81b5-62abeea39068","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":224,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"0f361337-213f-475b-94ab-e1e91f4bb1b9","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":224,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"b01e66e3-f8a8-4fec-a997-5594c69fc8c1","block_type":"box","text":"11","page_number":224,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"f55745c9-2378-4e5f-8a41-47abe8dfedf6","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":224,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"996de0d6-4853-49b0-bd9a-9ff95aae25e3","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":224,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"7546e635-81e8-44db-b3e1-9c91fbdb35c9","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":224,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"9a9e713f-8927-4c14-8985-bdb5b47ddd02","block_type":"box","text":"converged under the ISSB. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":224,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"8f755e74-cbc0-43b9-bad0-2f363ded9460","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":224,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"47f9179d-4010-4a21-83c4-b558ccc6d219","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":224,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"2436a0c1-b9c3-4071-9163-526e098d5a54","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8a83ed62-57ec-465f-a0b6-73dee3e40c80","block_type":"box","text":"Global Principles | 10","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"822cfbd8-dd15-415c-9bfc-28f7edcdd448","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c2f8dd0-61fc-4b73-9bba-3ba096b8a34d","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":225,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"7280f87f-95e8-4325-adab-51867b4bd8af","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":225,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"ca8a73ab-ce66-4edc-81e0-62d905c79596","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":225,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"18b3dd25-d1a2-4b3b-b266-1dfdb6643a80","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":225,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"9cd80eec-bfab-4a40-832c-19620643b0f9","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":225,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"eb8cd76e-97bc-41f0-b300-0c0953362a65","block_type":"box","text":"12, 13","page_number":225,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"b2ee5c76-002c-4e15-ac34-0681c837e5a4","block_type":"box","text":"From company disclosures and","page_number":225,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"c79e89dc-cb2a-402c-9180-645b18523fc5","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":225,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"c6c46d7b-3299-43c1-8436-1ad164c8d335","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":225,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"08a38e2f-8f63-4063-893e-b0ad01bbec20","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":225,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"03f3d5ac-5517-4f4a-ab17-e9508a74e0d8","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":225,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"c458d4b9-46c1-4cd4-bdd4-0553a6fde522","block_type":"box","text":"viewed as best practice in the market.","page_number":225,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"975affd8-be4d-48b5-bf57-ec2c2532d146","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":225,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"34003660-7714-4191-ba59-5b36afb3462f","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":225,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"a6b6d51d-3590-4061-bf8e-5ace33650dcc","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":225,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"336dfaef-9f49-466c-a2be-2695eedb3bc4","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":225,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"cfcaa9f0-88a4-4ab0-b7fc-fc7ae419486f","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":225,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"f8500d90-0e59-40c7-ac09-fd167c681afe","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":225,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"ac549f8f-bd4e-4af4-8593-240d9a307e3f","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":225,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"7e29e3b0-5729-47a6-8ce6-9bacacf8912b","block_type":"box","text":"interests of their investors.","page_number":225,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"d9c1ec53-e6d2-4f26-9bbc-151535afc1d2","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":225,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"a3506fa6-32f7-4d14-88f2-632e90b40934","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":225,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"d45b2b1c-59b7-4357-84ad-93c1a0fa7e91","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":225,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"21edf25c-94c6-443c-a85d-53364779a7eb","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":225,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"7bfa7b74-52c0-4af5-9d4e-d87880a8c43b","block_type":"box","text":"good-faith basis as methodology develops.","page_number":225,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"bb8a5a8a-2df5-4c5f-8c29-adfb219931b0","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":225,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"6aabc4f8-b45b-40b0-bd95-5657a5feb2b6","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":225,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"14c4050c-cb53-4cdc-ba52-2528f49cd5b2","block_type":"box","text":"generate long-term financial returns.","page_number":225,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"4d4240a4-e08f-480c-8ba6-a3aa18beb155","block_type":"box","text":"14","page_number":225,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"ef7d44e1-1f1a-4168-931b-9069525091b7","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":225,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"656658f0-9850-4ab3-8368-ee6bd107848d","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":225,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e5384c6f-eeec-417b-a158-55be74d77240","block_type":"box","text":"15","page_number":225,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"3eafb1ee-b8ce-45bb-b17c-6f09504e9183","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":225,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"4a31fb6b-b9f8-4036-bc14-d9aaa4dee9c9","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":225,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"cf893e13-d6f2-4530-9646-87fcedf1583e","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":225,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"cce592ac-0f95-4f57-a587-773e666d3c5b","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":225,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"f4502c73-15d6-456a-a55e-bbc8368150f8","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":225,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"f184ef2d-ffbc-4e1a-9e50-e8efba6eaeb0","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":225,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"7c191ace-26b2-40b1-85c5-3603559e99ec","block_type":"box","text":"12","page_number":225,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"8835c5d4-14b3-4a69-8bf8-c53408a28c59","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":225,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"75974a56-649a-4cd9-8645-84d817ff84d3","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":225,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"92dd321b-c888-4293-87ff-773de6422015","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":225,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"0d81d3fd-55f4-41d1-9815-803a53027148","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":225,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"b700c5d9-3bde-465f-bf0d-a9003b5be710","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":225,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"b6d44e67-1c2b-4cd3-960e-38e02359f725","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":225,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"9fcbe55c-1bc2-49a6-9b9d-295b94099462","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":225,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"f95c1fa6-dc49-4731-a09a-8b813d81c38a","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":225,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"1c30ed6d-5130-40d1-8be6-5b2c5cfd433e","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"0d581b17-ed1e-402f-8950-9cd2257c806e","block_type":"box","text":"13","page_number":225,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"3afd4291-6d3b-4a46-b067-e8723e138d9b","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":225,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"d1bf5979-69f6-497e-96b1-bb5a5ff35d02","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"1c1596a0-b72b-4170-bc24-46031bda9859","block_type":"box","text":"14","page_number":225,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"9845a307-3f50-4c6c-bb02-9f26bc1fe633","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":225,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"79332e99-2b04-443e-988d-297bc7549c56","block_type":"box","text":"2025.","page_number":225,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"ddd72d91-34f4-4886-99f3-ab8efcc26aa5","block_type":"box","text":"15","page_number":225,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"225c8d1b-ef1c-4da2-a8d1-83948ccea83d","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":225,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"0016e5ed-aeec-4fd3-88bd-be93c5503a1f","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":225,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"ddb4720e-af0f-4215-bcdd-7d3d47c0551f","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":225,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"7fd5c936-b4fb-4212-bc9d-86c17701a78a","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":225,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"6874350a-5e74-4825-8367-34f1ce1c888b","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":225,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"22b7314e-7118-418e-bbec-346518630bfa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"511ed778-6e0a-43f9-83b4-5b3c0dc79799","block_type":"box","text":"Global Principles | 11","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"7b3d8905-56f8-49a3-b2cf-2514570b4002","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6edfea9a-b16b-485b-8c0a-41b985cddcf6","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":226,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"c14d5e1e-4e18-4d8b-be80-0b004d51a0d2","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":226,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"aa35c78d-659a-409e-a4d7-da5aa26f8e09","block_type":"box","text":"16","page_number":226,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"ea44ca85-1a6b-4fae-90bb-449bb9c1436a","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":226,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"9e70e6b5-4e9f-4b9f-85bd-d9601b5cb50b","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":226,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"2d6184f8-36fb-4589-bc31-1885787a29f9","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":226,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"7569f295-6bdd-4cae-acee-2738b5843722","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":226,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"eb0f0e73-03bc-4ace-84ec-93a515c07666","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":226,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"d1f35c06-2e84-46c7-a654-253d8cfa524b","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":226,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"8fb64ceb-c774-4365-83a7-8521f4090e61","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":226,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"2f6724cf-6b23-4435-b0cd-35016f9f6845","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":226,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"10fec110-63db-40b6-860e-bb8504bbee99","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":226,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"948271be-6336-4a34-889c-c9748652b77f","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":226,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"34d508fe-420d-42fe-8e96-2459b6f592d9","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":226,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"b4f38e12-848f-453e-a833-84bfdc053d6d","block_type":"box","text":"impacts.","page_number":226,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"3c216de6-8425-472f-9b77-1ab20b3f9f1f","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":226,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"883e8a13-957d-4e5e-a305-524f42c212f2","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":226,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"551295fb-ec4a-4c60-892e-8d4bb17b965d","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":226,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"69a81fd6-18dc-4d15-b3d8-a27d8a530241","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":226,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"5c574ae2-46ce-4d87-82c6-91d8edf34d41","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":226,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"d1e14137-04c4-4f16-91da-3708ad6d48b2","block_type":"box","text":"clients at the global and regional level.","page_number":226,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"ea7d6e59-7211-4a48-866a-e63a50a2e1cf","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":226,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"9a8a47a3-140f-45ed-b5b1-1b208b275d70","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":226,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"8a07ff45-0e90-4500-a2d4-455e3c0d64fd","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":226,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"441354af-fb1d-4ee0-8509-8b3655f9120e","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":226,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"8b8222a8-fb9a-41d8-b86c-0186aaac7147","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":226,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"41d9aa63-ecbf-4c13-bb7c-e88a8d65fe4c","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":226,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"0c99dcc1-1d89-4bae-b1cd-d2ef4bf7b2d4","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":226,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"e3f85cfa-20a8-4db3-bfd2-e08d6147d247","block_type":"box","text":"are independent from the investment stewardship function.","page_number":226,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"5c796fc6-2839-497b-8a0b-b706393d292e","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":226,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"a339f846-72bc-4db4-80cc-e8c776ff4c8f","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":226,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"e66b6fc9-2a81-44cc-b589-c5abdbe7ca22","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":226,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"300ac481-2555-415c-874e-335dd10ca8ec","block_type":"box","text":"VOTE EXECUTION","page_number":226,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"39840594-6dad-43e5-8dfc-ea6589ce2e6a","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":226,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"7c3a2b70-44d1-4af0-83f0-bf0e2bae13b0","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":226,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"ff477473-e77c-45b8-b2d8-9222a2baeac7","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":226,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"f7e9ea57-52cc-4007-836e-d8ba936b5fad","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":226,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"db9e1a25-0569-465c-b81a-c8486663f2db","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":226,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"4a59f272-8cfa-468d-ac62-365e3b91d682","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":226,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"b47f8df4-21d9-4edc-bc3a-12402fd0b55b","block_type":"box","text":"management policies and procedures,” below).","page_number":226,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"4755eb18-f86e-4aca-aabf-418e48328d68","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":226,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c7da4b06-5e47-4fba-a375-022642c4edb1","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":226,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"d7fe2fdc-6a74-4204-be3b-e37ca51ebf60","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":226,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"21f249b9-bf1b-4cd0-9f21-b7ab4a8cbaf2","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":226,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"7297836c-14ec-484e-9511-87d60383f747","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":226,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"7b4164ba-22ac-4416-b5f2-0146b593c89f","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":226,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"a8b486f2-857a-445d-8b98-7bfb9ca6e0bb","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":226,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"04747630-5648-4077-9c7b-3de556ebd732","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":226,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"293093be-4b9f-4696-a20f-5b861fe828eb","block_type":"box","text":"16","page_number":226,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"3170027b-9d2b-4c46-9863-95de7ecf2ba6","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":226,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"1b7cd567-db91-454f-814d-a31d7920128c","block_type":"box","text":"December 2025.","page_number":226,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"758245fd-56ef-415f-b229-dfc19a006767","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3649e441-ce8c-4665-941e-bf60dee7f8a5","block_type":"box","text":"Global Principles | 12","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"ffd71008-cd99-4ec5-ae7a-5cc3a2700d66","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4440b66c-c864-4631-affb-f1ec6f0c2fc0","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":227,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"5c3d79c8-119e-42e8-8429-a030f830c933","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":227,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"3120ed4f-d4c5-4f79-8ae6-9c0f30a64d92","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":227,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"4bfac8e8-945c-42f4-8916-1efb1c53efbb","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":227,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"ea0f0174-54e4-4c82-a6bc-9a8526d5b058","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":227,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"886fcbf5-51f1-47ef-a85d-a60d983cda21","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":227,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"8570f0cf-c4da-48f3-b8ea-eb0dd8e2bd08","block_type":"box","text":"enterprise-level vendor management activities.","page_number":227,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"027c418b-8cf0-4697-aac6-9a6494056301","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":227,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"87149f06-0f95-4d99-9a63-3d1596e6352e","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":227,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"27fb1320-30a9-4790-864a-0bb788de214c","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":227,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"24770357-1d56-49ac-8900-284a023d90b4","block_type":"box","text":"BlackRock employees.","page_number":227,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"5976ae30-604b-4f77-9688-fc938d30badd","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":227,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"a770a3a4-a56c-4d0e-8416-08854d171128","block_type":"box","text":"SECURITIES LENDING","page_number":227,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"26c5a5dc-808a-4ac0-babf-d26fb84b6c73","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":227,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"9d966dd3-0c81-463d-85c2-1c7e84d3510f","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":227,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"5d7ad379-21cf-4411-be65-7934e5b8210d","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":227,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"d93b67b8-30fd-470b-bf95-f92db12e1ea4","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":227,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"81421292-16aa-4cbb-8774-e14e6526f6a5","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":227,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"87572583-1972-4252-b756-d250b946bfbc","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":227,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"23a1de57-f963-4ff7-87d0-0334fb3259f6","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":227,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"b34a9699-0568-4666-a51b-ab1c9f535312","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":227,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"15b95dbc-7856-4aa7-9171-517b3b667c1b","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":227,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"9afa523b-eba7-486b-846c-095091e7e4f5","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":227,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"9b87671e-2606-4231-b787-6f2892fc3c91","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":227,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"7a13202a-944f-4e09-a488-09087b2a2a39","block_type":"box","text":"of recall consideration).","page_number":227,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"9b4461eb-ad99-43a4-bcb6-2db39b2b1b26","block_type":"box","text":"17","page_number":227,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"c6423818-00f4-4c83-bd68-16867aa764f0","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":227,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"bf2652b4-cbff-43dc-a112-fa62b9dbdfe2","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":227,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"5f58626f-775c-4435-9ec5-b4cc8f924134","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":227,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"ea6e6081-0afa-482b-851f-763536176d91","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":227,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"2b0f4770-a15d-4b34-af12-f35168df538d","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":227,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"dae728ed-57d4-408e-9ad4-a8ab6c66a6ec","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":227,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"38a788ba-27f4-46d3-a5dc-d08a164cee9b","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":227,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"fb55c2ee-fafb-45b0-90a8-1c0c578b5cc6","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":227,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"08781609-0ff8-49c1-9f3f-5a3b65ec45bb","block_type":"box","text":"and may modify it as necessary.","page_number":227,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"6c94bdc2-5ae1-41e2-b7f1-04a1a800736f","block_type":"box","text":"VOTING CHOICE","page_number":227,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"d6533862-c7da-475e-827c-c20520b1052a","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":227,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"9e9f2074-8d2d-4afd-9092-e64454737129","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":227,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"fc6fa137-4fe2-498c-964b-c0e25957f38a","block_type":"box","text":"18","page_number":227,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"3481f71b-8f4d-495e-ba54-b58326c64a39","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":227,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"02ef8994-1c26-4999-b837-e3131dfe5318","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":227,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"7fd4e56b-0a3d-4ca0-80c4-3f005f6a6047","block_type":"box","text":"17","page_number":227,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"a5c356cb-7db5-4859-99f7-83db579c5d46","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":227,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"dd2e0639-7430-4d53-a33a-202fcaff8046","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":227,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"87bdcc0c-accf-4f5a-9993-077f2b59d910","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":227,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"f2d156c6-205b-4a62-afd0-937532daaaf8","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":227,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"ce99134e-8967-4b68-8f1f-f33055d2033c","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":227,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"82db183d-5059-4044-b27d-cd7eeeb3aaa3","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":227,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"7bbad42d-f737-4163-ba13-a3b8d49cc54f","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":227,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"3c019487-e076-44ab-b288-d4e2200d5db8","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":227,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"2d2ededd-38c3-4fc6-a869-b46eb5ff60be","block_type":"box","text":"18","page_number":227,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"10f29df9-a246-4368-837b-7af81aa72157","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":227,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"83727174-a33c-4f53-9995-9aa1965df3e9","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":227,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"4645d6f0-969a-454c-8440-405c1c326752","block_type":"box","text":"including the decision to lend securities.","page_number":227,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"c3ee9061-720b-4f81-9cb2-1e4987b5900c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"96705cc1-72c5-4ef7-b4d7-8e23e5e07486","block_type":"box","text":"Global Principles | 13","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"76059675-2f6e-4bdd-ae4a-668d4f3eb1fb","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e32d5f0-46ac-4f69-ace1-04c8d1d1c346","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":228,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"6827683b-55e2-45e1-ad6b-166151444031","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":228,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"2252f7f8-0bad-40eb-8756-4a0552f61d8c","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":228,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"4d12b6fa-83e8-4e65-9ee0-446a77b21e2c","block_type":"box","text":"19","page_number":228,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"a8eb0adb-7b0a-47a6-9811-99533793836b","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":228,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"52b015e1-3a8e-4a36-879b-1cdf33ac447a","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":228,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"f3a1cfc7-5e93-44c3-94f0-7f9360bd9d20","block_type":"box","text":"20","page_number":228,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"b4b73934-1765-48f5-abe5-66380d2b8b99","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":228,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"f956f242-c543-44c1-a816-d92a8c6745bc","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":228,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"331f2f26-9131-4153-a76e-f384555d24c3","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":228,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"f674b243-ef09-46a9-87f5-65f06383c685","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":228,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"06b455db-b287-4467-99d4-6de003fe43f7","block_type":"box","text":"21","page_number":228,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"82cec66c-ceaf-474b-bd43-2e1f76921c2a","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":228,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"b8a1f90e-a593-4e00-a3a1-6321b01fa4f0","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":228,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"5ae890a5-30a4-47c5-ac4f-09ce7e49eb78","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":228,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"54ce28e8-fe41-494a-ad15-b4c2d08afeac","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":228,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"1bbba4d6-8056-4201-9d53-5c9bc85dbb14","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":228,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"c0ce14ec-21f2-4bde-9f7c-e9381262658f","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":228,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"3a8dc99a-6122-435f-969e-6ab4469179b3","block_type":"box","text":"19","page_number":228,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"d491054c-6e2f-4c7a-9a48-9da8481d6711","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":228,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"7b1da2af-d542-458e-9fe8-6b830992591d","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. 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Fur ther, the Guidelines consider the","page_number":234,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"c17ccd9f-d098-4ccb-a672-a1e50b0a0f53","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":234,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"bc203e29-9596-48bd-8f10-91701d400895","block_type":"box","text":"does not.","page_number":234,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"cc246909-6b3f-4655-bc50-934686d57c03","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"08252158-dca8-479d-8eb5-6563b334057f","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":234,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"c230a1e1-dfcd-4923-b624-5c93717db666","block_type":"box","text":"limitations:","page_number":234,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"73d06767-f620-41db-a89e-6ae4ecb80b40","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":234,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"472c16b0-e200-499e-8c6e-1bfa7ef59398","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":234,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"ef746fc7-77d4-4106-aa34-663e496da3d9","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":234,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"910f9ed3-6d4d-475e-97a0-c0a94813a2a5","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"51dbd8a0-519d-42ed-bbe5-22b799bf2b44","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":234,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"0f18bc8f-1269-4610-ba0f-1bcc8a6f0674","block_type":"box","text":"The boards and executive leadership","page_number":234,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"a87fa154-20c3-4dbd-85a7-199dafe191d2","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":234,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"171b5575-9fd2-4a7d-92a3-2bf98dce2e0a","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":234,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"e73bf43a-e0df-4376-9f85-2cbadfd8032d","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":234,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"3f9f670d-77c4-4567-84af-321594099df9","block_type":"box","text":"Voting approach under the Guidelines","page_number":234,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"62998c09-77cc-47ca-97e8-98de9e808851","block_type":"box","text":"12","page_number":234,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"c8241ba3-18d5-46b1-bfe2-50d72b1d1183","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":234,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"3f0d3f20-4ae7-4268-bb2f-571a7d1082c7","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":234,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"d30dcbaf-3e00-4de6-819f-2fe9c165ffa2","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":234,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"294bebcb-1429-4657-a32d-fcb762f7e2f3","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":234,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"39f6c2df-6e38-442f-a643-0e7b312f50d2","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":234,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"a86645ac-b4c4-4ba5-9e0a-5bb14ea46b8a","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":234,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"de280d3c-1946-40b2-98ac-142a35302dd6","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":234,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"dd2876f4-e064-443e-916a-fdbf83bfbed0","block_type":"box","text":"Corporate Disclosures","page_number":234,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"113dd00d-8160-4e2b-923b-1aac9ab97976","block_type":"box","text":"13","page_number":234,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"3c8b482c-1a38-462f-bb04-299063e937ca","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":234,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"0a778242-3678-41ee-a31c-59b897b5dbf6","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":234,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"a02b0655-5467-42c0-a1cd-9741f69cb315","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":234,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"3e25e573-8625-4712-8f8c-93813839c8b6","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":234,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"28eafa1c-bea6-4f23-9b24-4552b1f70917","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":234,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"4356d25c-8e4f-49a5-b2d1-a095ef55ef3d","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":234,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"71774285-e5b3-47f8-a30b-d7744c1af240","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":234,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"001c7ac8-9d1c-46c3-86da-ed437bb9f297","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":234,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"70a89f86-d61c-4ee3-b305-646492c5c14e","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":234,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"ef91bda4-a0c2-4e62-84ac-59b969623123","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":234,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"48283eea-386b-4a1b-a636-14fca1c083ef","block_type":"box","text":"14, 15","page_number":234,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"61d72413-5e87-4ae2-9bba-56bfae489663","block_type":"box","text":"IFRS","page_number":234,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"9ae8abad-b726-4fb5-915e-d3417241e137","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":234,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"8c4623c9-97d9-40fc-8605-9b3be643b9b3","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":234,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"0bb427bd-5057-4a34-bc85-f85b4b1261db","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":234,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"24c8617c-d3f2-4e91-9eeb-d9314caabd56","block_type":"box","text":"and assurance standards are developed.","page_number":234,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"429c2203-4ea2-46fc-8a84-6354517cdd99","block_type":"box","text":"12","page_number":234,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"cb337d09-d5c1-48b5-97cf-c6bdd7150ed3","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":234,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"c0ce4b3d-cb7a-48f8-add1-ee99b0a390fb","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":234,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"485842dd-2b46-40a5-846e-687f1b51d576","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":234,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"406b4910-54f4-4eef-abb4-2663896d0fd5","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":234,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"d1514ad5-bc70-43ae-8038-001f41e0191f","block_type":"box","text":"13","page_number":234,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"3a6a7b31-ba6c-4849-a81c-51919391ba13","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":234,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"94eb183a-b73b-464c-ad9f-c60be06edcf3","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":234,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"26b07fec-3dae-4938-88ff-97bf7b4591d2","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":234,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"87078f71-4fbc-4b3d-bcd5-b369ba30927c","block_type":"box","text":"14","page_number":234,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"acef4890-1257-4be8-aef7-b04f57ea5d20","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":234,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"6651cd65-9650-40ba-9885-52af75b9a3a6","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":234,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"d2742c42-94f2-40eb-a8d4-c54ecaa0fa54","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":234,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"b6b5cb32-665e-491a-9bb2-31ca6a628d96","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":234,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"4d63997b-a028-487f-98f8-68c479567678","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":234,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"79501fdf-36a0-4a76-ab5c-f9d181f474e1","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":234,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"ee99573f-f171-4197-a49e-baa6ecb7f256","block_type":"box","text":"15","page_number":234,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"27b8d80f-b242-4820-a0a2-decaa3672dc2","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":234,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"0c922909-d232-4cf9-a107-c0b124b799d3","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":234,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"d6ebc319-9e0d-43b3-905b-9509c42685a8","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":234,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"855c81d2-bd7c-44be-91d5-4995e1bc0b68","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":234,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"ec1876a3-fcbb-4c0b-ba33-8bae862b88e6","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":234,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"cdd5aab4-9f8a-41f1-9ca4-fb1e4282c844","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"97aa5021-e3dc-4693-8ce5-bd792a7b4b84","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"31179183-5bc5-44bc-b0fb-2e8b3fe828a1","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bc51de4a-41cf-45d0-8171-af01a5b4fd5a","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":235,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"08124a3a-6380-4925-9395-0078d15e2256","block_type":"box","text":"16, 17","page_number":235,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"567ccf70-5c98-4384-93aa-887eeacd8cbe","block_type":"box","text":"In addition, the dedicated team looks to","page_number":235,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"44932658-a129-410d-b085-39ed5d79b99d","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":235,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"92462560-70d4-4492-a306-806878f14cee","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":235,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"3385eaaa-47f3-4f79-b3c0-35ca48e5dc3c","block_type":"box","text":"scope 3 emissions reductions. 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This may include","page_number":235,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"0f12e198-0c24-4093-94e3-1b8b97b6f447","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":235,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"6317d878-f248-4cd5-8ffb-91600f8ce876","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":235,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"f8b68ce0-0636-46f8-8c5d-f97fc9987347","block_type":"box","text":"transition risks.","page_number":235,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"568e9c76-a761-4d32-a602-275cb7ce9e9f","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":235,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"c5e5a7b7-41a6-485d-9d4f-bc27416c2bce","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":235,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"a15c7dbd-9f98-4d02-94fe-31c3a4c94b6a","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":235,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"ffe98ecd-fc13-4a42-8e45-6839d800a342","block_type":"box","text":"Transition plans","page_number":235,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"bab6e83b-2654-4ea2-87a4-0d6276357e06","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":235,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"f79bb683-8b2d-4c4d-988e-7142c9fdfa52","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":235,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"dc6c06a0-8512-490b-926a-3cf303893b9c","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":235,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"032f8aae-d602-43ef-a44b-1bd8616bed1d","block_type":"box","text":"(see Appendix 1).","page_number":235,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"baf7fca8-2598-4cf1-9a2f-69a8a0923d12","block_type":"box","text":"19","page_number":235,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"40ea05fc-4c8e-4bea-b68c-fa0ef4c95ae4","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":235,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"f873f0af-d2fe-40a6-ab44-b2c514626df8","block_type":"box","text":"transition plans.","page_number":235,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"154613a9-864b-470f-b1f2-040dcf2e77e7","block_type":"box","text":"20","page_number":235,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"8031a85d-7ae6-4ee3-a668-ad21423e0b4e","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":235,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"dd30a536-9e4c-494b-8914-7c3b68998c40","block_type":"box","text":"repor ting approaches.","page_number":235,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"eb667f31-a4d1-4de8-bbbf-b2393ab309f7","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":235,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"85750bcf-7c54-457f-923a-ab7149ba381d","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":235,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"5db9c5b5-6dc7-4f1a-89d3-bb4c64843fe3","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":235,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"60e7bea1-ca46-419f-b289-266cebeca4c4","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":235,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"d8fbc0f5-51ec-4217-93c9-7fd4cf8c57d3","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":235,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"28ec8380-0611-4e56-92ca-c5bca6032826","block_type":"box","text":"informed voting decisions.","page_number":235,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"f9575030-8f08-4319-8a97-46bdb1562bc7","block_type":"box","text":"16","page_number":235,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"3adb8e95-940a-4e20-b9b5-e0384795af1f","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":235,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"fa107ff5-1fd4-4221-a9f9-3c1b30f388a8","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":235,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"b187ba49-3e3c-487b-b6e9-32c98951aabc","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"acd19b5c-3c20-46a5-898b-f09fecbd49a8","block_type":"box","text":"17","page_number":235,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"b97bc63a-fa3f-4deb-9826-77aab6e4b7c8","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":235,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"2773d2a5-afa9-48bd-8b53-6c0b989a151f","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":235,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"98811543-840b-46a3-8290-3e721e5f9bb0","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":235,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"f9272052-ab7b-480c-ac33-bbfaf2155794","block_type":"box","text":"science-based and net-zero targets in line with the global 1.5°C goal.” Websites accessed in December 2025.","page_number":235,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"c89a7d1d-7151-4bdb-b5e4-81cf20a5f023","block_type":"box","text":"18","page_number":235,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"3118ed7f-1acd-45da-b3d0-cc135bb57d8c","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":235,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"79b499bb-c664-4235-b722-7a6449977c9f","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":235,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"fbef6a1e-0b29-4195-bb82-4ed8351d0b6d","block_type":"box","text":"complexity for scope 3 emissions and the lack of direct control by companies over the requisite data, we find it most","page_number":235,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"ab37348c-501c-48b4-ac5d-a51f5c57a2de","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":235,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"ee05476b-cc2f-45ee-b386-8c9db7f08d76","block_type":"box","text":"material to their business models.","page_number":235,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"b68b8c87-8428-4d02-9b69-15458a2b643e","block_type":"box","text":"19","page_number":235,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"9020365e-0682-4f1f-b67a-63affe6253a1","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":235,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"d890ea68-47a6-4616-bdfa-8562e0cd7d23","block_type":"box","text":"December 2025.","page_number":235,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"6ed0ca62-b307-4048-b6f0-6aac5ca02a2c","block_type":"box","text":"20","page_number":235,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"08216531-50ef-49b1-bf7b-a2dffae37067","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":235,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"be7a1d87-7d33-4361-bbc4-d93056a70abd","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":235,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"d0beae7c-b907-4a51-8869-de8f370d8d5e","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":235,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"5371ad89-2299-4c36-aa69-aeb20b32585b","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":235,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"a3abaed8-267f-46ce-9696-cb59dc9e4857","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":235,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"c14650a4-61f1-449c-93a5-04b4b2de6536","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Where the dedicated team","page_number":236,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"78e3e3d0-cc75-4a5d-bb9c-627e12214493","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":236,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"bbdc4e8f-51c6-4315-81db-f168671a9a25","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":236,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"bc353aef-2c88-4cb8-b289-15819903e95c","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":236,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"5744f114-e946-414c-9442-5fc085cc1a70","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. In cer tain markets, the","page_number":236,"box":{"x":69,"y":659,"width":808,"height":11}},{"id":"abf3783f-a844-4233-83da-57aaff7ef0da","block_type":"box","text":"team may withhold suppor t for the discharge of the supervisory board or equivalent and/or board repor ts.","page_number":236,"box":{"x":68,"y":675,"width":758,"height":11}},{"id":"9498ec9e-59be-45b6-8b65-3eea47254148","block_type":"box","text":"23","page_number":236,"box":{"x":828,"y":675,"width":9,"height":4}},{"id":"706e58fe-e69d-4946-9d06-353bae3201cd","block_type":"box","text":"21","page_number":236,"box":{"x":69,"y":704,"width":9,"height":5}},{"id":"a6999787-6a16-4b5f-a0dd-84beddfa84eb","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":704,"width":825,"height":11}},{"id":"5557d37b-ec08-44f2-bc9a-94966691f781","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":236,"box":{"x":70,"y":719,"width":835,"height":11}},{"id":"8ad068ef-55d6-4771-96a0-92f3b86e1221","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":236,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"38783719-afec-40bc-9ef6-e11a538a6fcd","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":236,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"577ea6aa-5a87-4c65-b072-a4611d07626d","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":236,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"d3e6fdb3-6da4-401b-9094-5e4fdc1d6909","block_type":"box","text":"Website accessed in December 2025.","page_number":236,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"3d42a5f3-e9ac-4480-8f01-0c1e052e0a04","block_type":"box","text":"22","page_number":236,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"d185caa1-44e3-4cf4-b578-1732d0ceee85","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":236,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"68bae17f-6c30-45dd-bae5-481215be4867","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":236,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"cd130eb2-0f38-455a-bcc4-4fac7d7d2fa4","block_type":"box","text":"23","page_number":236,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"d77843f5-d9b1-42d6-bccd-2d1579c07b1b","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":236,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"62427ec3-d81d-4475-8392-0087c9a0151e","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":236,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"fe98ce80-9f81-4144-af8c-56ab748813ab","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d519a17d-5999-4949-83af-0e6777cf35fa","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":236,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"c644a632-bd48-4c32-8496-23f561cd2bf6","block_type":"box","text":"BNM1026U-6033397-19205809","page_number":236,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8ced800-af61-4083-8538-7ba5d0a5670f","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":237,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"b9843704-ccdf-4f70-8440-bff85a9be207","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":237,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"8c53141a-7b8e-4a01-907e-3329fe524806","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":237,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"dc1cae99-57a1-4355-990b-b57db4cc323f","block_type":"box","text":"24","page_number":237,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"e6bfe499-833b-4934-9d96-06c1e9f3e67d","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":237,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"cce741bc-af4e-40c8-8370-63dbd6292e93","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":237,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"e3ab63f5-003c-4430-81cf-4fb2c4cbfe68","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":237,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"16458ac3-43fa-4e7d-b460-d94e4072d35f","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":237,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"341e23fb-6fcf-490c-b4b1-f53269769d8b","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":237,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"a5b311c4-bb66-4280-b1ce-25c2c52a9c90","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":237,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"1690de20-6c59-40b3-85a3-2b0afe44b632","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":237,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"218f9524-f378-40fd-996d-451a6a467dfc","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":237,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"b81465b2-3d49-4d29-acf5-e5f36ede14a0","block_type":"box","text":"transition plan and targets.","page_number":237,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"4233b377-5e30-47bc-b504-834720473531","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":237,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"c79aabc5-eefe-4be2-b6d1-e72610619ddd","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":237,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"18df8efe-43c6-48a8-a55a-a77adb1fa20a","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":237,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"8c74906c-0b86-4601-b64b-44bcd1e701c6","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":237,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"9bc9b082-5616-47a6-8faa-db7c99630973","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":237,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"6b8b066f-0590-4a58-9013-98d7f4fcd08d","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":237,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"241a1e8c-9917-498e-8345-b0da0a8ab6b4","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":237,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"0b4badeb-99e2-44af-b181-24b92e2ec2d5","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":237,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"84893942-a693-475c-af27-7ab36813e30a","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":237,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"7c21b9b2-c18c-4f89-a09b-4b70afafa794","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":237,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"8e6da63f-2c30-4f7c-840c-70d213b2af4d","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":237,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"1247975d-b1cc-4c2c-a981-ec2b1e7f82ec","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"50213384-2a27-40c5-a36b-1f2f0cd6f141","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":237,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"62444c61-fde7-4d6e-8afd-957beda284ff","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":237,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"cae95012-cd0d-4755-8282-b3abcc604626","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"ac78f31e-5e9b-4a41-9a90-7998a96fd31d","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":237,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"2af16f88-807a-4ef1-9724-3de082a8f9e5","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":237,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"8d35a0e4-bfc2-45dc-88c6-5765ba4fdb1c","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"bd18e7f6-2562-4064-a1ef-31c1f7b9758c","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":237,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"eb8b7532-d1dc-451f-9b75-be52342d3244","block_type":"box","text":"•","page_number":237,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"2041803d-088d-45a8-9e4f-4c57803d5c84","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":237,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"e968bfca-d4dc-4335-8035-24d25239b766","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":237,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"8b2a93a6-7450-4c61-8f89-38143b6ccee0","block_type":"box","text":"25","page_number":237,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"6369fb4f-918d-4502-9bac-caa25da4eefb","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":237,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"f1785e5a-a2ee-42ea-be34-8645bb368d76","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":237,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"f5c17f81-7aff-4a27-9d62-0d16babc6838","block_type":"box","text":"RELATED MATTERS","page_number":237,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"ac40c976-f74d-4006-8df7-2b6ad1698e5f","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":237,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"bf4f31fd-25ad-4f99-bd8c-935ee07d5a83","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":237,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"9eba6561-fdc2-4f7c-861d-86a19a02e599","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":237,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"2b2dc8bd-d415-489f-b328-0dea73447fff","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":237,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"468d4827-fdfd-4a08-bf6d-3ac7ed18efd7","block_type":"box","text":"Executive compensation","page_number":237,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"1d7db084-f556-4bcd-bf80-e5502dc4d5ce","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":237,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"8eb73ea0-6071-46d3-8cbb-90799a064263","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":237,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"0abf1a68-f219-4567-9289-28b28bd8ebcb","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":237,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"18854d1e-ae52-4ef8-b507-5eaa0a6e98dd","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":237,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"6ff896b7-c189-4c91-be28-3014647c8706","block_type":"box","text":"24","page_number":237,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"6f960752-9313-4b45-b853-90b8a1a20b90","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":237,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"a15e402c-50af-4cdb-93a7-a7ae590b5e54","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":237,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"0d7a1c5d-fd4a-43ff-9116-b2259db15662","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. 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Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":238,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"3dfe7d98-f6c2-47fc-a9cc-2dd8cd07117b","block_type":"box","text":"strategy and risk management.","page_number":238,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"4509911e-ccd4-4f5a-8fae-42e95b547f6c","block_type":"box","text":"Auditors and audit-related issues","page_number":238,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"484876ef-63ab-48f9-a6d6-0b7e443e43f7","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":238,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"9a3a13d0-7e61-4390-9c07-f76ef690c027","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":238,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"54103f89-3cf4-47e1-940f-5abdc42ee239","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":238,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"e6da6daf-2369-4fb9-aa83-b0a3e1627d74","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":238,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"8b5789e8-eff7-4231-9f40-774c253149d7","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":238,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"07a19cee-e7cc-4d70-aa98-1a606aec826a","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":238,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"b8cd1410-e567-473a-931c-3411e79ae423","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":238,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"c4cb26d7-07ea-47fb-8e76-2bde9b04fa83","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":238,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"9eb934df-23e4-48d0-9060-981905378e43","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":238,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"1ce609f5-ccf1-4c14-b152-f0720e1803b0","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":238,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"ee4ec526-dfd1-4f83-8b07-f7384725253f","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":238,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"76875799-af56-4bb0-b614-1e2d536a9ceb","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":238,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"2028e77c-d591-4ac1-90e6-f708e3320e1a","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":238,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"8d2eec8e-b985-41ed-b256-5431afd3f1e9","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":238,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"1c280c79-7aa1-45b4-82d1-c3cf641f3751","block_type":"box","text":"stakeholders.","page_number":238,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"15a6d9f6-8d21-4032-9bec-38c67dfcdb17","block_type":"box","text":"26","page_number":238,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"c108173f-e9da-4b13-ab98-dbee16909811","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":238,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"096a8e7d-1745-4052-9102-d4ced79bd45a","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":238,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"b8cbc138-dcc5-4b27-989b-c93457394c59","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":239,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"2d0f3d5d-22ab-447f-a4b7-780137c93d2f","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":239,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"feacc473-56b7-497d-9d48-ce185521977f","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":239,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"a4b3a855-b02b-4c93-b9b3-f63292b9e806","block_type":"box","text":"Decarbonization:","page_number":239,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"72c78ac0-5676-47db-b1d9-68a8367b3964","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":239,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"f1d55dbe-3ef3-4d6b-ab76-cb6db26b71b1","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":239,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"eeff6606-82d1-4402-be09-4b1ada42cad0","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":239,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"0d384d67-693d-4ac3-95a4-ff00e96ab4ee","block_type":"box","text":"e.g., methane.","page_number":239,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"b7e8901b-76da-43c8-9e82-fc66af38af70","block_type":"box","text":"Climate-related risks and opportunities:","page_number":239,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"e7a1c2a0-4e2b-4a31-87bb-eda317e79d3a","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":239,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"08ed0a80-f2d3-43b6-bc1f-0766d08beb71","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":239,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"34c9823f-6a11-4391-b442-7f74d73a8b9a","block_type":"box","text":"to physical climate change.","page_number":239,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"09bb7eb0-bb5b-468d-95c3-47a40b27dfcc","block_type":"box","text":"Climate-related transition plan:","page_number":239,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"eb4e8fc1-fc5e-4a88-a498-fcfcaacd1b84","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":239,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"36642402-4c4e-4d76-b07d-a719da9daab1","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":239,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"958932e1-235a-4d42-9a97-4bff72caad26","block_type":"box","text":"greenhouse gas emissions.”","page_number":239,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"21e143fd-f0f8-4990-a9be-1ef697f79552","block_type":"box","text":"27","page_number":239,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"f4b21b83-5f0c-4b4f-a012-6e7a5d8a510c","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":239,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"2bdc7a0c-1e4b-4395-8e56-9422974f6d05","block_type":"box","text":"Targets that “","page_number":239,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"2392a081-633a-4804-82d7-40d8717a4642","block_type":"box","text":"are in line with what the latest climate science","page_number":239,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"96bd5e09-cff1-4949-8497-0a00bfd66c8c","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":239,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"e27d1d37-6c44-409d-ac62-e195c2bb0ce3","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":239,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"22ceaf7d-d5e0-4d7c-96ad-6dd06f652313","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":239,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"65d110ae-cc3a-40f0-b704-a6524b45508a","block_type":"box","text":"with the Paris Agreement goals.”","page_number":239,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"0460f922-22a1-4397-85c4-c9d487a41e11","block_type":"box","text":"28","page_number":239,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"68a4d1ea-fd89-4803-ac39-e36904e2b763","block_type":"box","text":"Scope 1:","page_number":239,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"84904630-b245-48c5-b1a5-f09f5827ff12","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":239,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"d92bf861-6d30-4514-8c1a-73ade76c7b92","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":239,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"a0699652-9e66-4917-b31c-f37959b8ba21","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":239,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"73a8d88c-4f28-4420-8174-90ffeca6e346","block_type":"box","text":"29","page_number":239,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"727ccee8-785d-408d-8c67-3b455dca9d49","block_type":"box","text":"Scope 2","page_number":239,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"b1c5bab8-2d7d-423f-adf3-ff3e89b5fdff","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":239,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"0e0d2d6d-4c96-40db-b654-b6741e93c5d6","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":239,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"83e1a7b4-5a1d-4d35-9ba5-1ad83ef92e50","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":239,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"e72c7870-9216-4614-8a54-12e266a0e4b7","block_type":"box","text":"30","page_number":239,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"a2d3d5d6-82cb-4f7b-8dba-fcffc60ef3b3","block_type":"box","text":"Scope 3:","page_number":239,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"6fb63220-35df-4a71-880b-162a38b8d574","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":239,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"34527d24-026a-4e49-9a60-39476e0ada21","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":239,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"9ade2568-1642-420f-bbad-1f3998bbb91c","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":239,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"71d0683d-ac13-4437-9415-4ab304a2cb6c","block_type":"box","text":"31","page_number":239,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"fd45d48d-8cd5-4702-a826-81dd8321e062","block_type":"box","text":"27","page_number":239,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"59aae6f1-1174-4fda-aa69-5abcf0a84ffc","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":239,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"8772cec8-cfa7-492c-99dc-49d5df9d2f43","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":239,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"1f1bc56f-e7a0-4d8a-ae7e-3db328899fbe","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":239,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"d2843d36-5dc0-4a64-bc04-f668542a0061","block_type":"box","text":"28","page_number":239,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"9c10b6c7-6f20-465b-b419-a6e1c52dd1b7","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":239,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"db21a298-3648-42b5-819b-f99244b90a42","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. 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